Online Access Free E3 Practice Test

AB uses Johnson, Scholes and Whittington's criteria of 'Feasibility and Acceptability' to evaluate potential strategies. AB has begun a project to re-engineer its best selling product.
Apply the appropriate criterion to each of the questions below:

Correct Answer:

F is an entrepreneur who runs a chain of health food shops in Country M. There are no other similar health food shops operating in Country M and the chain has rapidly grown over the last three years. F wishes to continue to grow his chain of shops but is aware that he lacks the funds to enable him to grow at the pace which the market is demanding. He is also concerned that continued rapid growth will result in him losing control over the strong brand reputation and identity that he has built up for the chain of shops.
Which of the following would be the most feasible strategy for F to adopt to continue to grow his business?

• A.Joint venture
• B.Acquisition
• C.Franchising
• D.Licensing

Which of the following correctly defines Information Systems (IS) strategy?

• A.Identifying the information needs of the Organization and aligning development to them.
• B.The roles and structure of information specialists in the Organization and their relationship with users.
• C.The planning, organising, investment and control of information applications in the Organization.
• D.Decisions on the hardware, software and communications solutions used in the Organization.

ZZZ is a retailing Organization that is suffering falling market share and falling profits.
ZZZ has a new Chief Executive Officer (CEO) who is urgently setting up a strategic performance evaluation system. This will involve identifying Critical Success Factors (CSFs) and then monitoring Key Performance Indicators (KPIs).
Advise the CEO which of the following statements is suitable for the role that a Chartered Global Management Accountant should undertake.

• A.Develop KPIs from a range of external data and report on ZZZ's performance against them.
• B.Identify CSFs, develop KPIs, and report on ZZZ's performance against them.
• C.Act as a change leader in developing the strategic performance evaluation system.
• D.Help strategic management to clarify CSFs then develop KPIs, and report on ZZZ's performance against them.

Company W manufactures marshmallows for sale to supermarkets across Europe. W follows a logical and formal approach to strategic planning. Which of the following are valid stages of such a rational strategic planning model? Select ALL that apply.

• A.Review and control
• B.Learning curve
• C.Trial and error
• D.Strategic options
• E.360 degree feedback