Question 1

P owns an internet-based business, called GWiz. based in Country G. GWiz sells gifts, cards and flowers for a variety of occasions including birthdays, weddings and many other special events. P sources her products from a variety of partner suppliers located throughout country G. Customers' orders are delivered by third party couriers across the whole country. The GWiz website is hosted and managed by an IT specialist
P is a member of a local small business trade federation and has been asked to make a presentation to its members on her experience of running GWiz as a 'virtual organisation'.
Which of the following statements could P correctly make on the benefits of virtual organisations?
Select ALL that apply.

Options :

A : The quality of the products and services offered by the partner suppliers is always guaranteed and easy to control.

B : Using partner suppliers who also supply products and services to competitors will help to increase the competitive advantage of the virtual organisation.

C : The costs of operating a virtual organisation are relatively low as there is no need to operate from large premises or employ its own staff.

D : A virtual organisation can look much larger than it actually is through the use of a range of partner suppliers and third party couriers.

E : Using the internet facilitates the assembly of the components that are needed to operate a virtual organisation.

Answer: A,C,D

Question 2

JJJ is a publically quoted advertising agency. JJJ's competitive advantage is based on the expertise of its staff and its reputation in digital media advertising. JJJ has robust systems to protect its intellectual property. These include patents and copyrights. JJJ has also restricted access for most of its staff to its most sensitive data, such as studies of its customers' profitability.
JJJ's new Managing Director, Z, is concerned that when staff leave JJJ, the company loses whatever tacit knowledge they possess. These losses also impact on JJJ's reported profits. In order to remedy the losses of knowledge and the reduced profits Z wants to introduce a knowledge management strategy.
Which of the following steps support the introduction of a knowledge management strategy? (Choose all that apply.)

Options :

A : Z should set a target for reported profit.

B : JJJ needs to acquire and install appropriate hardware and software.

C : JJJ should unfreeze current habits and standard operating procedures.

D : JJJ should convince staff of the benefits of sharing their tacit knowledge.

E : Z should gain the support of the Board of Directors.

F : JJJ should integrate knowledge management and management accounting.

Answer: A,D

Question 3

ABC is an online bank which has just reported substantial trading losses. It has received advice from a leading business consultancy that it should implement the following two strategies:
1. Take advantage of its reputation and brand image by entering a new industry.
2. Update all its networks to fifth generation (5G) as soon as possible. Which TWO of the following strategies has ABC been advised to implement?

Options :

A : Sustainable strategy

B : Foundational strategy

C : Consumer strategy

D : Corporate strategy

E : Ethical strategy

F : Functional or operational strategy

Answer: A,D

Question 4

Company GGG wants to gain competitive advantage and has decided to use data mining.
Which of the following would NOTresultfrom data mining?

Options :

A : Classification

B : Description

C : Forecasting

D : Sequences

Answer: B

Question 5

Which of the following ofPorter's Five Forceswould affect the power of suppliers?

Options :

A : Economies of scale

B : A lack of differentiation

C : Similar sized competitors

D : A lack of substitutes

Answer: D

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