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Managing Performance Questions 119–129 (page: 11)

Updated On: 31-Jan-2026

Drawbacks of the formal top-down approach to strategy include which THREE of the following?

  1. It is too infrequent, typically every three to five years, to allow the business to adapt to changes in the business environment.
  2. Even when a firm is involved in a range of industries and has a unique core competence, there is no guarantee of competitive advantage against more focused players.
  3. The approach assumes that the strategist is able to make reliable assumptions about the future but as critics point out, this is not always possible.
  4. Organisations need to be continuously monitoring their marketplace to ensure that their core competences are still providing a competitive advantage.
  5. The formality of the approach constrains the development of radical innovative strategies.

Answer(s): A,C,E



A fundamental concept of the successful use of a Balanced Scorecard is:

  1. to continually increase the number of performance indicators used to manage the business.
  2. to sometimes use a traffic light system to help prioritise activities in the scorecard.
  3. to see the scorecard as a technique for formulating strategy.
  4. to ensure that the scorecard consists of leading indicators of performance only.

Answer(s): B



A pharmaceutical organisation, whilst developing a drug for the remedy of a cold, discovered by carrying out research tests that the drug made people feel drowsy.

It decided to market this product as a night time cold remedy.

Which of the following best describes this organisation's approach to strategy?

  1. Logical Incrementalism
  2. Rational
  3. Muddling through
  4. Emergent

Answer(s): D



K has recently qualified as a chartered management accountant after seven years in the military serving as a front-line infantry officer. He thrives in difficult situations requiring decisive action, and is accustomed to giving orders to subordinates and having them obeyed immediately.

He is known to give his staff big bonuses and hand out harsh punishments in equal measure. Although not particularly well liked by his team and as yet not very experienced in accountancy, he is regarded as useful by the company directors as someone who will not back away from a difficult task.

Based on the French and Raven model, which are the sources of power that K draws upon in the course of his work.
Select ALL that apply.

  1. Reward
  2. Referent
  3. Expert
  4. Legitimate
  5. Coercive

Answer(s): A,D,E



A leader of a new project at a marketing agency believes that good leadership requires focus on both the task needs and individual needs.

Based on Adair's action-centered leadership theory, which of the following skills is the leader less likely to have due to this?

Select ALL that apply.

  1. Setting performance standards
  2. Checking performance against plan
  3. Controlling quality of work
  4. Training and mentoring
  5. Building team spirit
  6. Ensuring communication within group

Answer(s): A,B,C,D,E,F



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