Excercise Multiple Questions

MULTIPLE CHOICE TYPE QUESTIONS Choose the one alternative that best completes the statement or answers the question. 1) Which of the decisions listed below is not an example of a strategic decision? A) Decision to launch a new advertising campaign B) Decision to invest in a new production plant C) Decision to launch new product D) Decision to enter a new market 2) Which of the following is an outcome of the analysis of the strategic capability of an organisation? A) An understanding of customer needs B) An understanding of opportunities and threats C) An understanding of strengths and weaknesses D) An understanding of HR capability 3) Why is it important to undertake macro-environmental analysis when the micro-environment has more impact on day-to-day operations? A) Because understanding trends in PESTEL factors enables an organisation to anticipate changes, threats and opportunities arising in the operating environment. B) Because managers ought to be aware of the current affairs issues represented by PESTEL factors. C) Because changes in the macro-environment are barriers to the daily operations of the organisation. That is why they are called PESTEL factors. D) Because the macro and micro analyses are two key parts of the overall analysis and you would have an incomplete analysis otherwise. 4) Which of the following statements best defines a barrier to entry? A) A barrier to entry is anything that makes an identified market segment unattractive to firms. B) A barrier to entry is anything that stops a firm in the industry developing a new product for a market segment not currently served. C) A barrier to entry is anything that stops a firm not currently operating in an industry from joining that industry. D) A barrier to entry is anything that stops an organisation from moving from one strategic group to another. 5) Which of the following is not an insight derived from using the five forces model? A) It clearly identifies the opportunities and threats from the