Question 1

Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

Accepted Answer

A)  Reduction in manufacturing cycle times. 
B)  New products developed. 
C)  Increase in market share. 
D)  Higher P/E ratio. 
A)  Reduction in manufacturing cycle times. 
B)  New products developed. 
C)  Increase in market share. 
D)  Higher P/E ratio.

Question 2

Z is a medium-sized UK based accounting practice. Z operates a graduate training scheme. The trainees are given an induction and then placed on a three-year training programme designed to help develop professional skills and experience. The training programme has been in existence for many years. However, there is no clear consensus amongst the partners of Z about what the trainees should be able to do on completion of the programme and therefore what the training programme should emphasize. This lack of clarity is affecting the morale and commitment of the trainees and significant numbers are failing the programme or leaving to join a rival firm. Z's HR Department recognizes the need for committed and well motivated accountants to meet the increased expectations of clients and the competition from rival firms. The HR Department has identified changes to the training programme that can be implemented gradually through a series of initiatives. Which TWO of the following statements regarding the change required in Z are correct? (Choose two.)

Accepted Answer

A)  Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web. 
B)  The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey. 
C)  The need to manage the competitive position is an example of an 'external direct trigger' for change. 
D)  The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model. 
E)  The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model. 
A)  Understanding which day-to-day behaviors to reinforce within the training programme, is about 'routines and rituals' according to the Cultural Web. 
B)  The change would be classified as a 'revolutionary change' according to Balogum and Hope Hailey. 
C)  The need to manage the competitive position is an example of an 'external direct trigger' for change. 
D)  The plans to combat competition would be considered as a 'structure' factor according to the McKinsey 7 S model. 
E)  The skills, abilities and competences of the organization's employee's are a 'hard' factor according to the McKinsey 7 S model.

Question 3

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated. Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

Accepted Answer

A)  Intranet 
B)  Local area network 
C)  Social media 
D)  Ledgers and journals 
E)  Internet
F) Groupware 
A)  Intranet 
B)  Local area network 
C)  Social media 
D)  Ledgers and journals 
E)  Internet
F) Groupware

Question 4

You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement. Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

Accepted Answer

A)  Project evaluations that include the externalities as well as the cash costs. 
B)  Providing financial information with all non-recurring expenditures and incomes removed. 
C)  Ensuring the organization adopts the lowest cost technologies and suppliers. 
D)  Integrated reporting of the triple bottom line of Profits, People and Planet. 
E)  Measures of organization's use of non-renewable resources and environmental emissions. 
A)  Project evaluations that include the externalities as well as the cash costs. 
B)  Providing financial information with all non-recurring expenditures and incomes removed. 
C)  Ensuring the organization adopts the lowest cost technologies and suppliers. 
D)  Integrated reporting of the triple bottom line of Profits, People and Planet. 
E)  Measures of organization's use of non-renewable resources and environmental emissions.

Question 5

Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio: Product 1: Relative market share of 0.1; Market growth rate of -2% Product 2: Relative market share of 4.0; Market growth rate of +3% Product 3: Relative market share of 0.3; Market growth rate of +15% Which TWO of the following statements are CORRECT? (Choose two.)

Accepted Answer

A)  Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale. 
B)  Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered. 
C)  Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral. 
D)  Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements. 
E)  Product 1 is    likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered. 
A)  Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale. 
B)  Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered. 
C)  Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral. 
D)  Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements. 
E)  Product 1 is    likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.

Question 6

When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products. The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years. Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular café, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers. Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

Accepted Answer

A)  Rational 
B)  Freewheeling opportunism 
C)  Incremental 
D)  Emergent 
A)  Rational 
B)  Freewheeling opportunism 
C)  Incremental 
D)  Emergent

Question 7

Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

Accepted Answer

A)  Will there be sufficient time to implement the strategy? 
B)  Will the strategy exploit the core competencies of the business? 
C)  Will the strategy maintain competitive advantage? 
D)  Will customers object to the strategy? 
E)  Will the business be able to deal with the responses of its competitors to the strategy? 
A)  Will there be sufficient time to implement the strategy? 
B)  Will the strategy exploit the core competencies of the business? 
C)  Will the strategy maintain competitive advantage? 
D)  Will customers object to the strategy? 
E)  Will the business be able to deal with the responses of its competitors to the strategy?

Question 8

Company TTT produces a range of products, including products T1 and T5. Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce. However, in addition to external sales T1 is also used as a component of product T5. Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed. Which of the following is an appropriate strategy for TTT to adopt?

Accepted Answer

A)  Divest both product T1 and product T5. 
B)  Harvest product T1 and Divest product T5. 
C)  Harvest both product T1 and product T5. 
D)  Divest product T1 and Harvest product T5. 
A)  Divest both product T1 and product T5. 
B)  Harvest product T1 and Divest product T5. 
C)  Harvest both product T1 and product T5. 
D)  Divest product T1 and Harvest product T5.

Question 9

You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes. With regard to effective teams and change, which THREE of the following statements are correct ? (Choose three.)

Accepted Answer

A)  Teams that cross departmental boundaries can destroy shared values. 
B)  Teams play minor roles in institutional change. 
C)  Individuals must become more than they were when working alone and must develop new commitments and behaviors. 
D)  Teams should continue after their purpose has been served. 
E)  Teams that cross departmental boundaries can develop new performance criteria.
F) Teams enhance learning and address change directly through creating recommendations and new ideas. 
A)  Teams that cross departmental boundaries can destroy shared values. 
B)  Teams play minor roles in institutional change. 
C)  Individuals must become more than they were when working alone and must develop new commitments and behaviors. 
D)  Teams should continue after their purpose has been served. 
E)  Teams that cross departmental boundaries can develop new performance criteria.
F) Teams enhance learning and address change directly through creating recommendations and new ideas.

Question 10

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

Accepted Answer

A)  The performance pyramid is designed to ensure that all activities support the organization's vision. 
B)  The right-hand side of the pyramid contains measures which are predominantly non-financial. 
C)  The left-hand side of the pyramid contains measures which have an external focus. 
D)  The business operating systems level includes the market-related Critical Success Factors. 
E)  The lowest level of the pyramid contains the day-to-day operational measures.
F) The business unit level includes measures which relate to internal systems needed to meet customers' needs. 
A)  The performance pyramid is designed to ensure that all activities support the organization's vision. 
B)  The right-hand side of the pyramid contains measures which are predominantly non-financial. 
C)  The left-hand side of the pyramid contains measures which have an external focus. 
D)  The business operating systems level includes the market-related Critical Success Factors. 
E)  The lowest level of the pyramid contains the day-to-day operational measures.
F) The business unit level includes measures which relate to internal systems needed to meet customers' needs.

Question 11

RRR is a medium sized company, which has built family homes in Country В for twenty years. The Board of RRR wishes to expand company operations and start building homes in the neighboring country. The Board of RRR wishes to undertake a position audit to help in this decision. Which of the following strategic analysis tools would be used in a position audit for RRR?

Accepted Answer

A)  Gap Analysis 
B)  PEST 
C)  SWOT 
D)  Five Forces 
A)  Gap Analysis 
B)  PEST 
C)  SWOT 
D)  Five Forces

Question 12

Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

Accepted Answer

A)  Entering new industries. 
B)  Avoiding competitive disadvantages. 
C)  Achieving advantage over competitors. 
D)  Meeting the needs of key customers. 
E)  Leaving existing industries.
F) Acquisitions, disposals and diversification. 
A)  Entering new industries. 
B)  Avoiding competitive disadvantages. 
C)  Achieving advantage over competitors. 
D)  Meeting the needs of key customers. 
E)  Leaving existing industries.
F) Acquisitions, disposals and diversification.

Question 13

A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests. The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness. Which of the following statements apply to CRM? (Choose all that apply.)

Accepted Answer

A)  The company must be prepared to take customers' needs into account and be able to meet these needs. 
B)  In mature markets, existing customers provide the most likely source of future earnings. 
C)  CRM is about marketing to customers to obtain their loyalty, so customer research is not needed. 
D)  CRM utilizes marketing resources to retain, rather than simply attract new customers. 
E)  The CRM process needs to include increasing the range of products that will be offered to customers. 
A)  The company must be prepared to take customers' needs into account and be able to meet these needs. 
B)  In mature markets, existing customers provide the most likely source of future earnings. 
C)  CRM is about marketing to customers to obtain their loyalty, so customer research is not needed. 
D)  CRM utilizes marketing resources to retain, rather than simply attract new customers. 
E)  The CRM process needs to include increasing the range of products that will be offered to customers.

Question 14

A is a private healthcare organization aiming to provide affordable and accessible high quality patient services. A is introducing Big Data, which has not yet been adopted by the competition. A's database will store a huge amount of information about its patients. Clear access to wide sources of accurate information will enable patients to make more informed choices. Patients will be able to compare not only the prices of drugs, treatments and physicians but also their relative effectiveness. Which of the following concerns should A have about its use of Big Data?

Accepted Answer

A)  Lack of competitive advantage 
B)  Veracity of information 
C)  Variety of information 
D)  Privacy issues 
A)  Lack of competitive advantage 
B)  Veracity of information 
C)  Variety of information 
D)  Privacy issues

Question 15

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis. Within which of the following aspects of the SWOT analysis would RRR include its customer database?

Accepted Answer

A)  Opportunity 
B)  Threat 
C)  Weakness 
D)  Strength 
A)  Opportunity 
B)  Threat 
C)  Weakness 
D)  Strength

Question 16

Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

Accepted Answer

A)  Porter's Value Chain 
B)  Kaplan and Norton's Balanced Scorecard 
C)  PEST Analysis 
D)  Porter's Diamond 
E)  SWOT analysis
F) Porter's Five Forces Model 
A)  Porter's Value Chain 
B)  Kaplan and Norton's Balanced Scorecard 
C)  PEST Analysis 
D)  Porter's Diamond 
E)  SWOT analysis
F) Porter's Five Forces Model

Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated. Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis. Within which of the following aspects of the SWOT analysis would RRR include its customer database?

Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

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Exam 1: E3 - Strategic Management Question Tutorial

Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated. Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

Which of the following would be correct considerations when evaluating the Feasibility of a strategy? (Choose all that apply.)

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

Which THREE of the following issues relate to the Corporate Strategy of an organization? (Choose three.)

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis. Within which of the following aspects of the SWOT analysis would RRR include its customer database?

Which THREE of the following frameworks are used solely to evaluate the external environment of an organization? (Choose three.)

P1 Management Accounting

BA1 - Fundamentals of Business Economics Question Tutorial

BA2 - Strategic Management Question Tutorial

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