DEMO QUESTIONS

Q1:

What are the disadvantages of a divisional organisational structure? Select ALL that apply.

A: Knowledge may not be shored between different divisions

B: Divisions may end up competing with each other

C: Potential duplication of activities may occur

D: There may be a lack of specialisation on a particular product

E: It con be difficult to undertake expansion in the form of new divisions

F: It is difficult to develop managers due to a lack of responsibility in their roles

Correct Answer: A, B, C

Q2:

An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis. It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal. What stage of its strategic analysis has the organisation failed to carry out?

A: An external analysis of the business's environment

B: Identification of strategic options

C: Identification of functional policies

D: Making strategic choices

Correct Answer: A

Q3:

A business manufacturing running trainers is considering exporting to a fast growing Asian market. Using Porter’s Five Forces, which of the following statements is most likely to be incorrect?

A: Supplier power is likely to be high

B: Competitive rivalry is likely to be high

C: New entrants are likely to be low

D: Substitutes are likely to be high

Correct Answer: A

Q4:

An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis. It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal. What stage of its strategic analysis has the organisation failed to carry out?

A: An external analysis of the business's environment

B: Identification of strategic options

C: Identification of functional policies

D: Making strategic choices

Correct Answer: A

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