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Updated: Jul 19, 2026
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| Section | Objectives |
|---|---|
| Strategy Formulation | - Strategic analysis of external environment
|
| Strategic Choices | - Corporate strategy
|
| Strategy Implementation | - Change management
|
1. HH is an outdoor theatre which is based in the capital city of country N.
Tickets for shows can be booked at the ticket office or online. HH has identified the following critical success factors (CSFs):
An excellent, online ticket booking system
Customer satisfaction
Which of the following would be suitable key performance indicators (KPIs) for HH? (Choose all that apply.)
A) Number of customer complaints.
B) Customer show ratings, scored out of ten.
C) Profit from sales of snacks and drinks.
D) Employee turnover.
E) Percentage of ticket bookings aborted before completion.
F) Number of returning customers each year.
2. STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)
A) Facilitation
B) Liquidation
C) Retrenchment
D) Divestment
E) Turnaround
3. BBB is a manufacturer that has been criticized in the financial press because it does not have a policy for sustainability.
Which THREE of the following elements would be crucial to BBB successfully embedding sustainability into its activities? (Choose three.)
A) BBB's Board should make a commitment to sustainability.
B) BBB should investigate the costs and benefits of establishing a sustainability department.
C) BBB should employ a new public relations consultancy.
D) BBB should spend at least 0.1% of its Net Profit on sustainability projects.
E) BBB should give all its staff training in sustainability.
F) BBB should include sustainability targets in performance appraisal.
4. SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?
A) Number of days of training for car park attendants.
B) Reduction in complaints from customers.
C) Easy access to car parking spaces.
D) Speed of processing the payment for parking charges.
5. A direct external change trigger is:
A) A general increase in the use of the Internet by society.
B) A powerful competitor forcing an organization to cut its prices.
C) An economic recession in an organization's home country.
D) The introduction of new environmental protection policies by the government.
Solutions:
| Question # 1 Answer: A,E | Question # 2 Answer: D | Question # 3 Answer: A,C,E | Question # 4 Answer: C | Question # 5 Answer: D |
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