Question 1

In the public sector, organisations must make decisions about how units should provide best- value services. What is the equivalent to this type of strategy in a commercial organisation?
A) Strategic- business strategy
B) Corporate- level strategy
C) Operational- level strategy
D) Business- level strategy

Accepted Answer

In a commercial organization, business-level strategy focuses on how to compete successfully in particular markets, similar to how public sector organizations aim to provide best-value services.

Question 2

Which type of strategy is most likely to relate to the expectations of the shareholders and the stock market?
A) Corporate- level
B) Strategic- business- level
C) Business- level
D) Operational

Accepted Answer

Corporate-level strategy is concerned with the overall scope and direction of a corporation and how value is added to the different business units. It often involves decisions that affect the entire organization and is closely related to shareholder expectations and stock market performance.

Question 3

Which of the elements of the Exploring Corporate Strategy model involves understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development?
A) Strategic choices
B) Strategy in action
C) Strategic position
D) Strategic planning

Accepted Answer

Strategic choices involve understanding the underlying bases for future strategy and the options for developing strategy in terms of directions and methods.

Question 4

Which term is used for the overall purpose of the organisation?
A) Goal
B) Vision
C) Mission
D) Strategic capability

Accepted Answer

The term "Mission" is used to describe the overall purpose of an organization, outlining its core purpose and focus.

Question 5

Which of the following is not one of the strategy lenses that offer different ways of looking at the issues of strategy development for an organisation?
A) Inspiration
B) Ideas
C) Discourse
D) Design
E) Experience

Accepted Answer

"Inspiration" is not one of the recognized strategy lenses. The strategy lenses typically include design, experience, ideas, and discourse.

Question 6

What do you understand by the term 'strategic drift'?
A) Progressive failure of strategies to address the strategic position of the organisation
B) Where an intended strategy is unrealised
C) Emergent approach to strategy
D) Sudden failure of strategies to address the strategic position of the organisation

Accepted Answer

Strategic drift refers to the gradual failure of an organization's strategies to keep up with the changing environment, leading to a misalignment with the strategic position over time.

Question 7

Which one of the following is not a major concern of strategic management?
A) Strategic options
B) The marketing mix
C) Organisational resources and competencies
D) Mission and objectives
E) The external environment

Accepted Answer

The marketing mix is primarily a tactical tool used in marketing management, not a major concern of strategic management, which focuses on broader issues like strategic options, resources, mission, and the external environment.

Question 8

Which two statements accurately relate to the process approach to strategy, led by Mintzberg and Pettigrew?
A) Managers make decisions based on organisational politics and history as much as on economic bases.
B) Strategy must be based on accurately identifying a hierarchy of aims and goals.
C) Strategy formulation and implementation is messy.
D) Strategy is largely based on discourse - the way in which the organisation is discussed.

Accepted Answer

The process approach to strategy emphasizes that decision-making is influenced by organizational politics and history (A) and acknowledges that strategy formulation and implementation can be complex and non-linear (C).

Question 9

Which three of the following elements make up the Exploring Corporate Strategy model?
A) Strategic planning
B) Strategic position
C) Strategy in action
D) Strategic choices

Accepted Answer

The Exploring Corporate Strategy model consists of three elements: strategic position, strategy in action, and strategic choices.

Question 10

In the private sector, strategy making is dominated by pursuit of which of the following objectives?
A) Corporate social responsibility
B) New product development
C) Market share
D) Profits

Accepted Answer

In the private sector, the primary objective of strategy making is typically the pursuit of profits, as businesses aim to maximize shareholder value and ensure financial sustainability.

Question 11

Which of the following do/es not help explain why strategy implementation is often difficult to achieve in the way intended?
A) The problems associated with marketing new products
B) The complex range of changes involved
C) Changes in the external environment
D) The difficulties of planning for unintended outcomes
E) Poor understanding of the strategy by those implementing it

Accepted Answer

Marketing new products is typically a tactical issue rather than a strategic implementation challenge, whereas the other options relate directly to strategic implementation difficulties.

Question 12

Which of the following would not be classed as a 'not- for- profit' organisation?
A) Save the Children
B) The Advertising Standards Authority
C) Amnesty International
D) British Airways

Accepted Answer

British Airways is a commercial airline company that operates for profit, unlike the other organizations listed which are non-profit entities.

Question 13

Which of the following is a definition of strategic management?
A) Strategic management refers to those aspects of management that are the responsibility of an organisation's most senior managers.
B) Strategic management refers to those activities and processes through which an organisation determines its mission and/or objectives and the plans, policies and actions to achieve them.
C) Strategic management refers to an approach to business planning based on the objectives of the various stakeholder groups affected by the organisation's activities.
D) Strategic management is concerned with the annual planning processes by which an organisation determines its annual targets and budget allocations.

Accepted Answer

Strategic management involves determining an organization's mission, objectives, and the plans, policies, and actions to achieve them.

Question 14

Why is it important that objectives are measurable?
A) Reward systems depend on meeting targets so it is vital that measurements are taken so that performance- related pay and bonuses can be calculated.
B) Strategy is best evaluated using quantitative data so measurements must be taken.
C) Controlling strategy implementation and evaluating the outcomes of a strategy depend on being able to measure organisational performance against targets.
D) All of the key measures of business performance are financial and so setting financial targets is vital.

Accepted Answer

Measurable objectives allow organizations to assess performance against targets, facilitating effective strategy implementation and evaluation.

Question 15

Which of the following statements best explains the term 'strategic method' when applied to strategic choice?
A) 'Strategic method' refers to the decision making process used to select one option from the available choices.
B) 'Strategic method' refers to the particular way the direction will be pursued, e.g. merger, strategic alliance, organic growth or joint venture.
C) 'Strategic method' refers to the change management methods by which an organisation implements its chosen strategy.
D) 'Strategic method' refers to the internal processes used to generate strategic options, e.g. brainstorming, studying competitors, etc.

Accepted Answer

'Strategic method' refers to the particular way the direction will be pursued, such as through a merger, strategic alliance, organic growth, or joint venture.

Question 16

How do an organisation's strategic objectives relate to its mission?
A) Strategic objectives break the mission down into those parts that relate to specific functional areas of the business.
B) Strategic objectives are based on the mission but each one relates to a specific SBU of the organisation.
C) Strategic objectives do not usually relate to the mission but are the basis for an organisation's strategic plan.
D) Strategic objectives provide a more precise or quantifiable basis for developing strategy than the general mission statement.

Accepted Answer

Strategic objectives provide specific, measurable targets that help translate the broader mission into actionable strategies.

Question 17

What do you understand by the term 'strategic direction'?
A) 'Strategic direction' refers to the underlying intent of a strategy, e.g. growth, consolidation, market entry or diversification.
B) 'Strategic direction' refers to the leadership offered by the senior management team of an organisation.
C) 'Strategic direction' refers to the general direction in which an industry as a whole is moving.
D) 'Strategic direction' refers to the direction the organisation would like to move in the next five years.

Accepted Answer

Strategic direction refers to the underlying intent of a strategy, such as growth, consolidation, market entry, or diversification, which guides the organization's long-term goals and actions.

Question 18

Which of the following are not usually key stakeholder groups in the not- for- profit sector?
A) Shareholders
B) Recipients of the service
C) Funding providers
D) Government regulators

Accepted Answer

Shareholders are typically associated with for-profit organizations, as they own shares of the company. Not-for-profit organizations do not have shareholders.

Question 19

Which of the following is not one of the types of strategy identified in the hierarchy of strategies?
A) Business level strategy
B) Market level strategy
C) Corporate level strategy
D) Operational level strategy

Accepted Answer

Market level strategy is not typically recognized as a distinct level in the hierarchy of strategies, which usually includes corporate, business, and operational levels.

Question 20

Which of the following is not a typical characteristic of strategy making in the not- for- profit sector?
A) Consensus building
B) Values and ideology
C) Meeting expectations of shareholders
D) Multiple objectives

Accepted Answer

Not-for-profit organizations do not have shareholders, so meeting shareholder expectations is not a characteristic of their strategy making.

Quiz 1: Introducing Strategy

In the public sector, organisations must make decisions about how units should provide best- value services. What is the equivalent to this type of strategy in a commercial organisation?

Which type of strategy is most likely to relate to the expectations of the shareholders and the stock market?

Which of the elements of the Exploring Corporate Strategy model involves understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development?

Which term is used for the overall purpose of the organisation?

Which of the following is not one of the strategy lenses that offer different ways of looking at the issues of strategy development for an organisation?

What do you understand by the term 'strategic drift'?

Which one of the following is not a major concern of strategic management?

Which two statements accurately relate to the process approach to strategy, led by Mintzberg and Pettigrew?

Which three of the following elements make up the Exploring Corporate Strategy model?

In the private sector, strategy making is dominated by pursuit of which of the following objectives?

Which of the following do/es not help explain why strategy implementation is often difficult to achieve in the way intended?

Which of the following would not be classed as a 'not- for- profit' organisation?

Which of the following is a definition of strategic management?

Why is it important that objectives are measurable?

Which of the following statements best explains the term 'strategic method' when applied to strategic choice?

How do an organisation's strategic objectives relate to its mission?

What do you understand by the term 'strategic direction'?

Which of the following are not usually key stakeholder groups in the not- for- profit sector?

Which of the following is not one of the types of strategy identified in the hierarchy of strategies?

Which of the following is not a typical characteristic of strategy making in the not- for- profit sector?