Question 1

Which organisational structure most clearly reflects the way WRSX manages its businesses?
a) Functional structure.
b) Multi-divisional structure.
c) Matrix Structure.
d) Transnational structure.
e) Project based structure.

b) Multi-divisional structure.

Accepted Answer

WRSX manages multiple businesses across different industries, which suggests a need for separate divisions with their own functional structures. This would allow for a clearer focus on each business unit's specific needs and requirements. The multi-divisional structure is the best fit for WRSX's approach to managing its businesses.

Question 2

Which TWO of the following are relevant criteria for assessing whether a strategy is feasible according to the SAFe criteria?
a) Stakeholders will be satisfied with the strategy.
b) The strategy can be financed.
c) The strategy addresses the key opportunities and constraints which the organisation faces.
d) The required resources can be obtained and integrated.

Accepted Answer

The strategy can be financed and the required resources can be obtained and integrated are relevant criteria for assessing whether a strategy is feasible according to the SAFe criteria.

Question 3

Given that WRSX has been built up from a series of mergers and acquisitions and has multiple businesses and has several partners, which of the following approaches to managing change is most likely to be effective?
a) An approach to change which is built on collaboration and participation.
b) An approach to change which is built on edict and coercion.
c) An approach to change which is directed from the centre and imposed on subsidiaries.
d) WRSX is doing well in all of its businesses so there is no need for significant change.

Accepted Answer

Given the complexity of WRSX's structure and the multiple partners involved, an approach to change that is built on collaboration and participation is the most likely to be effective. This approach will encourage participation from all stakeholders, promote ownership of solutions and facilitate smooth implementation of changes. An approach built on edict and coercion is unlikely to be effective, as it may lead to resentment and resistance from stakeholders. An approach directed from the centre and imposed on subsidiaries may be useful for some changes, but is unlikely to be effective for complex changes that require buy-in from multiple stakeholders. The fourth option is not valid as it assumes that change is not necessary.

Question 4

WRSX is considering acquiring an advertising agency on the west coast of the USA. Which TWO of the following statements about this potential acquisition are true?
a) Access to new knowledge or skills is a primary objective for acquiring 'Mind2Mind' - a specialist agency, successful in promoting high tech brands.
b) WRSX should have increased their offer for Gumtree to match the higher offer of a rival since the value placed on the company following due diligence was an under-estimate.
c) The advantage of acquiring a west coast agency is that better service levels can be provided by a local supplier to west coast businesses rather than serving clients from the New York office.
d) Setting up a wholly owned subsidiary on the west coast from scratch is a preferable option to making an acquisition because it is cheaper and WRSX has the required skills.

Accepted Answer

A is true because WRSX is considering acquiring a specialist agency, Mind2Mind, which suggests that they are seeking new knowledge or skills.
C is true because having a local supplier on the west coast can provide better service levels to west coast businesses. However, there is no mention of Gumtree or setting up a wholly owned subsidiary from scratch, so B and D are not true.

Question 5

Which TWO of the following are potential dangers of using a formal strategic planning system at WRSX?
a) It may help to co-ordinate business level strategies.
b) It may be too top down and people lose a sense of ownership of the strategy.
c) It may dampen innovation and creative thinking.
d) It takes account of the realities of political and cultural influences on strategy.

Accepted Answer

A formal strategic planning system may lead to a top-down approach, where employees do not feel ownership of the strategy, and it may also stifle innovation and creative thinking. However, it may still help to coordinate business-level strategies and take into account cultural and political influences on strategy.

Question 6

Which TWO of the following are methods used for assessing the profitability of strategic options?
a) Forecasting the return on capital employed.
b) Estimating the impact of the investment on the current ratio.
c) Estimating the impact of the investment on the gearing ratio.
d) Forecasting the value of the future returns using the discounted cash flow technique.

Accepted Answer

Forecasting the return on capital employed and forecasting the value of future returns using the discounted cash flow technique are commonly used methods for assessing the profitability of strategic options. Estimating the impact on the current ratio and gearing ratio are important factors to consider, but they do not directly assess profitability.

Question 7

Which of the following statements about the practice of strategic management is correct?
a) Strategy is the exclusive concern of the CEO and top management team and typically no one else is involved in strategic decisions.
b) Strategic planners may have a formal responsibility for co-ordinating the strategy making process and play a crucial role in analysis and disseminating thinking on strategy within an organisation.
c) External strategy consultants typically have little access to the CEO but a high level of responsibility for implementing strategic change.
d) Strategy workshops are most useful when the urgency of change is high.

Accepted Answer

Strategic management is a collaborative process that involves a range of people within and outside an organization. While the CEO and top management team are usually responsible for setting the overall direction of the organization, strategic planners have a formal responsibility for co-ordinating the strategy making process, and they play a crucial role in analysis and disseminating thinking on strategy within an organization. External strategy consultants may be involved in developing and implementing strategies, but they typically have limited access to the CEO. Strategy workshops can be useful in a range of situations, not just when the urgency of change is high.

Question 8

WRSX is considering pitching for contracts in the field of 'social marketing'. Which THREE of the following statements are correct?
a) Social marketing is concerned with the use of marketing principles to influence human behaviour in order to improve health and safety.
b) Working on Government contracts is unlikely to add to the agency's profits or reputation.
c) Accepting contracts such as the 'Campaign to Reduce Obesity' will cause a strategic dilemma for WRSX as it has existing clients in the fast food industry who oppose the Government campaign.
d) Accepting social marketing contracts can enhance the agency's creative reputation and improve its social responsibility rating.

Accepted Answer

A) This statement correctly defines social marketing as using marketing principles to influence human behavior to improve health and safety.
B) This statement is not necessarily true and is not directly related to social marketing.
C) This statement raises a valid concern about a potential conflict of interest for WRSX if they were to pursue contracts in the field of social marketing, such as the 'Campaign to Reduce Obesity', which would conflict with the interests of their existing clients in the fast food industry.
D) This statement is true as accepting social marketing contracts can enhance an agency's creative reputation and improve its social responsibility rating.

Question 9

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Accepted Answer

The Answer of Persuading others of both the need for is...

Question 10

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Accepted Answer

The Answer of A structure that divides responsibilities according to is...

Deck 3: The Strategy Experience Phase 3