Which of the following best describes the 'rational model' of strategy development?

At which level of strategy would decisions about acquisitions and diversification be made?

The main disadvantage of formal long-term planning is

'Bounded rationality' refers to:

According to Mintzberg, an 'emergent strategy' is:

A company introducing a new IT system to reduce payroll costs is applying which level of strategy?

Which approach is most appropriate for organizations in fast-changing industries?

The ‘Three Es’ (Economy, Efficiency, Effectiveness) model is primarily used in

Alpha Ltd operates in the electronics sector, which changes rapidly. Management spends months planning its strategy, but competitors release innovations sooner. What is Alpha’s main issue?

Beta Ltd is a small start-up. The owner reacts quickly to new market trends and modifies operations without formal plans. What approach is this?

Global Motors decides to exit Asia and focus on Europe. This decision is at which strategy level?

CityCare Hospital reduced patient waiting times without increasing costs. Which ‘E’ was improved?

Delta Ltd’s managers only choose between a few known options when making strategic changes. This demonstrates:

NovaTech’s new CEO replaced the long-term strategic plan with flexible, evolving initiatives. Which model fits this?

GreenLife NGO achieved its fundraising goals with fewer staff and lower costs. Which aspect of VFM improved?

Which THREE of the following are stages in the rational model of strategic development?

Which ONE of the following statements are consistent with incrementalism?

T PLC is recently detailed strategic review of its operations, as well as its external environment. T identified that it had significant skills with regards to the manufacture of electronic displays and launched a range of flat screen televisions. Unfortunately, its new product range, while praised by reviewers, failed to sell well to the public. T therefore abandoned its original strategy and took advantage of an offer by HHH, another electronics manufacturer, to make screens for HHH’s popular mobile smartphones.

Which ONE approach to strategy is closest to that adopted by T when accepting HHH’s offer?

K is a small organisation which makes plastic toys. The company was very recently formed by Mr V. Mr V is a skilled entrepreneur with many years of experience in the industry. The toy industry is incredibly fast-changing, with new innovations being developed regularly. In addition, tastes and trends change regularly, meaning that sales of toys can drop quickly as they fall out of fashion. Mr V is aware that K will often require radically new strategies in order to keep up with these changes. Which ONE of the following approaches to strategic development would be most appropriate for K to adopt?

H College is a government funded provider of education to several thousand students in country G. It aims to ensure that at least 75% of all exams Sat by its students are passed. In the last year, it achieved a pass rate of 75% on its exams (the same as the previous year). The head of the college claimed that this was in spite of the government limiting H College’s budget rise to 3%, which meant that H College was unable to provide the level of service it had in previous years. Inflation in the economy of country G is 2%. The government's official auditor has discovered that the cost per student has risen by 5% in H College over the last year, due to internal problems in operations. H College is expected to offer value for money (VFM). Which ONE aspect of VFM has H College managed to achieve over the last year?

J limited provides television repair services to the customers. It has an excellent reputation for customer service and good quality workmanship. J feels that this has given it a competitive advantage in the market. J is considering launching a car maintenance and repair service. It feels that its excellent reputation is likely to make such a move successful. Which ONE of the following approaches to strategic planning is J adopting?

Which ONE of the following statements is consistent with the role of a typical strategic management accountant?

Which TWO of the following statements relating to the objectives of not for profit organisations (NFPs) are NOT correct?

P is an electricity company, which both generates and distributes electricity. In recent times P has been privatised, and is now owned by a broad range of shareholders, including many institutions.

Under state ownership, the management of P were told to plan with a number of assumptions in mind. For example, assume that selling prices will rise by 2% pa, that the volume of electricity consumed would increase by 1% pa, etc.

P has now started the process of developing a long term strategy for the first time as a privatised company.

Categorise the previous planning approach of P, and recommend a more suitable alternative approach given its newly-privatised state.

P previously took ____1____ approach to its strategic planning. In order to achieve its aims of maximising shareholder wealth, P should now adopt ____2____ approach.

Use the options below to fill in the missing words in gaps 1 and 2

R and M have just gone into partnership designing and making jewellery. They have no experience of this industry, both having recently completed degrees in jewellery design. They believe that the market has the potential for significant future growth. It is a quite dynamic market, as most designers look to bring out new designs each year.

As they have both invested a significant proportion of their life savings into the business, they wish to consider their approach to creating an initial business strategy. They have some experience of strategic development, and anticipate spending most of their time on their business.

Which ONE of the following strategic planning models would be most suitable for R and M’s business?

JMX, a world-leader in motorbike manufacturing, decided a number of years ago to expand into the North American market. It devoted considerable time and attention to formulating its strategy to take on existing operators who made and sold large powerful motorbikes. These operators were largely American and had been established for many years.

Extensive market research was performed before the final decision was taken by the JMX Board, and full environmental analysis conducted. The Board was confident that JMX would be able to compete in a crowded market.

In the early years, JMX failed to hit its targets, as it found the market for powerful bikes difficult to become well-established in. Where it was successful, however, was in making smaller, less powerful motorbikes, for which there was unforeseen yet surprisingly large demand. The JMX Board revised its plans and focussed instead on smaller bikes, and enjoyed great commercial success.

Which approach to strategy is closest to that adopted by JMX?

Which TWO of the following statements are consistent with a Rational Model approach to strategy formulation?

Listed below are 4 companies whose approach to strategic planning are described.

Using the lists below, identify the approach to planning that each company seems to adopt.

A. Company A does not embark on formal strategic planning. Its CEO has little faith in any sort of planning process, preferring instead “to spend time doing, not planning”.

B. Company B develops a new plan every 5 years. The plan is based on what has gone on before with minor amendments to allow for growth.

C. Company C develops a plan in overview every 5 years, but the plan lacks detail. It is amended on an ongoing basis.

D. Company D operates in a stable area of industry where there is little change. It’s plans are always carefully thought out and documented in detail

HY Ltd manufactures lamps in country L. Which ONE of the following is consistent with an operational level strategy?

X is a small conglomerate, consisting of a holding company based at a head office in the capital city of the country and five subsidiaries, each based in a different city. The subsidiaries operate in different industries, but X believes that it adds value by providing excellent top level management and consistent support systems.

X has recently acquired E, a manufacturing company. The CEO of X has arranged a meeting with the Board of E to discuss E’s generic strategy, as the CEO believes that a change from cost leadership to differentiation would be appropriate. The Operations Director of E is also attending the meeting, to explain to the Board of E how the Management Information System of X Group is to be introduced to E

Analyse the information provided about X, and categorise the following elements of strategy: The decision, by X, to acquire E, is an example of ................. (a) strategy. The implementation of common information systems, throughout the X group, is an example of strategy.......................... (b) strategy. The decision whether to pursue cost leadership or differentiation within E is an example of ................................ (c) strategy.

One of the problems with formal planning processes is that an organisation’s analysis of its position is likely to be incomplete, leading to ineffective strategies being selected. This issue is known as

C has just started a dog grooming business. She has no experience of this industry, but identified it as having potential for significant future growth. The market is relatively stable, with few innovations or changes occurring each year. As C has invested a significant proportion of her life Savings into the business, she wishes to consider her approach to creating an initial business strategy. She has some experience of strategic development and has a large amount of spare time to devote to her new business. Which ONE of the following strategic planning models would be most suitable for C’s business?

Which TWO of the following statements are consistent with a freewheeling opportunistic approach to strategy development?

X is a public utility, generating and distributing electricity. Until last year, X was publicly owned. X was then privatised, and is now owned by a range of institutional investors, and a large number of private individuals. When X was owned by the State, it was provided each year with a list of assumptions to be used as a basis for strategic planning. Those assumptions each related to a variable in the planning process, such as ‘assume price increases of 2%’, or ‘assume customer numbers increase by 1.3%’. The mission of X was ‘to provide continuity of electricity supply, at affordable prices’. X now has to start formally planning for long term shareholder value.

Categorise the previous planning approach of X, and recommend a more suitable alternative approach.

X previously took ................... (a) , X should adopt..............................(B) approach to its strategic planning. In order to achieve its aims.

YU is a charity based in country K which aims to offer value for money. It has been set up to manage an area of woodland on behalf of the local population. YU aims to have around 3,000 visitors to the woodland every year, but in the last year it has only had around half of this number. YU has spent the same amount on advertising as in previous years, but has moved from using leaflets to radio advertisements. While YU was able to buy a large amount of radio advertising, YU’s directors were unaware that the chosen station had relatively low numbers of listeners.

With reference to value for money, the low number of visitors indicates ........................ (a) that YU has failed with regards to over the past year. Its poor use of its advertising budget also indicates a lack of ....................... (b).

The following four companies have taken varying approaches to strategic planning. Which of the companies have/has adopted a traditional approach? (Select ALL that apply).

Which THREE of the following are among the duties of a company director in the UK, as codified by the Companies Act 2006?

HMN plc is a UK-based company. It is aware that all of its directors are currently from similar ethnic and educational backgrounds. Good corporate governance suggests that companies like HMN should have a mix of directors with differing experiences and backgrounds. Which ONE strategic benefit is this likely to have to the company?