QUESTION: 89

AB is a global car manufacturer. Management has agreed to spend $20 million on researching a new type of engine that uses liquid hydrogen to power the car. It believes it is important for AB to take a first step in developing this radical and uncertain new technology.

The $20 million will finance the research only and theprogramwill last two years. Providing the research is successful, after two years it would cost a further $40 million to develop a car to sell. This development would take a further three years. Management is concerned that the international car market may not be willing to buy hydrogen powered cars for at least six years from now.

Which of the following options would NOT be available to AB after two years?

To invest a further $40 million in developing a car for sale.
To ignore the research findings and not commercialise any innovations.
To delay investment in building a hydrogen car until the market demand becomes clearer.
To seek to recover the $20 million it has spent because the research has yielded no commercial benefit.

Answer(s): D

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QUESTION: 90

ZZZ recently hired a new Chief Executive, Q, to lead it through a period of major change. Q immediately set up a change management team which consisted of several senior managers and directors from across theOrganization. Together, they formulated an overall goal for change and then spent several weeks presenting the need for change to all of the staff through a series of staff meetings. At these meetings Q involved staff and built their ideas into the final change strategy.

Q also set a series of interim goals to encourage ongoing performance throughout the change process. When theOrganizationreached these goals, she widely publicised these achievements to help motivate staff.

However, after six months, ZZZ had failed to reach most of the interim goals that had been set. Most of the members of the change management team had not maintained a significant interest in the change process and many of the staff felt that there had been a lack of communication and reward following the initial few weeks of the change process.

Kotter suggested that there were eight steps required to successfully lead change.

Which TWO of the following of these eight steps did Q fail to achieve?

Develop a change vision
Empower broad based action
Incorporate change into the culture
Generate short term wins
Never letting up

Answer(s): C,E

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QUESTION: 91

Which of the following is NOT a use of the Value Chain?

Give managers a deeper understanding of precisely what theirOrganizationdoes.
Implement changes to protect key processes.
Identify the key processes within the business that add value to the end customer.
Identify the non-value added processes.

Answer(s): B

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QUESTION: 92

Kanter identified seven 'power skills' that change agents need to overcome apathy or resistance to change. Which of the following are power skills?

Select ALL that apply.

Ability to work independently.
Ability to collaborate effectively.
Ability to develop relationships based on trust.
Ability to keep within a budget.
Ability to work ethically and sustainably.
Ability to keep projects to a strict time-line.

Answer(s): A,B,C

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QUESTION: 92