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Strategic Drift (Business A2)

Total questions: 15

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

Fill in the blank. Strategic Drift occurs when the strategy of the business no longer matches the ___________ in which it operates

a)

Environment

b)

Five Forces

c)

Stakeholders

d)

Population

2.

Select all the answers below for the reasons for Strategic Drift.

a)

Failure to identify changes that occurring

b)

Failure to react quickly enough

c)

Management deny there is a problem

d)

Complacency has set in

3.

Which of the four phases of the Strategic Drift graph are missing: Incremental Change; Strategic Drift; Transformational Change or Demise

a)

Flux

b)

Expansion

c)

Recession

d)

Recovery

4.

What phase of the Strategic Drift graph is characterised by management indecision and a significant gap between what the market expects and what a business is delivering?

a)

Incremental Change

b)

Strategic Drift

c)

Flux

d)

Transformational Change or Demise

5.

What phase of the Strategic Drift graph is where there is little significant change between the external environment and the business?

a)

Incremental Change

b)

Strategic Drift

c)

Flux

d)

Transformational Change or Demise

6.

What phase of the Strategic Drift graph is where things are starting to drift, the rate of change in the external environment is accelerating, and incremental changes are not enough?

a)

Incremental Changes

b)

Strategic Drift

c)

Flux

d)

Transformational Change or Demise

7.

What phase of the Strategic Drift graph is where the business radically changes or the business fails?

a)

Incremental Change

b)

Strategic Drift

c)

Flux

d)

Transformational Change or Demise

e)

Recession

8.

Hiring a new CEO to implement a significant change programme is an example of which phase of the Strategic Drift graph?

a)

Incremental Change

b)

Strategic Drift

c)

Flux

d)

Transformational Change

9.

In the Blockbuster-Netflix case study, what was the most important external change that Blockbuster failed to follow?

a)

Political

b)

Economic

c)

Technological

d)

Legal

e)

Environmental

10.

What was Blockbuster?

a)

Video rental company

b)

News company

c)

Technology company

d)

Video game company

11.

True or False. Complacency setting in is a possible reason for Strategic Drift

a)

True

b)

False

12.

True or False. Nokia is an example of a company that suffered demise due to Strategic Drift.

a)

True

b)

False

13.

Which external change was the most important in MySpace's demise?

a)

Political

b)

Economic

c)

Social

d)

Environmental

14.

Which external change was the most important in Kodak's demise?

a)

Political

b)

Economic

c)

Technological

d)

Legal

e)

Environmental

15.

True or False. Strategic Drift occurs when the strategy of the business no longer matches the environment in which it operates

a)

True

b)

False