Deck 3: The Strategy Experience Phase 3

Question 1

Which organisational structure most clearly reflects the way WRSX manages its businesses?
a) Functional structure.
b) Multi-divisional structure.
c) Matrix Structure.
d) Transnational structure.
e) Project based structure.

Answer 1

b) Multi-divisional structure.

Question 2

Which TWO of the following are relevant criteria for assessing whether a strategy is feasible according to the SAFe criteria?
a) Stakeholders will be satisfied with the strategy.
b) The strategy can be financed.
c) The strategy addresses the key opportunities and constraints which the organisation faces.
d) The required resources can be obtained and integrated.

Answer 2

b) The strategy can be financed. d) The required resources can be obtained and integrated.

Question 3

Given that WRSX has been built up from a series of mergers and acquisitions and has multiple businesses and has several partners, which of the following approaches to managing change is most likely to be effective?
a) An approach to change which is built on collaboration and participation.
b) An approach to change which is built on edict and coercion.
c) An approach to change which is directed from the centre and imposed on subsidiaries.
d) WRSX is doing well in all of its businesses so there is no need for significant change.

Answer 3

a) An approach to change which is built on collaboration and participation.

Question 4

WRSX is considering acquiring an advertising agency on the west coast of the USA. Which TWO of the following statements about this potential acquisition are true?
a) Access to new knowledge or skills is a primary objective for acquiring 'Mind2Mind' - a specialist agency, successful in promoting high tech brands.
b) WRSX should have increased their offer for Gumtree to match the higher offer of a rival since the value placed on the company following due diligence was an under-estimate.
c) The advantage of acquiring a west coast agency is that better service levels can be provided by a local supplier to west coast businesses rather than serving clients from the New York office.
d) Setting up a wholly owned subsidiary on the west coast from scratch is a preferable option to making an acquisition because it is cheaper and WRSX has the required skills.

Question 5

Which TWO of the following are potential dangers of using a formal strategic planning system at WRSX?
a) It may help to co-ordinate business level strategies.
b) It may be too top down and people lose a sense of ownership of the strategy.
c) It may dampen innovation and creative thinking.
d) It takes account of the realities of political and cultural influences on strategy.

Question 6

Which TWO of the following are methods used for assessing the profitability of strategic options?
a) Forecasting the return on capital employed.
b) Estimating the impact of the investment on the current ratio.
c) Estimating the impact of the investment on the gearing ratio.
d) Forecasting the value of the future returns using the discounted cash flow technique.

Question 7

Which of the following statements about the practice of strategic management is correct?
a) Strategy is the exclusive concern of the CEO and top management team and typically no one else is involved in strategic decisions.
b) Strategic planners may have a formal responsibility for co-ordinating the strategy making process and play a crucial role in analysis and disseminating thinking on strategy within an organisation.
c) External strategy consultants typically have little access to the CEO but a high level of responsibility for implementing strategic change.
d) Strategy workshops are most useful when the urgency of change is high.

Question 8

WRSX is considering pitching for contracts in the field of 'social marketing'. Which THREE of the following statements are correct?
a) Social marketing is concerned with the use of marketing principles to influence human behaviour in order to improve health and safety.
b) Working on Government contracts is unlikely to add to the agency's profits or reputation.
c) Accepting contracts such as the 'Campaign to Reduce Obesity' will cause a strategic dilemma for WRSX as it has existing clients in the fast food industry who oppose the Government campaign.
d) Accepting social marketing contracts can enhance the agency's creative reputation and improve its social responsibility rating.