Question 1

Robert Anthony's hierarchy refers to 3 business levels

Accepted Answer

Strategic, Tactical and Operational

Answer

Strategic, Behavioral and Operational

Answer

Change, Tactical and Operational

Answer

Strategic, Tactical and Development

Question 2

A hospital manager is considering the use of temporary nursing staff to fill shortages due to sickness.

Accepted Answer

Operational level

Answer

Tactical level

Answer

Strategic level

Question 3

__________________ planning is applied by top managers.

Accepted Answer

Strategic

Answer

Tactical

Answer

Operational

Answer

None of the choices are correct

Question 4

Which of the following statements is false?

Accepted Answer

None of the statements is false

Answer

Tactical planning looks at the medium term and is more of a specific nature than the strategic planning

Answer

Operational planning looks at the short term (day to day) and is very detailed

Answer

Strategic planning is applied by top managers

Question 5

Select ALL statement(s) below related to strategic management level information needs

Question 6

Select ALL statement(s) below related to tactical/middle management level information needs

Question 7

Select ALL statement(s) below related to operational management level information needs

Question 8

Based on the SWOT Analysis above, which metric below is inappropriate?

Accepted Answer

Number of new products

Answer

Injury reduction rate

Answer

Growth in share of marketing budget use on social media

Answer

Revenue growth rate (trends) with industry grown rate (trends)

Answer

Growth in social media interactions

Question 9

Which of the statement below is false?

Accepted Answer

BCG was designed as a tool for performance measurement

Answer

Those businesses in slower growing mature markets should have a focus on cost control and cash generation.

Answer

Using relative market share measured against the largest competitor, where a value of 1.0 is used as the cut off between large and small, means there is only one star or cow per market.

Answer

Business units identified as cash cows and, particularly, dogs should not be dismissed since if they are properly managed, they can provide a rich source of cash as they are run down

Answer

A different style of management should be applied to each division based on the BCG analysis.

Answer

Those businesses which are in faster growing sectors will require more capital to be invested and may not generate cash as efficiently from profits

Question 10

All the measures below are appropriate for a cash cow EXCEPT

Accepted Answer

Research and Development spend

Answer

Return on investments (ROI)

Answer

Net operating cashflow

Answer

Gross or operating margin

Question 11

All measures below are appropriate for a star EXCEPT

Accepted Answer

Cash flow

Answer

Brand strength

Answer

Growth of profit

Answer

Relative market share

Answer

ROI or RI

Question 12

The following are weaknesses of the BCG EXCEPT

Accepted Answer

The performance management systems and metrics used by the divisions can be adjusted to reflect the findings of the BCG analysis

Answer

It may also be difficult to distinguish the sectors from each other

Answer

Different products with each business unit may not fit the unit’s classification

Answer

The model also fails to consider the links between the business units, for example, where the brand and products developed at one business unit might have a valuable effect on the perception (by association) of another unit's products.

Question 13

The following are limitations of the BCG matrix EXCEPT

Accepted Answer

The matrix assumes that each SBU or product/service is dependent, and can lead organizations to take advantage of potential synergies.

Answer

The matrix ignores many other factors that contribute towards the important determinants of profitability

Answer

The focus upon high market growth can lead to the profit potential of declining markets being ignored.

Answer

There can be practical difficulties in determining what exactly ‘high’ and ‘low’ (growth and share) can mean in a particular situation.

Answer

The use of the matrix is best suited to SBUs as opposed to products, or to broad markets (which might comprise many market segments).

Question 14

What does Star symbolize in BCG matrix?

Accepted Answer

Growth

Answer

Maturity

Answer

Decline

Answer

Introduction

Question 15

Which statement about PEST Analysis below is incorrect?

Accepted Answer

PEST analysis can be used to identify the organizations strengths and weaknesses

Answer

PEST analysis can be used to set targets appropriate for the environment

Answer

PEST analysis can be used to identify risks and uncertainties by monitoring the most important exogenous variables

Answer

PEST analysis can help identify critical success factors (CSFs) and key performance indicators (KPIs).

Question 16

Based solely on the attached image, which measure below is not suitable for NIKE?

Accepted Answer

The movement of sales in relation to taxation levels

Answer

Levels of pollution at NIKE's factories

Answer

Number of legal cases and/or value of fines

Answer

Cost of debt

Answer

Number and value of recalls

Question 17

Based solely on the attached image, which measure below is not suitable for NIKE?

Accepted Answer

Increases in sales

Answer

Number of stable economies in which NIKE has a presence

Answer

Number of Fast-growing nations in which NIKE has a presence

Answer

Level of economic growth or decline against the level of sales volume and revenue.

Question 18

Based solely on the attached image, which measure below in not suitable for NIKE?

Accepted Answer

Fines paid by NIKE

Answer

Margins (gross or operating before tax)

Answer

Percentage of the production business still viewed as "sweatshops"

Answer

Percentage of the persons getting into fitness who choses NIKE's products

Answer

Brand loyalty levels

Question 19

Based solely on the attached image, which measure below is not suitable for NIKE?

Accepted Answer

Using the latest technology

Answer

Improvements in margins

Answer

Percentage of revenue from new products

Answer

Customer satisfaction and retention levels

Answer

Research and development spending

Question 20

A strategy of differentiation is likely to involve each of the following EXCEPT?

Accepted Answer

Offering a standard product

Answer

Superior product quality

Answer

Clear branding

Answer

Charging a premium price

Question 21

Which of these factors is most likely to be a feature of a business with a successful cost leadership strategy?

Accepted Answer

Significant economies of scale

Answer

Portfolio of premium brands

Answer

Low levels of productivity compared with the competition

Answer

Production located in high labour cost countries

Question 22

All of the following are key sources of cost-efficiency EXCEPT?

Accepted Answer

Brand awareness

Answer

Economies of scale

Answer

Product and process deign

Answer

Input costs

Question 23

Which of the following forces is commonly reduced through the use of a loyalty program?

Accepted Answer

Buyer power

Answer

Rivalry among existing competitors

Answer

Threat of new entrants

Answer

Supplier power

Question 24

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because:

Accepted Answer

Entering the aircraft manufacturing industry requires huge capital investments.

Answer

Entering the aircraft manufacturing industry means violating government policies

Answer

There is no credible threat of retaliation from the incumbents

Answer

There is expected to be a huge return on investment within this industry

Question 25

The economic environment in Beeland, is characterised by growth as the populace of Beeland becomes wealthier. SELECT the BEST metric from the options below that would measure this for a company

Accepted Answer

Measure of competitor activity and market share growth

Answer

Average price per unit

Answer

Margin of safety

Answer

ROCE

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