ACA Business Strategy 2

Question 1

A UK company is considering expanding into a developing market. According to the stakeholder theory, whose interests should the board consider?

Accepted Answer

All stakeholders including employees, customers, suppliers, communities, and the environment

Answer

Only the shareholders

Answer

Only the employees and shareholders

Answer

Only the interests of the CEO

Question 2

What is the purpose of a SWOT analysis in strategic planning?

Accepted Answer

To identify internal Strengths and Weaknesses and external Opportunities and Threats

Answer

To calculate the company's financial ratios

Answer

To determine the optimal capital structure

Answer

To set individual employee performance targets

Question 3

According to the BCG Matrix, a product with high market share in a low-growth market is classified as a:

Accepted Answer

Cash cow

Answer

Star

Answer

Question mark

Answer

Dog

Question 4

Which of the following is a characteristic of a mechanistic organisational structure?

Accepted Answer

Highly formalised rules, procedures, and a clear hierarchy

Answer

Decentralised decision-making

Answer

Flexible job roles and descriptions

Answer

Emphasis on lateral communication

Question 5

Under UK competition law (Competition Act 1998), which of the following practices is prohibited?

Accepted Answer

Agreements between competitors to fix prices

Answer

Offering volume discounts to large customers

Answer

Entering into exclusive supply contracts with a single customer

Answer

Advertising products at below cost price for a promotional period

Question 6

What is the primary purpose of scenario planning as a strategic tool?

Accepted Answer

To prepare the organisation for multiple possible futures by developing flexible strategies

Answer

To predict the future with certainty

Answer

To eliminate all business risks

Answer

To create a single definitive strategic plan