Question 1

Which of the evaluation criteria listed below do you believe will have greatest importance for a medium sized firm seeking to grow in a dynamic industry?

Accepted Answer

A)  Feasibility in terms of available resources and competencies 
B)  Suitability of the strategy for the situation facing the firm 
C)  Consistency with the organisation's mission and objectives 
D)  Acceptability to shareholders 
A)  Feasibility in terms of available resources and competencies 
B)  Suitability of the strategy for the situation facing the firm 
C)  Consistency with the organisation's mission and objectives 
D)  Acceptability to shareholders A

Question 2

Which of the following does not help explain how Amazon.com was able to maintain its growth strategy, even though it took a long time before it made a profit?

Accepted Answer

A)  The company was able to build its technical competencies and brand effectively. 
B)  The strategy proved suitable given growth of the Internet. 
C)  Amazon.com was able to raise large amounts of money from share issues to finance its growth. 
D)  The macroenvironment was very turbulent. 
A)  The company was able to build its technical competencies and brand effectively. 
B)  The strategy proved suitable given growth of the Internet. 
C)  Amazon.com was able to raise large amounts of money from share issues to finance its growth. 
D)  The macroenvironment was very turbulent. D

Question 3

Which of the following financial methods most easily shows whether a company's cumulative cash flow over a given period is likely to exceed the funds invested?

Accepted Answer

A)  Payback period 
B)  Discounted cash flow 
C)  Non- discounted cash flow 
D)  Return on capital employed 
A)  Payback period 
B)  Discounted cash flow 
C)  Non- discounted cash flow 
D)  Return on capital employed A

Question 4

When evaluating strategic options which of the following criteria would you not normally use?

Accepted Answer

A)  Acceptability of the strategy 
B)  Feasibility of the strategy 
C)  Suitability of the strategy 
D)  Imitability of the strategy 
A)  Acceptability of the strategy 
B)  Feasibility of the strategy 
C)  Suitability of the strategy 
D)  Imitability of the strategy

Question 5

Sensitivity analysis is sometimes referred to as 'so what?' analysis.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an example of market development?

Accepted Answer

A)  Dell enters a previously untapped segment with a selection of products from its existing portfolio. 
B)  Sony begins exporting Play Station 2 to North Korea. 
C)  Tesco opens ten new stores in Germany. 
D)  Jaguar launches the X Type or 'baby Jag'. 
A)  Dell enters a previously untapped segment with a selection of products from its existing portfolio. 
B)  Sony begins exporting Play Station 2 to North Korea. 
C)  Tesco opens ten new stores in Germany. 
D)  Jaguar launches the X Type or 'baby Jag'.

Question 7

Which of the following does not determine the feasibility of a strategy?

Accepted Answer

A)  The competences and core competences required 
B)  The resource requirements of the strategy 
C)  The willingness of key shareholders to support the strategy 
D)  The organisational system requirements of the strategy 
A)  The competences and core competences required 
B)  The resource requirements of the strategy 
C)  The willingness of key shareholders to support the strategy 
D)  The organisational system requirements of the strategy

Question 8

Which of the following is not involved when evaluating the acceptability of a strategic option?

Accepted Answer

A)  The competitive advantage likely to be achieved by the strategy in terms of profitability, costs and benefits and impact on shareholder value 
B)  The ability of the organisation to secure the resources required to implement the strategy 
C)  The attractiveness of the strategy to the organisation's stakeholders 
D)  The degree of risk that the strategy involves in terms of the risk and the ability of the business to stand that risk 
A)  The competitive advantage likely to be achieved by the strategy in terms of profitability, costs and benefits and impact on shareholder value 
B)  The ability of the organisation to secure the resources required to implement the strategy 
C)  The attractiveness of the strategy to the organisation's stakeholders 
D)  The degree of risk that the strategy involves in terms of the risk and the ability of the business to stand that risk

Question 9

Which of the following factors should be taken into account when evaluating the acceptability of a strategy?

Accepted Answer

A)  The attractiveness of the strategy to the organisation's stakeholders 
B)  The degree of fit with the organisation's culture, structure and systems 
C)  The impact on strategic capability development 
D)  The match between the aims of the strategy and external trading conditions 
A)  The attractiveness of the strategy to the organisation's stakeholders 
B)  The degree of fit with the organisation's culture, structure and systems 
C)  The impact on strategic capability development 
D)  The match between the aims of the strategy and external trading conditions

Question 10

Which of the following would a market penetration strategy not involve?

Accepted Answer

A)  Efficiency gains and cost reductions 
B)  Improved service or quality to improve the reputation of the organisation and differentiate it 
C)  Improving existing core competencies or building new ones. 
D)  Existing core competencies 
E)  Exporting to increase sales 
A)  Efficiency gains and cost reductions 
B)  Improved service or quality to improve the reputation of the organisation and differentiate it 
C)  Improving existing core competencies or building new ones. 
D)  Existing core competencies 
E)  Exporting to increase sales

Question 11

What is the TOWS matrix?

Accepted Answer

A)  An upside down SWOT analysis 
B)  A matrix assessing Time versus Opportunity and Willingness versus Strength 
C)  A matrix assessing Technology, Organisation, Work processes and Systems 
D)  A way of identifying strategic options addressing different combinations of internal factors(strengths and weaknesses) and external factors (opportunities and threats) 
A)  An upside down SWOT analysis 
B)  A matrix assessing Time versus Opportunity and Willingness versus Strength 
C)  A matrix assessing Technology, Organisation, Work processes and Systems 
D)  A way of identifying strategic options addressing different combinations of internal factors(strengths and weaknesses) and external factors (opportunities and threats)

Question 12

Which technique assesses the extent to which the success of a preferred strategy depends on key assumptions which underlie the strategy?

Accepted Answer

A)  How- much analysis 
B)  Liquidity testing 
C)  Cash- flow analysis 
D)  Sensitivity analysis 
A)  How- much analysis 
B)  Liquidity testing 
C)  Cash- flow analysis 
D)  Sensitivity analysis

Question 13

In evaluating strategic options, what is the purpose of the 'suitability' test?

Accepted Answer

A)  To determine if the strategic option is appropriate for the circumstances facing the organisation. 
B)  To determine if the organisation has the resources needed to implement the strategy. 
C)  To determine if the riskiness of the strategy matches what is acceptable to the organisation. 
D)  To determine if the strategic option suits the management style of the organisation. 
A)  To determine if the strategic option is appropriate for the circumstances facing the organisation. 
B)  To determine if the organisation has the resources needed to implement the strategy. 
C)  To determine if the riskiness of the strategy matches what is acceptable to the organisation. 
D)  To determine if the strategic option suits the management style of the organisation.

Question 14

Which of the following issues would not be considered when evaluating the 'acceptability' of a strategic option?

Accepted Answer

A)  Values and ethics 
B)  Competitor opinions 
C)  Risk 
D)  Financial returns 
A)  Values and ethics 
B)  Competitor opinions 
C)  Risk 
D)  Financial returns

Question 15

Which criteria do you think take precedence in strategy selection by political parties?

Accepted Answer

A)  Costs to the taxpayer 
B)  Acceptability of the strategy to stakeholders 
C)  Feasibility of the strategy in terms of resources and competencies 
D)  Financial returns to the party 
A)  Costs to the taxpayer 
B)  Acceptability of the strategy to stakeholders 
C)  Feasibility of the strategy in terms of resources and competencies 
D)  Financial returns to the party

Question 16

In developing new directions for strategy development why may it be necessary to develop new capabilities?

Accepted Answer

A)  New capabilities may be needed to operate in new markets or to develop new products. 
B)  The HR manager introduces a new training programme. 
C)  Existing capabilities are already best practice in the industry. 
D)  The organisation has achieved 'lock- in'. 
A)  New capabilities may be needed to operate in new markets or to develop new products. 
B)  The HR manager introduces a new training programme. 
C)  Existing capabilities are already best practice in the industry. 
D)  The organisation has achieved 'lock- in'.

Question 17

Which of the following defines a market penetration strategy?

Accepted Answer

A)  Entering new markets and segments with existing products 
B)  Developing new products for sale in existing markets 
C)  Attempting to increase share in existing markets with existing products 
D)  Developing new products to sell in new markets 
A)  Entering new markets and segments with existing products 
B)  Developing new products for sale in existing markets 
C)  Attempting to increase share in existing markets with existing products 
D)  Developing new products to sell in new markets

Question 18

Which of the following is considered to be a major disadvantage of internal development?

Accepted Answer

A)  The firm can get exactly the result it wants without compromise. 
B)  The organisation shares all costs and risks. 
C)  In a rapidly changing environment it takes too much time to achieve. 
D)  It is difficult to achieve dramatic change from within. 
A)  The firm can get exactly the result it wants without compromise. 
B)  The organisation shares all costs and risks. 
C)  In a rapidly changing environment it takes too much time to achieve. 
D)  It is difficult to achieve dramatic change from within.

Question 19

Which of the following is not a disadvantage of external methods of development?

Accepted Answer

A)  New skills and competencies can be obtained quickly. 
B)  Cultural differences leading to conflict over methods of working 
C)  Potential conflict of objectives between partner organisations 
D)  The high cost of mergers and acquisitions 
A)  New skills and competencies can be obtained quickly. 
B)  Cultural differences leading to conflict over methods of working 
C)  Potential conflict of objectives between partner organisations 
D)  The high cost of mergers and acquisitions

Question 20

If an organisation's objective is to spread market portfolio by gaining a presence in foreign markets, which would be the most suitable of the following alternatives?

Accepted Answer

A)  Forming a strategic alliance with a supplier abroad 
B)  Investing heavily in the development of a new product 
C)  Investing heavily in an advertising campaign on national television 
D)  Forming a strategic alliance with a distributor abroad 
A)  Forming a strategic alliance with a supplier abroad 
B)  Investing heavily in the development of a new product 
C)  Investing heavily in an advertising campaign on national television 
D)  Forming a strategic alliance with a distributor abroad

Which of the evaluation criteria listed below do you believe will have greatest importance for a medium sized firm seeking to grow in a dynamic industry?

Which of the following does not help explain how Amazon.com was able to maintain its growth strategy, even though it took a long time before it made a profit?

Which of the following financial methods most easily shows whether a company's cumulative cash flow over a given period is likely to exceed the funds invested?

When evaluating strategic options which of the following criteria would you not normally use?

Sensitivity analysis is sometimes referred to as 'so what?' analysis.

Which of the following is not an example of market development?

Which of the following does not determine the feasibility of a strategy?

Which of the following is not involved when evaluating the acceptability of a strategic option?

Which of the following factors should be taken into account when evaluating the acceptability of a strategy?

Which of the following would a market penetration strategy not involve?

What is the TOWS matrix?

Which technique assesses the extent to which the success of a preferred strategy depends on key assumptions which underlie the strategy?

In evaluating strategic options, what is the purpose of the 'suitability' test?

Which of the following issues would not be considered when evaluating the 'acceptability' of a strategic option?

Which criteria do you think take precedence in strategy selection by political parties?

In developing new directions for strategy development why may it be necessary to develop new capabilities?

Which of the following defines a market penetration strategy?

Which of the following is considered to be a major disadvantage of internal development?

Which of the following is not a disadvantage of external methods of development?

If an organisation's objective is to spread market portfolio by gaining a presence in foreign markets, which would be the most suitable of the following alternatives?

Introducing Strategy

The Environment

Strategic Capability

Governance and Stakeholders

Strategy and Culture

Business-Level Strategy

Innovation Entrepreneurship

Corporate Diversity

International Strategy

Organising for Success

Enabling Success

Managing Change

Strategy Development Processes

The Practice of Strategy

Filters

Exam 10: Directions Methods

Which of the evaluation criteria listed below do you believe will have greatest importance for a medium sized firm seeking to grow in a dynamic industry?

Which of the following does not help explain how Amazon.com was able to maintain its growth strategy, even though it took a long time before it made a profit?

Which of the following financial methods most easily shows whether a company's cumulative cash flow over a given period is likely to exceed the funds invested?

When evaluating strategic options which of the following criteria would you not normally use?

Sensitivity analysis is sometimes referred to as 'so what?' analysis.

Which of the following is not an example of market development?

Which of the following does not determine the feasibility of a strategy?

Which of the following is not involved when evaluating the acceptability of a strategic option?

Which of the following factors should be taken into account when evaluating the acceptability of a strategy?

Which of the following would a market penetration strategy not involve?

What is the TOWS matrix?

Which technique assesses the extent to which the success of a preferred strategy depends on key assumptions which underlie the strategy?

In evaluating strategic options, what is the purpose of the 'suitability' test?

Which of the following issues would not be considered when evaluating the 'acceptability' of a strategic option?

Which criteria do you think take precedence in strategy selection by political parties?

In developing new directions for strategy development why may it be necessary to develop new capabilities?

Which of the following defines a market penetration strategy?

Which of the following is considered to be a major disadvantage of internal development?

Which of the following is not a disadvantage of external methods of development?

If an organisation's objective is to spread market portfolio by gaining a presence in foreign markets, which would be the most suitable of the following alternatives?

Introducing Strategy

The Environment

Strategic Capability

Governance and Stakeholders

Strategy and Culture

Business-Level Strategy

Innovation Entrepreneurship

Corporate Diversity

International Strategy

Organising for Success

Enabling Success

Managing Change

Strategy Development Processes

The Practice of Strategy

Filters