QUESTION: 9

DEF is an regional airline. It uses the Performance Pyramid developed by Lynch and Cross to illustrate the links between its objectives and performance at differentOrganizational levels. In its Vision statement, DEF states that it will the leading regional airline in Europe by anticipating and exceeding its customers' expectations.
Advise DEF within which part of the Performance Pyramid each of the objectives and measures should be located.

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Answer(s): A

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QUESTION: 10

Which of the following did Johnson, Scholes and Whittington identify as success criteria for the evaluation of strategic options?

Select ALL that apply.

Suitability
Affordability
Feasibility
Acceptability
Durability

Answer(s): A,C,D

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QUESTION: 11

FFF is considering developing a new website that will allow it to advertise and sell its high quality jewellery products online. The Board of FFF has identified that the cost of developing and managing a website would be relatively low. It is predicted that FFF will sell only a small percentage of its products through the website, as most customers like the personal experience of shopping in store.

However, research undertaken by the Marketing Director indicates that the website could be used very successfully by FFF for online marketing and customer communication. Therefore, theMarketing Director has suggested that FFF should develop an IT/ IS strategy to ensure a strategic focus for its website development. However, most of FFF's Board members, who are the main shareholders of the business, believe that developing an IT/IS strategy is unnecessary in order to develop and manage its website.

Which of the following arguments could be made by the Marketing Director to the Board of
FFF to persuade it that an IT/ IS strategy would be appropriate in relation to the current website development?

IT/ IS is expected by FFF's key stakeholders and should therefore have a strategic focus.
IT/ IS forms the basis of FFF's competitive advantage and therefore requires a strategic focus.
IT/ IS is fast moving and FFF can take advantage of new technologies as they become available, if managed strategically.
IT/ IS is very expensive and without a strategic focus there is a risk of costly mistakes.

Answer(s): C

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QUESTION: 12

XYZ operates a national chain of restaurants.

Which THREE of the following are external environmental drivers for XYZ?

Appointment of a new Marketing Director
Recession in XYZ's country
Reduced personal income of its customers due to increased personal taxation
A direct competitor to XYZ closes down
Launch of a new improved menu by XYZ

Answer(s): B,C,D

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