Question 1

There are four main ways in which an organisation can react to environmental situations. Where an organisation recognises an environmental problem but has decided it will be insignificant and have a short-term implication, its likely reaction would be:

Options :

A : Introduce internal controls

B : Increase its flexibility

C : Do nothing

D : Plan major strategic change

Answer: C

Question 2

Each of the following statements represents a “best practice” for implementing and using the balanced scorecard, except:

Options :

A : Balanced scorecard measures should be linked in a “cause-and-effect” manner.

B : Balanced scorecard measures should not be used as part of the performance evaluation process as employees may focus too much on them.

C : Balanced scorecard measures should be consistent with an organization’s strategy.

Answer: B

Question 3

QOS is a marketing consultancy business. QOS’s most recent corporate analysis has identified that three new businesses have recently entered its market and started aggressively targeting QOS’s key clients.

Which ONE of the following categories would these new business entrants to the market be classified within, as part of QOS’s corporate appraisal?

Options :

A : Weakness

B : Opportunity

C : Threat

D : Strength

Answer: C

Question 4

According to Ansoff’s matrix, an organisation that seeks to maintain or increase share of an existing market with an existing product is following which of the following strategies?

Options :

A : Market development

B : Market penetration

C : Product development

D : Diversification

Answer: B

Question 5

A firm’s statement of broad objectives or mission statement should accomplish all of the following except

Options :

A : Stating the moral and ethical principles that guide the actions of the firm.

B : Providing an overall guide to those in high-level, decision-making positions.

C : Outlining strategies for technological development, market expansion, and product differentiation.

D : Defining the purpose of the company.

Answer: C

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