MODULE TITLE: Exploring Strategy
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1 SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT LEVEL 3 DIET 2 MODULE CODE: B3132 MODULE TITLE: Exploring Strategy DATE: 29 July 2015 WRITING TIME: 2 Hours TIME: 2.00PM READING TIME: 5 minutes INSTRUCTIONS: The paper is divided into two sections. Section 1 This section of the exam comprises 25 multiple choice questions. Students should complete all questions on the answer sheet provided. Each multiple choice question is worth two marks. Section 2 In this section of the exam, students should answer Two of the five essay questions listed in section two. Answers for each question should be completed in a separate answer booklet provided. Each question answered is for 25 marks. PAPER SETTER: GORDON CAMPBELL
2 SECTION 1: MULTIPLE CHOICE (50%) Complete all questions: 1. What term is used for an innovation that creates substantial growth by offering a new performance trajectory that, even if it is initially inferior, has the potential to become markedly superior? a) Sustaining innovation b) Disruptive innovation c) Anterior innovation d) Radical innovation 2. Which of the following should you consider in segmenting the market? a) Supplier needs b) Organisational core competences c) Customer needs d) Organisational resources 3. A company has started to produce machinery for use in the production of its main product range. What type of related diversification is this? a) Horizontal integration b) Forward integration c) Unrelated integration d) Backward integration 4. The bargaining power of suppliers depends on which of the following? a) The uniqueness and scarcity of the resource that suppliers provide b) Value for money c) Capital costs d) The profitability of the industry
3 5. Which of the following does not relate to the VRIN criteria? a) What aspects of the value chain are or are not vulnerable to substitution? b) To what extent does an organisation have bases of value creation that are rare? c) The relative importance of activity costs internally? d) What aspects of value creation are difficult for others to imitate? 6. Which of the following is a danger for an organisation that uses outsourcing as part of its strategy for reconfiguring its value chain? a) That core activities will be outsourced and core competencies lost b) That they will select companies on the basis of lowest price c) That the firm loses control of activities d) That the organisation's employees will be replaced by cheaper staff 7. Which of the decisions listed below is not an example of a strategic decision? a) Decision to invest in new plant machinery b) Decision to enter new into a new market c) Decision to evaluate supplier performance d) Decision to reduce product range 8. Which of the following does stakeholder mapping not help us to understand? a) Whether the levels of interest and power of stakeholders properly reflect the corporate governance framework b) What the sources of funding for the organisation are c) Who the key blockers and facilitators of a strategy are d) Whether repositioning of certain stakeholders is desirable or feasible 9. Which of the following affects the bargaining power of customers? a) The number of customers and the volume of their purchases b) The growth rate of the market c) Rates of technological innovation d) Supplier switching costs for firms in the industry
4 10. Which of the following is not one of the types of strategy identified in the hierarchy of strategies? a) Market level strategy b) Business level strategy c) Corporate level strategy d) Operational level strategy 11. Which of the following organisations do you think is more likely to engage in incremental change rather than transformational change? a) A company in crisis b) A company that have had a poor heath and safety rating from the regulator c) A well established incumbent d) A company that has developed powerful new technology 12. Which of the following is a correct description of the SWOT analysis? a) A SWOT analysis summarises the opportunities and threats for an organisation. b) A SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation. c) A SWOT analysis summarises the strengths and weaknesses of an organisation. d) A SWOT analysis is a substitute for environmental and industry analysis. 13. Which of the following statements accurately relates to economies of scale? Choose all that apply. a) Economies of scale are particularly important in industries such as motor manufacturing. b) Economies of scale occur whenever a new product enters the market. c) Economies of scale relating to distribution are particularly important in the drinks and food industries. d) Economies of scale are expected benefits from derived from a merger and acquisition strategy
5 14. Which of the following best defines dynamic capabilities? a) An organisation's ability to develop and change its staff if they fail to meet the requirements of the managers b) An organisation's ability to develop and change competences to meet the rapidly changing needs of customers c) An organisation's ability to maintain its position as the most cost efficient in its industry/sector d) An organisation's ability to develop and change competences to meet the needs of rapidly changing environments 15. What key change occurs once a dominant design has been developed in a. particular sector? a) Large incumbent firms are replaced by smaller companies. b) Process innovation becomes more important than product innovation c) Product innovation becomes more important than process innovation d) Innovation becomes of little importance. 16. What do you understand by the term 'corporate social responsibility'? a) It refers to an organisation that takes more responsibility for the social interaction of their employees. b) It refers to an organisation that is more responsive to the needs of their various stakeholder groups. c) It refers to an organisation that is more accountable to its board of directors. d) It refers to an organisation that acts in a responsible manner in relation to the social, economic and environmental impacts of its actions and decisions. 17. Which of the following are not sources of cost leadership? a) Product / Process design b) Experience c) Brand value d) Selling prices
6 18. What term is used for the process by which innovations spread amongst users? a) Tripping b) Diffusion c) Tipping d) Entrepreneurship 19. Which of the following organisations uses a Differentiation Strategy (according to Faulkner and Bowman s definition) a) Ryanair b) Nike c) Tesco d) Argos 20. Which of the following statements apply to Strategic Business Units (SBUs)? Choose all that apply. a) They may be organisationally separate. b) Different competitive strategies may be needed for each SBU. c) Each SBU typically competes in a different market or market segment. d) Each SBU must have a separate manager responsible for its performance. 21. Which of the following examples is strongly linked to a social trend from a PESTEL analysis? a) Development of 4G phones b) Rising demand for Doctors with a specialism in Geriatric medicine c) Recession in Eurozone economies d) Rise in interest rates
7 22. Which two of the following are disadvantages of divisional structures? a) Divisions can become so self-sufficient that they duplicate the functions and costs of the corporate centre of the company b) Specialisation within a division allows competences to develop with a clearer focus on a particular product group, technology or customer group. c) Divisionalisation tends to get in the way of cooperation and knowledgesharing between business units. d) Divisions may become too autonomous, with divisions pursuing their own strategies almost regardless of the needs of the corporate parent 23. What term is used for a plausible alternative views of how the business environment might develop in the future? a) Pestelate b) Scenario c) Strategic option d) Value driver 24. Which of the following departments would you not expect to find in a functional structure? a) Marketing department b) Human resources department c) International department d) Finance department 25. Which approach would you use if you wanted to identify the attractiveness of an industry or sector in terms of competitive forces? a) PESTEL b) SWOT c) Porter's diamond d) Porter's 5 forces Please ensure before leaving the exam hall, that your multiple choice answer sheet is attached to your answer booklet.
8 SECTION 2: ESSAY QUESTIONS (50%) Answer two of the following five questions. Answer each question in a separate answer book. 1. Using examples (and key concepts) discuss the importance that context has on strategy and how the priorities, approach to strategy and style of strategic leadership may vary across such different contexts. 2. Describe two of the following frameworks by which we can analyse aspects of the strategic environment, and critically evaluate the analytical strength of each chosen framework and how it can enhance the quality of strategic decision making: The Five Forces framework Four Links Analysis Industry Life Cycle PESTEL 3. Critically evaluate the value of the Resource Based View (RBV) of Strategy, Make use of examples drawn from different contexts, to comment on the RBV s practical strengths and weaknesses. 4. Describe two of the innovation dilemmas, and assess how each may be considered in relation to the challenges faced by an organisation competing within the sports equipment sector. 5. With reference to Ansoff s Corporate Strategy Direction model, evaluate the strategic options available to the Dyson Corporation and the strengths and weakness of each. Please make specific reference to the corporate parenting role in evaluating the options.
MODULE TITLE: Exploring Strategy
SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT LEVEL 3 DIET 1 MODULE CODE: B3132 MODULE TITLE: Exploring Strategy DATE: 7 th December 2016 WRITING TIME:
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