Deck 1: The Strategy Experience Phase 1

Question 1

Which THREE countries/regions offer the most important growth opportunities for WRSX in the next decade?
a. USA
b. Western Europe
c. Latin America
d. India
e. Australasia
f. North Africa
g. Sub Saharan Africa
h. China

Answer 1

d) India
f) North Africa
h) China

Question 2

Which TWO of the following changes are most likely to have an adverse impact on WRSX's opportunities in the external environment?
a. Continuing low interest rates
b. Rising oil prices
c. Growth in the Asia-Pacific region
d. A downturn in the US economy
e. The fraud scandal at WSRX
f. Fluctuating exchange rates

Answer 2

b) Rising oil prices
d) A downturn in the US economy

Question 3

WRSX has a good reputation in which THREE of the following sectors?
a. Automotive and transport
b. Banking and financial services
c. Health and pharmaceuticals
d. Construction
e. Telecommunications
f. Food, drink and tobacco

Answer 3

a) Automotive and transport
c) Health and pharmaceuticals
e) Telecommunications

Question 4

WSRX has a better than average score on which of the following NFPIs?
a. Leadership capability and Client attraction & retention
b. Management of growth and Management of risk
c. Management of growth only
d. Client attraction & retention only
e. Management of Risk and Leadership capability

Question 5

Which TWO of the following are the most important Corporate Social Responsibility (CSR) issues for WSRX to deal with?
a. Finding new growth markets to enter
b. Reducing the carbon footprint of the business
c. Improving service levels to clients
d. Cutting costs
e. Improving governance and ethical standards.

Question 6

Which TWO of the following are reasons for brands becoming more important for fmcgs?
a. Innovative and differentiated products command a price premium
b. Price competition and low cost are frequently a source of competitive advantage
c. Consumers in emerging markets are increasingly aware of, and interested in, brands
d. There is a shift towards 'Generation Y' values

Question 7

WSRX's initial current ratio is which of the following?
a. More than 1 and therefore healthy
b. More than 1 and therefore a cause for concern
c. Less than 1 and therefore healthy
d. Less than 1 and therefore a cause for concern.

Question 8

Compared to the industry average, WSRX's initial financial position shows which of the following?
a. Better than average ROCE and higher gearing
b. Better than average ROCE and lower gearing
c. Worse than average ROCE and higher gearing
d. Worse than average ROCE and lower gearing.

Question 9

A 'value based' compensation system for advertising agencies involves which of the following?
a. Paying only for billable hours spent on creating advertising for the client
b. Paying a set % of the total value of the media spend on the advertising
c. Paying performance related fees for advertising that adds to the clients profits in measurable terms
d. Paying a set % of the total brand revenue earned by the brand in that year.