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Q1: A firm outsources many of its value chain activities. Compared to a firm that does everything in-house this is likely to incur

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Answer: Higher transaction costs, lower control

Q2: When a firm promises more than it can actually deliver to win a contract, this is known as

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Answer: Adverse selection

Q3: Which of the following outcomes is a potential benefit of outsourcing

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Answer: Higher flexibility

Q4: A joint venture can be defined as

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Answer: Two firms come together to form a third, legally separate firm

Q5: Knowledge that exists in an organization but is difficult to write down and codify is known as

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Answer: Tacit knowledge

Q6: Tacit knowledge is seen as important feature of competitive advantage in which approach to strategy

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Answer: Resource-based view of the firm

Q7: The Resource-based view of the firm could also be described as

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Answer: The inside-out approach

Q8: Firms that are able to build relational capital are more able to

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Answer: Transfer knowledge to their alliance partners

Q9: An organization has competitive advantage in the markets in which it competes but its culture is rather inwards looking and complacent. In this situation it is unlikely that competitive advantage will be

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Answer: Sustainable

Q10: The VIRUS acronym in relation to strategic resources stands for

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Answer: Value, Inimitable, Rare, Un-Substitutable

Q11: If a resource is ‘inimitable’ a competitor finds it

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Answer: Difficult to copy

Q12: The things that an organization does with its strategic assets are known as

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Answer: Competences

Q13: Which type of asset is rarely strategic

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Answer: Financial assets

Q14: Which type of assets can be considered as the most heterogeneous

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Answer: Human

Q15: When there is a fit between the goals of the organization and the goals of individuals, this is known as

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Answer: Goal congruence

Q16: The shape or format of reporting and decision making relationships can be defined as the organizational

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Answer: Hierarchy

Q17: The main components of an organization’s architecture are structural hierarchy, values and belief systems, contracts and relationships and (two more)

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Answer: Control systems and information infrastructure

Q18: A ‘vertical architecture’ is one which

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Answer: Extends beyond the boundaries of legal ownership

Q19: Organizational structures and systems can be judged using five dimensions (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and

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Answer: Economic Incentives

Q20: Employees who work in an autonomous fashion are

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Answer: Given freedom to make decisions

Q21: Bureaucracy is sometimes seen as a negative thing but it has some benefits for organizations. Which of the following is NOT a benefit of bureaucracy

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Answer: It can increase organizational flexibility

Q22: Successful business relationships tend to

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Answer: Combine relational contracts – to build trust in the long term – with transactional contracts to cover specific situations

Q23: Goffee and Jones use two variables to classify organizational cultures. These are

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Answer: Sociability and Solidarity

Q24: A holding company is

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Answer: A decentralized organization with a small head office that organizes finance for the subsidiaries

Q25: A firm has a functional director for six areas and an area director for three functions. There, staff at each area/function will be reporting to 2 bosses. This firm has which type of structure

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Answer: Matrix structure

Q26: An organization structure that is in the main a functional or divisional structure but also includes project teams to deal with specific issues is called

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Answer: A hybrid structure

Q27: An organization that divides its structure into two main parts – one dealing with product groups and one dealing with customer segments is called

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Answer: A front-back structure

Q28: The essential question that a corporate parent needs to ask is

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Answer: Does it add value to its individual businesses

Q29: A corporate parent can offer an individual business a number of ‘propositions’. These are build propositions, stretch propositions, link propositions, select propositions and

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Answer: Leverage propositions

Q30: The parenting style ‘financial control’ will tend to be most suitable in which type of portfolio

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Answer: Stable businesses with low investment needs

Q31: Which type of corporate parenting style has the closest relationship with its individual businesses

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Answer: Strategic planning

Q32: What is the main reason why organizations enter alliances

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Answer: To obtain synergies between other organizations’ resources and their own

Q33: Which of the following is NOT an important element to look for when selecting an alliance partner

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Answer: Very similar culture and resources

Q34: It was recognized in the 1990s that physical assets are not the only thing that needs to be included in the valuation of a firm. In Europe, firms also included a supplement detailing the

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Answer: Intellectual capital

Q35: A graph showing a rise in demand over a number of years can be described as

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Answer: Information

Q36: Something that you learn to do by practicing rather than from reading a manual is known as

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Answer: Embodied knowledge

Q37: Knowledge that is known to a specific set of people who understand what particular references mean, whereas people outside of that group don’t know what they mean is known as

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Answer: Symbolic knowledge

Q38: Which of the following attributes is NOT seen as being necessary for an organization to become a ‘learning organization’

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Answer: Cultural diversity

Q39: One of the traps into which organizations can fall with respect to organizational learning is that they misread the reasons for success or failure. This trap is known as

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Answer: Superstitious learning

Q40: Knowledge management is concerned with the emergence, storage and___of knowledge

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Answer: Transfer

Q41: One of the main problems with explicit knowledge is that

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Answer: It is easier to obtain it

Q42: When trying to judge whether a firm’s strategies ‘feel’ right, the assessment is likely to be

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Answer: Qualitative

Q43: In assessing an organization’s success or failure, there are three stages; working out what to observe and measure, establishing the standards against which to measure and

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Answer: Drawing conclusions

Q44: Which of the following is the least useful measurement of performance

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Answer: Top management’s targets

Q45: From a strategist’s point of view, the most appropriate measure of profit is

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Answer: Before interest and tax

Q46: A raw number such as profit is not all that useful on its own. It is more useful to use

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Answer: A ratio

Q47: The number of months that a business has sufficient cash in the bank to cover outgoings is called

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Answer: Cash burn

Q48: The financial terms ‘gearing’ or ‘leverage’ are also known as which ratio

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Answer: Debt/equity ratio

Q49: For clues as to why a firm is performing badly, what type of measure would be useful

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Answer: Operational performance measures

Q50: If a firm’s debtors are rising it could be an indication of

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Answer: Weak financial management

Q51: If we measure the number of new products that Sony has launched in the last three years, this is an

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Answer: Output measure of innovation

Q52: When formulating strategic options, it is a valid option to ‘do nothing’. However, this can lead to

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Answer: A competency trap

Q53: The future can be broadly divided into four categories; infinite option future, limited-option future, known future and

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Answer: Multi-option future

Q54: A hospital manager needs to consider how to organize resources to cope with elderly patients. The manager is dealing with

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Answer: A known future

Q55: The government has to plan for the re-sourcing of the health service to deal with the obesity problem. The government is dealing with

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Answer: A limited option future

Q56: Which of the following strategies could be considered a ‘breakthrough’ strategy

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Answer: Ryanair’s ‘no-frills’ service

Q57: A ‘feint’ strategy is where

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Answer: A firm misleads competitors about its future intentions

Q58: The slowest way to grow a business is likely to be through

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Answer: Internal development

Q59: In the context of strategic methods, ‘learning risk’ can be defined as

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Answer: Failing to bring in new ideas from outside the firm

Q60: The merger between AOL and Time Warner was intended to take advantage of

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Answer: Industry convergence

Q61: A firm that has become too large has decided to set up part of the organization as an independent company. This is known as

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Answer: Float-off

Q62: Which of the following would NOT normally be an advisable strategy in the introductory stage of the industry life cycle

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Answer: Aiming to maximize efficiency and lower costs

Q63: Which of the following would NOT normally be an advisable strategy in a progressive mature industry

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Answer: Differentiating on superior product technology

Q64: Which of the following industries would be classified as a ‘creative’ industry

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Answer: Pharmaceuticals

Q65: ‘Dominant design’ can be defined as

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Answer: The design that is accepted and expected by customers and producers

Q66: At the introductory stage of an industry, products and services are likely to be differentiated on

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Answer: Functionality

Q67: An industry which can be described as ‘progressive’ is characterized by

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Answer: Incremental product development and efficiency improvement

Q68: An industry in which large investments are made in products where return on investment is very difficult to predict is known as which model

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Answer: The creative model

Q69: In a mature industry experiencing intermediating change it means

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Answer: The industry’s interaction with customers and suppliers changes

Q70: Firms confronting turbulence must chose from three strategic postures; shaping the future, adapting to the future and

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Answer: Phased adoption of the new approach

Q71: Which of the following is a typical characteristic of a hypercompetitive industry

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Answer: The need to compete fiercely is embedded in the belief system of every firm in the industry

Q72: Which of the following is NOT a feature of a typical entrepreneur

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Answer: A natural talent for salesmanship

Q73: Which of the following is likely to be the least problematic issue for a small firm

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Answer: The principal/agent problem

Q74: The five stages of company growth are existence, survival, success, take-off and

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Answer: Maturity

Q75: There are a number of general options that small firms could follow. These are targeting a niche market, achieving distinctiveness of resources, internationalizing and

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Answer: Building relational capital

Q76: The public sector includes different types of organization but they all have one unifying factor. They are all

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Answer: Dependent on the state for their funds

Q77: The public sector confronts challenges relating to ‘managing upwards’. This would include

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Answer: Dealing with elected politicians that set policy frameworks

Q78: Which of the following is NOT a feature of the public sector

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Answer: Performance related rewards are common

Q79: The philosophy of ‘new public management’ is characterized by

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Answer: Market mechanisms and partnerships with the private sector

Q80: Which of the following is NOT a strategic issue for a typical not-for-profit organization

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Answer: Developing a broad portfolio of products and services

Q81: An organization that is set up to generate profits specifically in order to further a social objective is called

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Answer: A social enterprise

Q82: There are different magnitudes of strategic change. ‘Modular transformation’ can be defined as

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Answer: Radical change at the level of the business unit

Q83: Which of the following triggers for change is likely to be most easily accepted

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Answer: A decline in performance

Q84: Greenpeace instigated the reversal of Royal Dutch Shell’s decision to dispose of a redundant oil facility in the North Sea. This was an example of

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Answer: Moral legitimacy

Q85: On Eden and Ackermann’s (1998) Saliency/Interest grid, if a stakeholder is classified as low saliency and high interest, how should the organization respond

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Answer: The organization needs to be aware of them because, although the stakeholder has only limited directly influence on the outcome of the strategic proposal, their high interest may make them lobby more salient stakeholders to intervene

Q86: Greenpeace joined together with consumers to fight against the dumping of the Royal Dutch Shell oil platform. They formed a

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Answer: Coalition

Q87: When an individual exhibits ‘discarding’ behaviour in reaction to organizational change they

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Answer: Acknowledge that some of the old ways had flaws and accept that the new way needs to be adopted

Q88: The TROPICS test is used to assess whether a change should be implemented using a hard or soft approach. The ‘S’ stands for

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Answer: Source of Issue

Q89: Two types of activity that might be expected to occur close to the beginning of most successful change programmes are

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Answer: ‘Building a sense of need, urgency, and commitment’ and ‘Developing and communicating a shared vision of change’

Q90: A change agent can be defined as

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Answer: A person or group of people who take on the role of promoting change within an organization

Q91: Buchanan and Boddy suggest fifteen roles for a change agent which they have classified into five ‘clusters’. These are goals, roles, communication, negotiation and

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Answer: Managing up

Q92: Collins (2001) defines five levels of leader. ‘Level 5’ leadership can be described as

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Answer: Executive

Q93: Theorists have identified two main styles of leadership. These are transformational leadership and

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Answer: Transactional leadership

Q94: Which of the following contexts would most suit a transformational leader

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Answer: An organization that is in trouble

Q95: Which of the following is NOT regarded as good practice during a merger or acquisition

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Answer: Pitching the offer at a high level to frighten away potential counter-bidders

Q96: If a leader spends a lot of their time ensuring that staff acquire necessary knowledge and skills, their approach can be defined as

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Answer: The expertise approach

Q97: Value-based management is

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Answer: A structured system of targets to motivate people to enhance the organization’s value

Q98: The balanced scorecard approach is a framework for measuring performance based on four factors. These are ‘learning and growth’, ‘the customer perspective’, ‘the internal perspective’ and

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Answer: The key stakeholder perspective

Q99: The process of ‘due diligence’ involves

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Answer: Bidders for a firm investigating a firm’s operations and financial situation prior to potential acquisition.

Q100: The stages in a turnaround process are

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Answer: Realignment, retrenchment, recovery