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E3 Strategic Management Questions 121–128 (page: 17)

Updated On: 4-Aug-2026

The Boston Consulting Group developed a matrix to assist managers in identifying the cash flow requirements of different businesses.  The matrix suggests a number of appropriate strategies. Select ALL the strategies that apply to the Boston Consulting Group's matrix.

  1. Hold
  2. Build
  3. Divest
  4. Defer
  5. Re-appraise
  6. Diversify

Answer(s): A,B,C



In 1989 Earl developed a framework to analyse the linkages between information systems, information technology and information management.
Which of the following is NOT a characteristic of Information Systems strategy?

  1. Aligning strategy development with business needs and seeking strategic advantage.
  2. Business-led and demand-orientated; developing new strategic choices.
  3. Formed with key objectives of using the information resource and generating new businesses.
  4. Organization-based, relationships-orientated and management focused.

Answer(s): D



MMM is a large national bank. MMM has developed a vision statement which states that it aims to:  
* Provide superior returns to our shareholders
* Offer customers the best financial products on the market
* Continuously train and develop our staff
* Continually improve our business processes by utilising the latest information technology
Which of the following would be an appropriate performance measure within a Balanced Scorecard for MMM?

  1. Reduction in staff numbers to increase profit levels.
  2. Undertake customer satisfaction surveys.
  3. Number of training days per member of staff.
  4. Ensure that all IT equipment used is not more than two years old.

Answer(s): C



XYZ is a local tourist attraction. XYZ has a website on which it advertises all of its forthcoming events. XYZ's customers can also use the website to book tickets for these events and can also contact XYZ by email. XYZ's website also uses a range of interactive technologies including geographical location and map facilities and links to external information sites such as the local tourism board and local hotel listings.
Which of the following best describes the range of interactive technologies used by XYZ within its website? 

  1. Social media
  2. Information Sharing
  3. Mash-up
  4. Competence syndication

Answer(s): C



MM is a business which sells entertainment products.  MM now wants to move to a position where it uses e-business as a fundamental part of its business strategy. 
Which of the following benefits would result from MM's use of e-business? Select ALL that apply. 

  1. Cost reductions because of lower overheads and cheaper procurement.
  2. Increased online revenues.
  3. Better control information through monitoring website activity.
  4. An increased use of tacit knowledge.
  5. A reduction in labour turnover and higher morale.
  6. Better control of information.

Answer(s): A,B,C



An IT project is currently being undertaken by VVV, a large university. The project is to design and install a secure information system network for all academic staff and administrative staff in the university. The Executive Board of VVV has insisted that the key objective of the project team is to track and monitor how the information system is being used by the academic staff and the administrative staff once it is implemented.
Which of the following would be an appropriate performance measure for the key objective set by VVV's Executive Board?

  1. Overall usage time of the system compared to plan.
  2. Number of staff trained in the use of the new system.
  3. Percentage of staff usage of the system split between academic staff usage and administrative staff usage.
  4. User satisfaction levels.

Answer(s): C



BCD is an independent training provider in Country P. It provides training to a wide range of corporate customers in business related subjects. All of its tutors must possess a nationally accredited training qualification before they are allowed to teach. Also, all of its courses follow nationally accredited programs and are externally monitored. This is considered to be a critical aspect of its business reputation.
BCD  has one major competitor, JKL, within Country P. JKL offers similar courses to BCD but its tutors do not have to have an accredited training qualification. In addition its courses do not follow the national accredited programs and the content and style of courses varies significantly between JKL centres. 
There are a number of universities which offer nationally accredited courses within Country P. BCD does not consider these as competitors, as they typically attract students wishing to undertake degree courses. The average university pass rate for nationally accredited programs is currently higher than BCD's
Which of the following types of benchmarking would be most useful for BCD?

  1. Process
  2. Internal
  3. Competitor
  4. Strategic

Answer(s): A



RRR is a large insurance company specialising in home and property insurance. It uses a highly sophisticated information system which it uses to process its insurance claims efficiently and effectively. It also holds a vast database of customer information and records. RRR's staff are very highly trained and considered to be the leading specialists in the industry. 
Which category of intellectual capital is NOT present in the description of RRR above?

  1. Human capiltal
  2. Innovation capital
  3. Customer capital
  4. Organizational capital

Answer(s): B



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