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E3 Strategic Management Questions 57–64 (page: 9)

Updated On: 4-Aug-2026

Rosabeth Kanter suggested that Organizations which managed change successfully ('change adept' Organizations) share three key attributes.
Which THREE of the following are the key attributes of change adept Organizations, suggested by Kanter?

  1. Openness to collaborate
  2. Tuning into the environment
  3. Building coalitions
  4. Imagination to innovate
  5. Professionalism to perform

Answer(s): A,D,E



The following definition has been provided by the Chartered Institute of Personnel and Development (CIPD):
'An activity which targets high performance and improvement at work and usually focuses on specific skills and goals, although it may also have an impact on an individual's personal attributes (such as social interaction or confidence). The process typically lasts for a relatively short period.'
Which of the following activities does the above definition describe?

  1. Work based training
  2. Coaching
  3. Mentoring
  4. Leadership Development

Answer(s): B



A large sporting event is due to take place in Country P next year and a project team has been set up to market the event.  The project team recognises that a focus upon effective relationships with a range of key customer markets is critical to the success of the event. These key relationships need to be developed with the spectators, the broadcasting companies televising the event,  the agents who are selling the tickets for the event and the key human resource providers such as the security companies involved in ensuring the overall security of the event.
Which of the following would be the correct classification of the broadcasting companies televising the sporting event, using Payne's 'six markets model' classifications?

  1. Influence market
  2. Recruitment market
  3. Referral market
  4. Customer market

Answer(s): A



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 the Organization. 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 the Organization reached 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?

  1. Develop a change vision
  2. Empower broad based action
  3. Incorporate change into the culture
  4. Generate short term wins
  5. Never letting up

Answer(s): C,E



CCC is a charity which has an excellent reputation within its home country. CCC employs over 300 highly experienced staff and also has 200 skilled volunteers. Its funding mainly comes from donations from the public but its public profile is low compared to larger, more publicised charities.
Due to the recent recession, public donations to CCC have fallen in the last five years, but demand for its services continues to grow.
The government of the country in which CCC operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. CCC has recently been approached by a high profile and well funded charity, PPP, with a proposal to merge. PPP offers complementary services to those offered by CCC.
Which TWO of the following factors would most likely be considered as an 'opportunity' for CCC?

  1. The excellent reputation of CCC
  2. Growing demand for its services
  3. Merging with PPP.
  4. Highly experienced staff
  5. Donations from the public

Answer(s): B,C



AAA manufactures and sells a range of travel suitcases. One model, the 'Executive'  has seen sales growth of around 3% for the last two years, following strong growth since its introduction eight years ago. This slow down in the 'Executive' sales growth is largely due to AAA's competitors offering products in direct competition with the 'Executive'. AAA has therefore had to reduce its price to match those of its major competitors. AAA has also recently upgraded the features of the 'Executive' model to include a variety of different colours and materials. It has also launched a marketing campaign to promote the benefits of the 'Executive' model against its competitors products.
Which stage of the product life cycle has the 'Executive' model of suitcases reached?

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline

Answer(s): C



Which of the following is NOT a key attribute of a successful stretch target?

  1. Set at a level which is easily achievable.
  2. Set at a level which motivates staff to perform at their highest level.
  3. Staff must understand the reason for the stretch target set.
  4. Encourages ethically responsible behaviour to achieve the stretch target.

Answer(s): B



DEF is a medium sized business which manufactures children's clothing. In the last 5 years demand has steadily increased and DEF is struggling to meet this demand within its current manufacturing capacity. DEF's current manufacturing machinery was installed over 10 years ago and now requires updating, if DEF is to survive in the marketplace. 
DEF has established that the latest manufacturing technology would cost $2 million. This would be funded by the shareholders. It would payback within 2 years and would allow DEF to double output from its current level within this 2 year period. It will also improve product consistency and quality. However, it will result in the loss of 20% of DEF's manufacturing staff, most of whom are low paid and low skilled.
DEF is currently reviewing this proposed investment strategy, in terms of whether it meets the criteria of Suitability, Acceptability and Feasibility.
Which of the following correctly identifies the criteria which are met, in regard to DEF's proposed investment strategy?

  1. Suitable and Acceptable
  2. Suitable and Feasible
  3. Acceptable and Feasible
  4. Suitable, Acceptable and Feasible

Answer(s): D



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