Question 1

What factors are important to understand when attempting a turnaround within an industry that is declining?

Accepted Answer

.The nature and speed of the decline and whether the speed of decline is the same in all segments.
.The ability of an organization to target those market segments that are not in decline or that are performing better.
.To understand the exit costs for all competitors,as this will affect the degree of urgency an organization feels.
.The opportunities or threats which exist as a result of competitor activities.

Question 2

Sustained recovery is likely to involve a genuine and successful turnaround,possibly through new product development or market repositioning.

Accepted Answer

A) True 
 B)False  True

Question 3

Ultimate organization failure happens when:

Accepted Answer

A)   Processes and procedures no longer work.
B)   Customers and suppliers become dissatisfied.
C)   It is liquidated or sold.
D)   It's brand becomes devalued. C

Question 4

Differences in performance among firms are mostly explained by:

Accepted Answer

A)   The industries in which they participate
B)   Whether or not they have access to low cost capital
C)   Differences in what companies do, what they fail to do and how they operate
D)   Whether they are publicly held and subject to financial market scrutiny or privately held

Question 5

What are the main characteristics of non-recoverable situations where there is little chance of an organization surviving?

Accepted Answer

The answer of What are the main characteristics of non-recoverable...

Question 6

The fact that managers need to confront unique and changing market conditions and competitive situations for which there is often no historical record to guide them explains why strategic decisions are characterized as:

Accepted Answer

A)   Difficult to reverse
B)   Costly to implement
C)   Ill-structured and non-routine
D)   Having a significant effect on the subsequent actions of the organization

Question 7

What should organizations do with stakeholders that have a large influence on environmental uncertainty?

Accepted Answer

A)   Fight against them with competitive weapons
B)   Ignore them
C)   Just monitor their activities
D)   Partner with them

Question 8

A turnaround strategy that emphasizes selling and advertising involves:

Accepted Answer

A)   Reducing the advertising budget
B)   Developing new products for new markets.
C)   Selected additional expenditure in order to generate greater revenue.
D)   Employing more sales staff.

Question 9

What are the main turnaround strategies enacted by organizations?

Accepted Answer

The answer of What are the main turnaround strategies enacted...

Question 10

A dominating strategic leader will protect an organization from the possibility that it may be failing.

Accepted Answer

A) True 
 B)False

Question 11

One capability characteristic of a firm with strategic flexibility is the capacity to learn.

Accepted Answer

A) True 
 B)False

Question 12

A failure to develop new corporate or competitive strategies will not hasten the possibility that an organization may be failing.

Accepted Answer

A) True 
 B)False

Question 13

Recessions alone do not put organizations in decline,but they can:

Accepted Answer

A)   Highlight existing weaknesses either created in, or hidden in, boom conditions.
B)   Flag up aspects of management that enable growth.
C)   Show how relationships with external stakeholders are maintained.
D)   Create stronger links between marketing and finance.

Question 14

An organization may be relatively unsuccessful compared with its competitors for a prolonged period of time meaning it is failing.

Accepted Answer

A) True 
 B)False

Question 15

Sustained survival implies that a turnaround is complete with significant growth levels.

Accepted Answer

A) True 
 B)False

Question 16

Sustained recovery is not likely when:

Accepted Answer

A)   There are fewer causes of decline
B)   The crisis is not deep-rooted
C)   Customers have moved to using a substitute product
D)   There is support from key stakeholders for the changes required

Question 17

Poor strategic leadership in terms of building an appropriate organization might mean that key issues or key success factors are ignored or are not given the attention they deserve.

Accepted Answer

A) True 
 B)False

Question 18

What are the main features of a sustained recovery?

Accepted Answer

The answer of What are the main features of a...

Question 19

An organization without adequate financial management might:

Accepted Answer

A)   Ignore aspects of cost and cash-flow management
B)   Have tight budget controls
C)   Have clear financial reporting processes
D)   Assign financial responsibility at all managerial levels

Question 20

In a recession:

Accepted Answer

A)   Budgets can be relaxed as there is more capital available.
B)   The number of failing organizations reduces.
C)   Retrenchment strategies are frequently required as demand falls and costs need containing.
D)   Strategies become obsolete.

Exam 12: Strategic Failure and Turnaround

What factors are important to understand when attempting a turnaround within an industry that is declining?

Sustained recovery is likely to involve a genuine and successful turnaround,possibly through new product development or market repositioning.

Ultimate organization failure happens when:

Differences in performance among firms are mostly explained by:

What are the main characteristics of non-recoverable situations where there is little chance of an organization surviving?

The fact that managers need to confront unique and changing market conditions and competitive situations for which there is often no historical record to guide them explains why strategic decisions are characterized as:

What should organizations do with stakeholders that have a large influence on environmental uncertainty?

A turnaround strategy that emphasizes selling and advertising involves:

What are the main turnaround strategies enacted by organizations?

A dominating strategic leader will protect an organization from the possibility that it may be failing.

One capability characteristic of a firm with strategic flexibility is the capacity to learn.

A failure to develop new corporate or competitive strategies will not hasten the possibility that an organization may be failing.

Recessions alone do not put organizations in decline,but they can:

An organization may be relatively unsuccessful compared with its competitors for a prolonged period of time meaning it is failing.

Sustained survival implies that a turnaround is complete with significant growth levels.

Sustained recovery is not likely when:

Poor strategic leadership in terms of building an appropriate organization might mean that key issues or key success factors are ignored or are not given the attention they deserve.

What are the main features of a sustained recovery?

An organization without adequate financial management might:

In a recession: