Take this Exam: A-Level Business: Strategy | Zestly

Question 1

A manager is using Kotter and Schlesinger's framework to overcome resistance to change. If the manager decides to involve employees in the design of the new system, which approach are they using?

Accepted Answer

Participation and involvement

Answer

Explicit and implicit coercion

Answer

Manipulation and co-option

Answer

Facilitation and support

Question 2

Marlow Rope, an invented firm, makes climbing rope for professional mountain rescue teams and for nobody else. It is not the cheapest rope on the market, and it has never tried to sell into the general outdoor market; it competes by knowing that one group of customers better than any rival does. Which of Porter's generic strategies is this, and where is the strategy exposed?

Accepted Answer

Focus, exposed because the entire business rests on one narrow segment — if rescue teams change what they buy, or a large differentiator decides to serve them too, there is nowhere else to go.

Answer

Cost leadership, exposed if a rival finds a cheaper way to make rope.

Answer

Differentiation across the whole market, exposed if customers stop paying for the difference.

Answer

Stuck in the middle, exposed on price and on distinctiveness at the same time.

Question 3

A multinational food company sells the same product globally with only minor packaging changes to comply with local laws. Which marketing approach is this company using?

Accepted Answer

Global approach

Answer

Multidomestic approach

Answer

Niche marketing approach

Answer

Ethnocentric approach

Question 4

A firm has a corporate objective to 'maximise shareholder returns'. How might this influence the firm's decision regarding a new factory investment?

Answer

It will prioritise environmental sustainability over profit

Answer

It will focus on long-term employee welfare programmes

Answer

It will only approve the investment if it promises high dividends or capital growth

Answer

It will ignore the financial risks to ensure local community support

Question 5

A UK-based firm imports raw materials from the USA. If the pound sterling weakens significantly against the US dollar, what is the most likely effect on the firm?

Answer

The cost of raw materials increases, reducing profit margins

Answer

The cost of raw materials decreases, increasing profit margins

Answer

The firm becomes more competitive in the US market

Answer

The firm's export revenue increases