MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is not one of the types of strategy identified in the hierarchy of strategies?
1) Busines
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is not one of the types of strategy identified in the hierarchy of strategies?
1) Business level strategy 2) Operational level strategy
3) Corporate level strategy 4) Market level strategy
2) What do you understand by the term ʹstrategic directionʹ?
1) ʹStrategic directionʹ refers to the underlying intent of a strategy, e.g. growth, consolidation, market
entry or diversification.
2) ʹStrategic directionʹ refers to the general direction in which an industry as a whole is moving.
3) ʹStrategic directionʹ refers to the leadership offered by the senior management team of an
organisation.
4) ʹStrategic directionʹ refers to the direction the organisation would like to move in the next five years.
3) What does SBU stand for?
1) Single business unit 2) Services business unit
3) Strategic business unit 4) Small business unit
4) Which type of strategy focuses on how resources, processes and people can be used to deliver high-level
strategies?
1) Operational strategy 2) Business-level strategy
3) Operational strategy 4) Strategic-business-level strategy
5) Which one of the following do you think is not a reason why it is important for businesses to study
technology trends as part of the PEST analysis?
1) Technological innovation leads to discontinuous change in industries.
2) New technology can reduce costs.
3) Technological innovation can provide new ways of distributing products.
4) Technological innovation has to be effectively managed in an organisation.
6) What term is used for a plausible alternative views of how the business environment might develop in the
future?
1) Strategic option 2) Value driver 3) Pestelate 4) Scenario
7) Which of the following is not an insight derived from using the five forces model?
1) It explains and predicts the industry structure. Industry structure refers to the number of players in
an industry and the concentration of supply.
2) Understanding of the link between competitive rivalry and the potential profitability of competitors
in the industry.
3) It clearly identifies the opportunities and threats from the businessʹs industry environment.
4) It provides understanding of the relative cost positions of rivals, suppliers and customers.
8) Which of the following is not a common criticism of the five forces model?
1) The model is essentially designed to evaluate private sector competitive environments and is not
really appropriate for the not-for-profit sector.
2) The model doesnʹt provide an insight into macro-environmental factors that shape the industry
context.
3) The model is often criticised for providing only a snapshot of the industry at a point in time, i.e. it is
too static.
4) The model assumes business environments are characterised by competitive rather than co-operative
relations between firms and between firms and their suppliers and customers.
9) Which of the following is not a typical example of critical success factors?
1) Product quality 2) Effective leadership
3) Price competitiveness 4) Effective distribution
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