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QUESTION: 26

Which of these circumstances might reasonably prompt a reevaluation of an organization's policies and strategic objectives?

I) The retirement of the CEO
II) A merger with another company
III) Divestiture of a major division
IV) Obsolescence of a major technology

I, II, III, and IV
II, III, and IV only
I, II, and IV only
II and III only

Answer(s): A

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QUESTION: 27

A small chain of five retail stores has just completed its initial strategic planning and wishes to determine the effectiveness of its plans for the first year. They should track and measure:

Results from action plans.
Frequency of application of the quality policy.
Attainment of the strategic objectives.
Organization goals.

Answer(s): C

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QUESTION: 28

Three hospitals are located within the same metropolitan are a. One hospital determined that both its cafeteria and its gift shop ranked lower in variety and convenience than the other two hospitals.
Which of the following actions would be most appropriate?

Normalize the data based on any significant differences in the customers being served (for example, economic strata).
Subcontract the cafeteria and gift shop to outside sources that can provide greater attention to these nonmedical aspects of the hospital operations.
Colocate the cafeteria and the gift shop in order to share resources, reduce costs, simplify access, and allow a greater investment in variety.
Look at customer purchasing patterns and profit margins to maximize investment payback.

Answer(s): A

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