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1
| | Three main ideas that are fundamental to corporate strategy are; |
| | A) | Portfolio management, growth and relatedness |
| | B) | Competitive advantage, growth and relatedness |
| | C) | Sustainability, portfolio management and relatedness |
| | D) | None of the above |
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2
| | The organizational structure based on a split into functional responsibilities is known as: |
| | A) | the U form |
| | B) | the M form |
| | C) | the C form |
| | D) | the holding company |
| | E) | functional form |
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3
| | In the terminology of organisational structure, the M in “M-form” stands for: |
| | A) | Multidirectional |
| | B) | Multidisciplinary |
| | C) | Multivariate |
| | D) | Multidivisional |
| | E) | None of the above |
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4
| | Which organizational structure enables business managers to maximize economies of specialization, by allowing them to focus on their products and markets, while freeing corporate managers from the distractions of day-to-day operations? |
| | A) | U form |
| | B) | M form |
| | C) | Holding company |
| | D) | Functional holding |
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5
| | In the McInsey “7S framework”, 5 of the elements are strategy, systems, staff, skills and structure. The remaining two elements are: |
| | A) | Shared values and synergy |
| | B) | Shared values and style |
| | C) | Style and synergy |
| | D) | Specialization and standards |
| | E) | Shared values and standards |
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6
| | “…..the overall plan for a diversified company….concerns two different questions: what businesses the corporation should be in and how the corporate office should manage the array of business units”. (Porter, 1987, p.43). This is a definition of: |
| | A) | Strategic intent |
| | B) | Strategic objectives |
| | C) | Corporate strategy |
| | D) | Business unit strategy |
| | E) | None of the above |
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7
| | Two major categories of benefit of the M-form are: |
| | A) | Government and cost |
| | B) | Cost and scope |
| | C) | Government and Scope |
| | D) | Government and control |
| | E) | Cost and control |
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8
| | The `Strategic Planning` style of authority and accountability is characterized by: |
| | A) | corporate executives defining and monitoring corporate and business strategies |
| | B) | corporate executives in influencing business-level strategies and monitoring financial results |
| | C) | Decentralization of control of business strategy to the business and relies solely on financial control at the corporate level. |
| | D) | Laissez faire management style leaving corporate strategy and control to business level managers. |
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9
| | The “financial control” style of authority and accountability is deemed to be most appropriate for: |
| | A) | conglomerate type strategies |
| | B) | global strategies |
| | C) | multinational strategies |
| | D) | transnational strategies |
| | E) | none of the above |
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10
| | Porter (1987) identifies three organizational/process concepts of corporate strategy when discussing the management of the multi-business organization. Two of these are restructuring and sharing activities. The third is: |
| | A) | learning |
| | B) | knowledge management |
| | C) | transferring skills |
| | D) | innovation |
| | E) | entrepreneurship |
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11
| | In the multi-business firm, transferring skills can be described as: |
| | A) | A value activity that is based on the component businesses using the same facilities, services, processes or systems and thereby reaping learning, scale or differentiation benefits. |
| | B) | The process of achieving value by active intervention and improvement |
| | C) | Value added to component businesses through appropriate management |
| | D) | Managing ongoing interrelationships between the businesses. |
| | E) | None of the above |
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12
| | Gould et al (1994) identify three classes of value-adding corporate strategy. Two of these are stand-alone influence and functional and service influence. The third is: |
| | A) | matrix influence |
| | B) | cooperation influence |
| | C) | linkage influence |
| | D) | interrelation influence |
| | E) | none of the above |
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13
| | Which of the following is a classic example of a portfolio planning technique? |
| | A) | Porter’s Five Forces Analysis |
| | B) | Strategic Group Analysis |
| | C) | Value Chain Analysis |
| | D) | Boston Consulting Group (BCG) Growth Share Matrix |
| | E) | None of the above are techniques of portfolio planning |
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14
| | Relatively large businesses in mature markets that generate funds above their reinvestment needs are referred to on the Boston Consulting Group Growth Share Matrix as: |
| | A) | Stars |
| | B) | Key businesses |
| | C) | Cash cows |
| | D) | Primary businesses |
| | E) | None of the above |
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15
| | The concept of the “M – form” and its associated corporate strategy as a value-adding entity, receives little support from academic or practical (market) evidence. |
| | A) | True |
| | B) | False |
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