Company AA has decided that it needs to improve its strategic decision-making process and is
considering implementing Scenario Planning.
The Management Accountant has been requested to investigate this further and also to consider
how the company can use scenarios to formulate a competitive strategy.
Which of the following statements are CORRECT?
Select ALL that apply.
Options
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Correct Answer:
A, C, E
Q: 2
VWX manufactures and sells a wide range of products. All these products utilise lenses and digital
imaging technologies. VWX is considering how to manage its product portfolio.
Management is concerned about two product ranges in particular: cameras and home projectors.
VWX's cameras are Single Lens Reflex (SLR) cameras featuring interchangeable lenses and provide
detailed, high quality images of objects both at very close range and at considerable distances. VWX
has the largest share of the camera market but the market sales are falling as people increasingly use
their mobile phone handsets to take and share photographs.
VWX has a small share of the home projector market. As a consequence the range is loss making.
The home projectors are used to show photographs or films on large wall-sized formats. There is a
growing trend for customers to buy home projectors to connect to mobile phones, tablets and games
consoles to project the content into a larger image and in order to share it.
Which THREE of the following product management strategies should VWX adopt?
Options
Discussion
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Correct Answer:
A, B, C
Q: 3
GV is a manufacturer and retailer of high quality suede gloves. GV makes all of its sales in country F,
and is extremely profitable. After many successful years trading, GV has accumulated significant cash
reserves and would like to grow the business organically.
After some investigation work, GV has discovered an opportunity to sell leather shoes in country P.
Which of the following strategic directions is GV taking if it pursues this opportunity, according to
Ansoff's product / market matrix?
Options
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Correct Answer:
C
Explanation
:
Q: 4
Which of the following is NOT one of the main principles contained within the UK Corporate
Governance Code?
Options
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Correct Answer:
C
Q: 5
BBB is a manufacturer of convenience meals. Which of the following could be Weaknesses for BBB?
Select ALL that apply.
Options
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Correct Answer:
B, C, D
Q: 6
A resource audit identifies the resources that are available to an Organization and seeks to start the
process of identifying competencies. By assessing the results from a resource audit, a company can
evaluate how well its resources have been utilised and the efficiency and effectiveness of the
Organization's systems.
The Ms model is used to help managers undertake a resource audit.
Which THREE categories will be included in a resource audit?
Options
Discussion
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Correct Answer:
A, C, D
Q: 7
According to Johnson, Scholes and Whittington, Suitability is an important consideration when
evaluating potential alternative investment strategies.
Which of the following is a Suitability consideration?
Options
Discussion
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Correct Answer:
C
Q: 8
Which of the following statements would encourage an Organization to use Scenario Planning?
Select ALL that apply.
Options
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Correct Answer:
A, B, E
Q: 9
Company MM is wanting to build an out of town shopping complex. This will be located near a busy
road which is surrounded by housing estates. MM has yet to obtain planning permission. It
recognizes that unless it takes action, the local residents will object to MM's plans. As the Publicity
Manager you have been asked to take over responsibility for Stakeholder Management.
Which of the following Stakeholder Management statements is NOT correct?
Options
Discussion
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Correct Answer:
D
Q: 10
CCC is a local authority based in Country M. A local authority (LA) is a public sector Organization
which has administrative responsibilities within a geographical area and is responsible for the
provision of a range of public services within its area including schools, leisure, policing and housing.
The majority of CCC's income comes from central Government funding. In the last four years, the
global economic downturn has resulted in the central Government of Country M having to drastically
cut its funding to all LAs. Six months ago, CCC appointed a new Chief Executive who, since his arrival,
has attempted to make a number of changes to the Organizational culture and structure of CCC. He
has stated that these changes are essential if CCC is to continue to operate effectively within the
current economic environment. The Government of Country M has recently announced that all LA's
must reduce their overall expenditure from current levels by 15% within the next year.
Which of the following types of change is CCC experiencing?
Options
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Correct Answer:
B
Q: 11
You are a Management Accountant working for a logistics firm that wants to build collaborative
relationships with each of its key clients.
Which of the following changes to the management accounting function would you recommend to
help the development of collaborative partnerships with a client?
Select ALL that apply.
Options
Discussion
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Correct Answer:
B, C
Q: 12
FFF is considering developing a new website that will allow it to advertise and sell its high quality
jewellery products online. The Board of FFF has identified that the cost of developing and managing
a website would be relatively low. It is predicted that FFF will sell only a small percentage of its
products through the website, as most customers like the personal experience of shopping in store.
However, research undertaken by the Marketing Director indicates that the website could be
used very successfully by FFF for online marketing and customer communication. Therefore, the
Marketing Director has suggested that FFF should develop an IT/ IS strategy to ensure a strategic
focus for its website development. However, most of FFF's Board members, who are the main
shareholders of the business, believe that developing an IT/IS strategy is unnecessary in order to
develop and manage its website.
Which of the following arguments could be made by the Marketing Director to the Board of FFF to
persuade it that an IT/ IS strategy would be appropriate in relation to the current website
development?
Options
Discussion
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Correct Answer:
C
Q: 13
JKL Plc manufactures and sells a range of consumer electronic products. it is organised into four strategic business units (SBU's), each responsible for a specific business segment. Which business segment would benefit most from a Build strategy? Personal Computer Tablet Smartphone Personal Music Player
Your Answer
Discussion
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Correct Answer:
C
Q: 14
DRAG DROP LMN is a fast food manufacturer that makes 'Ready-meals'. Place the appropriate stage of the Value Chain against each of the activities below:
Drag & Drop
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Correct Answer:
Answer Area
Receipt, storage and distribution of 'Ready-meals' ingredients.: A. Inbound logistics
Cooking, testing and packing 'Ready-meals: B. Operations
Distributing 'Ready- meals' to customers.: C. Outbound logistics
Recruiting and training staff.: F. Support activities
Purchasing 'Ready-meals' ingredients.: F. Support activities
Building the 'Ready-meals' brand.: D. Marketing & Sales
Q: 15
DRAG DROP RST is a national airline that differentiates itself by the quality of service it provides to its passengers. Place the appropriate Value Chain activity next to each aspect of RST's service.
Drag & Drop
Discussion
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Answer Area
Website advertising, timetables and enabling online bookings.: E. Marketing and sales
Retail shops and agents where passengers can book flights.: E. Marketing and sales
Fast check-in for passengers.: B. Inbound logistics
Large choice of in-flight meals.: A. Operations
Fast delivery of passenger's luggage to arrivals carousel.: C. Outbound logistics
Q: 16
DRAG DROP Select the label which best defines the periods of decline outlined in the situations presented below.
Drag & Drop
Discussion
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Correct Answer:
Answer Area
A large conglomerate has decided to sell its food manufacturing division.: C. Divestment
A school has had to drastically cut its costs as a result of funding reductions from local government but must continue to offer the same service to its nunile: A. Retrenchment
A small family run travel business has been given notice that it must repay a large loan to its bank. It cannot compete with the large national competitors The bank has demanded the: D. Liquidation
A local college has repositioned itself in the market place to attract more overseas students by investing in e-learning technologies: B. Turnaround
Q: 17
DRAG DROP DDD is a company which publishes paper-based books. In the last 10 years DDD has seen a steady decline in its sales. Last month, one of its major customers, a large chain of high street bookshops announced that it would be closing as a result in declining sales in the paper-based book market. The Board of DDD has therefore announced that in order to survive, it must re-focus the business upon the developement of electronic books, which will require a significant investment in new technology and staff training. However, some staff will be made redundant as part of this process. The Board of DDD has stated that it will reward staff who actively embrace the change process. Which of the activities below would occur within the 'Unfreeze', 'Change' or 'Refreeze' stage of Lewin's three-stage model?
Drag & Drop
Discussion
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Correct Answer:
Answer Area
Regular communication regarding the redundancy process.: B. Change
Communication to staff regarding the closure of a major customer.: A. Unfreeze
Publicise success stories such as new customer orders for electronic books.: C. Refreeze
Re-training in the use of new electronic book technologies.: B. Change
Bonuses offered to staff who embrace change.: C. Refreeze
Counselling for those staff made redundant.: B. Change
Q: 18
DRAG DROP HHH is a mobile telecommunications provider in Country D. HHH presently offers telephone and text services at a price per unit (a unit is defined as 1 minute or 160 text characters). It provides Internet connection from handsets at a fixed fee per month. Select the appropriate strategic response to each of the industry developments listed below.
Drag & Drop
Discussion
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Correct Answer:
Answer Area
Increased preference for internet-based instant messaging services and voice calls: B. Change basis of Internet charging
Replacement of newspapers and books by network enabled mobile tablets and e-book: A. Sell additional contracts to existing
Fixed line telecommunications firms offering free telephone calls for customers who buy internet: C. Reduce unit prices
Q: 19
DRAG DROP TTT is a conglomerate with two divisions, AAA and BBB. Advise TTT on the most appropriate strategy to adopt for each division.
Drag & Drop
Discussion
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Correct Answer:
Answer Area
AAA is making financial losses in a mature market where its sales are considerably less than the sales of rival firms.: A. Divestment
BBB has a strong brand but the techology used in the things it sells is becoming outmoded.: D. Product development
Q: 20
DRAG DROP Select the ethical principle which is most likely to be challenged in each of the following situations.
Drag & Drop
Discussion
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Correct Answer:
Answer Area
A junior accountant has been asked to complete a detailed taxation computation following the acquisition of a foreian subsidiary: A. Professional competence and due care
The analysis of a recent strategic proposal by the Finance Director suggests that organisational profit will increase if 30 staff are made redundant: E. No ethical principle challenged
A Marketing Director discusses the potential acquisition of a rival organisation with colleagues at a marketing conference: B. Confidentiality
A junior accountant has been asked to include information within a forecast which they believe is incorrect and therefore would he misleading: C. Integrity
Which business segment would benefit most from a Build strategy? Personal Computer Tablet Smartphone Personal Music Player
