Q1. What are the disadvantages of a divisional organisational structure? Select ALL that apply.
A.Knowledge may not be shored between different divisions
B. Divisions may end up competing with each other
C. Potential duplication of activities may occur
D. There may be a lack of specialisation on a particular product
E. It con be difficult to undertake expansion in the form of new divisions
F. It is difficult to develop managers due to a lack of responsibility in their roles
Correct Answer: A, B, C
Q2. An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis. It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal. What stage of its strategic analysis has the organisation failed to carry out?
A.An external analysis of the business's environment
B. Identification of strategic options
C. Identification of functional policies
D. Making strategic choices
Correct Answer: A
Q3. A business manufacturing running trainers is considering exporting to a fast growing Asian market. Using Porter's Five Forces, which of the following statements is most likely to be incorrect?
A.Supplier power is likely to be high
B. Competitive rivalry is likely to be high
C. New entrants are likely to be low
D. Substitutes are likely to be high
Correct Answer: A
Q4. An organisation undertakes a planned strategy and it is currently at the stage of completing a strategic analysis. It has defined what it is seeking to achieve, identified the strengths and weaknesses of the company and has undertaken a corporate appraisal. What stage of its strategic analysis has the organisation failed to carry out?
A.An external analysis of the business's environment
B. Identification of strategic options
C. Identification of functional policies
D. Making strategic choices
Correct Answer: A
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