Question 1

Scenario planning and PESTLE analysis can be used to identify the external opportunities and threats facing an organization.

Accepted Answer

A) True 
 B)False  True

Question 2

An organization has to decide whether it would be better off undertaking manufacturing of a particular part within the organization or outsourcing it to someone else. This is popularly known as a ______________ decision.

Accepted Answer

Make or buy

Question 3

The weaknesses that the balanced scorecard is supposed to address in relation to performance measurement are: Please select all that apply.

Accepted Answer

A)   Traditional financial measures only offer a snapshot of company performance.
B)   Traditional financial measures do not indicate how the organization might perform in the future.
C)   Strategic goals on their own do not translate into measures that can guide employees.
D)   Managers don't communicate the strategic goals to employees. A, B, C

Question 4

The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:

Accepted Answer

A)   Financial measures
B)   Employee satisfaction measures
C)   Customer satisfaction measures
D)   Technological innovation measures

Question 5

The overall purpose of the balanced scorecard approach is to:

Accepted Answer

A)   Help turn strategy into action
B)   Benchmark against competitors
C)   Measure financial performance
D)   Measure product quality

Question 6

Which two countries are most likely to give prominence to shareholders in their corporate governance framework?

Accepted Answer

A)   Germany and France
B)   Japan and South Korea
C)   Sweden and Norway
D)   UK and USA

Question 7

The leadership style of the person leading an organization would come under which support activity?

Accepted Answer

A)   Procurement
B)   Technology development
C)   Human resource management
D)   Firm infrastructure

Question 8

The primary and support activities contain a further subdivision of activities that impact on competitive advantage. These are:

Accepted Answer

A)   Direct activities, indirect activities, and quality assurance
B)   Direct activities, indirect activities, and learning
C)   Direct activities, indirect activities, and development
D)   Direct activities, indirect activities, and peripheral activities

Question 9

There are a number of strategic decisions to make concerning the value chain. These might include: Please select all that apply.

Accepted Answer

A)   Whether to make or buy a particular product or service
B)   How knowledge is shared throughout the organization
C)   How each activity is linked together
D)   How to achieve competitive advantage

Question 10

The support activities in Porter's Value Chain are:

Accepted Answer

A)   Procurement, technology development, human resource management, finance
B)   Procurement, technology development, human resource management, firm infrastructure
C)   Procurement, technology development, human resource management, leadership
D)   Procurement, technology development, human resource management, organizational structure

Question 11

Which of the following statements represent criticisms of the SWOT analysis? Please select all that apply.

Accepted Answer

A)   The same factor can be an opportunity and a threat.
B)   It is out of date.
C)   It is not prioritized.
D)   It is ambiguous.

Question 12

Which of the following activities is part of the procurement activity? Please select all that apply.

Accepted Answer

A)   Receiving goods into the operation
B)   Negotiating prices with suppliers
C)   Obtaining fixed assets such as plant and machinery
D)   Deciding where to store materials for use in production

Question 13

Benchmarking is a popular tool to measure performance. Benchmarking involves the continual process of comparing organizational performance against:

Accepted Answer

A)   Industry standards
B)   High achieving organizations
C)   Rivals
D)   Organizations within the same industry

Question 14

Kaplan and Norton suggest that 20-30 measures are appropriate for the balanced scorecard approach.

Accepted Answer

A) True 
 B)False

Question 15

The interaction between value chains of the organization and its suppliers, distributors, and consumers is referred to as:

Accepted Answer

A)   The value chain system
B)   3PL
C)   Vertical integration
D)   Horizontal integration

Question 16

Milton Friedman, the famous economist is of the view that 'business is society'.

Accepted Answer

A) True 
 B)False

Question 17

Firms possessing similar resources operating in the same industry can experience different levels of profitability. The situation is referred to as ______________________.

Accepted Answer

The answer of Firms possessing similar resources operating in the...

Question 18

The principal-agent problem is more profound in a small business.

Accepted Answer

A) True 
 B)False

Question 19

In general, it is not advisable to outsource an activity that is of strategic importance.

Accepted Answer

A) True 
 B)False

Question 20

Within the debate regarding differential performance, Rumelt (1991) is of the view that:

Accepted Answer

A)   Industry is the main driver of firm performance
B)   Factors at the individual firm level, such as resources and strategy, are the main drivers of firm performance
C)   Factors in the external environment are the main drivers of firm performance
D)   Leadership is the main driver of firm performance

Exam 4: The Organisation: Value-Creating Activities

Scenario planning and PESTLE analysis can be used to identify the external opportunities and threats facing an organization.

An organization has to decide whether it would be better off undertaking manufacturing of a particular part within the organization or outsourcing it to someone else. This is popularly known as a ______________ decision.

The weaknesses that the balanced scorecard is supposed to address in relation to performance measurement are: Please select all that apply.

The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:

The overall purpose of the balanced scorecard approach is to:

Which two countries are most likely to give prominence to shareholders in their corporate governance framework?

The leadership style of the person leading an organization would come under which support activity?

The primary and support activities contain a further subdivision of activities that impact on competitive advantage. These are:

There are a number of strategic decisions to make concerning the value chain. These might include: Please select all that apply.

The support activities in Porter's Value Chain are:

Which of the following statements represent criticisms of the SWOT analysis? Please select all that apply.

Which of the following activities is part of the procurement activity? Please select all that apply.

Benchmarking is a popular tool to measure performance. Benchmarking involves the continual process of comparing organizational performance against:

Kaplan and Norton suggest that 20-30 measures are appropriate for the balanced scorecard approach.

The interaction between value chains of the organization and its suppliers, distributors, and consumers is referred to as:

Milton Friedman, the famous economist is of the view that 'business is society'.

Firms possessing similar resources operating in the same industry can experience different levels of profitability. The situation is referred to as ______________________.

The principal-agent problem is more profound in a small business.

In general, it is not advisable to outsource an activity that is of strategic importance.

Within the debate regarding differential performance, Rumelt (1991) is of the view that: