Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
|
|
|
1.
|
If a
business is blinkered, technology shy, and 'impoverished', what does this signal? a. | A weak strategic
plan | b. | A planning
gap | c. | A lack of
innovation and vision | d. | Weak strategic leadership | | |
|
|
|
2.
|
Altman (1968) devised which score which predicts potential corporation
failure? a. | The
H-score | b. | The F-score | c. | The
Z-score | d. | The W-score | | |
|
|
|
3.
|
Divestment is what kind of strategy? a. | An
asset-reduction strategy | b. | A weakness-reduction strategy | c. | A
product-reduction strategy | d. | A cost-reduction strategy | | |
|
|
|
4.
|
When
a company is experiencing an economic recession this is a good time to do what? a. | Reduce costs and
assets | b. | Refocus | c. | Simplify | d. | Invest | | |
|
|
|
5.
|
Turnaround strategies involve changes at what level of strategy? a. | Corporate | b. | Functional | c. | Competitive | d. | All levels | | |
|
|
|
6.
|
Acquisitions often fail to deliver the successes that were predicted prior to
acquisition. What is the main reason for this failure? a. | Premium
price | b. | Poor strategic leadership | c. | Goodwill | d. | Synergy | | |
|
|
|
7.
|
To
turn the problems of the Burton Group around what strategy was applied? a. | Turnaround | b. | Diversification and divestment | c. | Liquidation | d. | Acquisition | | |
|
|
|
8.
|
Sustained survival implies: a. | that a turnaround is achieved but there is little further
growth | b. | that a turnaround is achieved and there is potential for
further growth | c. | that a turnaround is achieved and there is a clear opportunity
to employ a new growth strategy | d. | that a turnaround is achieved and it is appropriate to
diversify soon | | |
|
|
|
9.
|
Which
of these is not an issue in selecting a business as a divestment candidate? a. | Current market
position | b. | Product life-cycle | c. | Alternate uses
for resources | d. | The size of the business | | |
|
|
|
10.
|
Which
of these is not noted by Harrigan (1980) as an indicator of the appropriateness of a strategy during
decline? a. | A focus on cost
leadership | b. | Ability to target market segments
effectively | c. | The nature of decline | d. | Exit
costs | | |
|