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Porter's Diamond model suggests that there are four factors which determine national competitive advantage. The four are listed below.
Which has the incorrect definition?

  1. Factor conditions: includes the availability of raw materials and suitable infrastructure.
  2. Firm strategy, structure and rivalry: if the home market is very competitive, a company is more likely to be world class.
  3. Demand conditions: the goods and services have to be demanded internationally.
  4. Related and supporting industries: these allow easy access to components and knowledge sharing.

Answer(s): C



Which TWO of the following are soft elements of culture highlighted in the McKinsey 7-S Model?

  1. Shared Values
  2. Strategy
  3. Systems
  4. Staff

Answer(s): A,D



According to Kotter's process of change, what is the purpose of building a guiding coalition?

  1. To give the change direction and focus.
  2. To ensure all key stakeholders are brought into the process.
  3. To communicate the long-term vision and strategy.
  4. To enable actions by removing barriers.
  5. To cement the change in the culture of the organisation.
  6. To generate short-term wins.

Answer(s): A



A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).
Which THREE of the following are drawbacks of an SSC?

  1. Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.
  2. The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.
  3. It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.
  4. Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.
  5. Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

Answer(s): A,C,D






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