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E2 Questions and Answers

Question # 6

The new Chief Executive of P Company has recently announced that there will be significant changes made to how the company operates. He has stated that his vision for the company cannot be achieved within the existing organisational paradigm.

 

Although the changes are significant, due to increased competitive pressures, the Chief Executive has commented that changes will need to be made quickly.

 

Which of the following types of change will occur in P Company?

A.

Evolution

B.

Adaptation

C.

Reconstruction

D.

Revolution

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Question # 7

The Managing Director of a large golf complex is using Drucker's five questions to help develop a new strategy.

Which of the following statements does not answer one of Drucker's questions?

A.

We will analyse the local market to ensure we are the best.

B.

We will offer state of the art facilities at affordable prices.

C.

We will target the fifty years plus demographic.

D.

We will utilise our knowledge in an attempt to improve our members golf skills and enjoyment of the sport.

E.

We will grow our revenues by 50% over the next three years.

F.

We will aim to constantly improve and update our course and the accompanying facilities.

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Question # 8

Which of the following statements does NOT help characterise Quinn's notion of logical incrementalism?

A.

The alternative to having a long-term strategic plan is not having a plan at all, or having a series of short-term plans as a replacement.

B.

Generally managers know where they want to go and initially work out a few integrating principles that help guide the company's overall actions.

C.

Strategy is a step by step learning process which proceeds from early generalities toward later specifics, clarifying the strategy as events permit and dictate.

D.

Managers consciously keep their decisions small and flexible. In the early stages they avoid precise statements that might impair their flexibility to seize new opportunities.

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Question # 9

An insurance group is contemplating a proposal to outsource its customer call centre. The centre is currently managed as an internal function. Before taking a strategic decision, the group directors are assessing not only the long term operating costs but all the transaction costs associated with a change to an external provider.

 

In the context of this proposal, what are the transaction costs that would need to be considered by the directors?

 

Select ALL that apply.

A.

Contract drafting and negotiations

B.

Incentive payments for call centre staff

C.

Enforcing the terms of the contract

D.

Setting and monitoring service standards

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Question # 10

Four orthopaedic surgeons in a busy hospital department have very different work habits. Each has their own team of medical technicians who are used to the surgeons' personal preferences and are very comfortable with their routines; they basically do the same things every day. This way of working has gone on for several years.

 

When a new administration manager suggested that they train all of the technicians to work with all the surgeons this led to significant resistance from all of the parties involved. The technicians were concerned that they would no longer be able to perform their usual daily tasks.

 

On the basis of the scenario what would be the main cause of their resistance?

A.

The technicians' fear that they would be forced out of their regular habits.

B.

The technicians' concern over personal loss such as benefits and privileges.

C.

The technicians' fear that the changes proposed would harm the efficiency of the department.

D.

The technicians' belief that role ambiguity and uncertainty would increase. 

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Question # 11

Which of the models below identifies triggers for change from the macro environment?

A.

Michael Porter's Five Forces

B.

Michael Porter's Diamond

C.

LoNGPEST

D.

Ansoff's Growth Matrix

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Question # 12

Organisational change can be promoted by many different triggers. Which THREE of the following are external triggers of change?

A.

Activities and innovations of competitors

B.

Appointment of new chief executive officer

C.

Shifts in local, national and international politics

D.

New legislation and government policies

E.

Factory relocation to be closer to suppliers and markets

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Question # 13

A highly complex IT project is being tackled by a self-managing team of three technical specialists who had never met each other before.

 

At first they argued constantly for nearly two days over the best way to tackle the work and what technical software tools to use. Finally these issues were resolved, the team went out for dinner together and they agreed how best to share the workload between them.

 

After this point, the productivity improved dramatically and good work progress was made. All was going well until two days later when another IT specialist turned up unexpectedly. This person was far less experienced than the other three.

 

The new arrival explained that he would be taking over as project manager and immediately started to give explicit orders to the team.

 

In the context of Tuckman's team development theory, which interpretation fits the facts of the scenario.

A.

The team had reached the performing stage but the arrival of the new specialist may result in the team reverting to the storming stage.

B.

The team had reached the norming stage and instructions from the new arrival will quickly help the team reach the performing stage.

C.

The team had already formed and were moving into the storming stage when the new arrival turned up and reset development at the forming stage.

D.

The new arrival will mean that the team will move forward from norming through storming into the final performing stage.

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Question # 14

Which of the following best describes generic competitors?

A.

Competitors which compete for the same income as the company.

B.

Competitors which compete with products which, although technically quite different, satisfy the same needs.

C.

Competitors which have similar goods but not necessarily the same size or structure organisation.

D.

Competitors which have similar size and structure and offer similar products to the same customers. 

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Question # 15

U is a retail chain of fashion outlets. It has invested in a new logistics system to control the movement of stock between its warehouses and high street retail outlets.

 

The project to develop and install the new system was significantly over budget and very late. Now, only three months after the new system has been installed, it is apparent that the project has not delivered its objectives. Many retail managers are complaining that they are not receiving the correct stock to sell. A meeting between the project team and project sponsor ended with everyone blaming each other.

 

Which of the following statements show how the use of PRINCE2 might have reduced the problems encountered?

 

Select ALL that apply.

A.

A focus on the business case of the project.

B.

An organisation structure setting out clear roles.

C.

An emphasis on quality assurance and testing.

D.

Little need for PRINCE2 training by participants.

E.

An emphasis on finishing as soon as possible.

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Question # 16

Which TWO of the following is the Business Strategy of an organisation mainly concerned with?

A.

The decision to exit a market.

B.

How a product would be priced in the market place.

C.

The competitiveness of a particular division.

D.

The efficiency of production, marketing and other functions.

E.

Setting the direction for the organisation.

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Question # 17

Which of the following statements relating to disciplinary sanctions should not be true?

Select ALL that apply.

A.

Disciplinary action follows breaking of clearly laid out known rules

B.

Sanctions stop behaviour quickly

C.

Every disciplinary case is treated differently depending on the situation

D.

The "act" is the focus not the person

E.

Sanctions always begin with a format written warning

F.

The disciplinary process is often endorsed by trade unions

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Question # 18

X Company's Board of Directors uses its expertise to develop future strategies. The Board defines objectives that need to be achieved and then, through formal proactive planning and careful analysis, it selects the most appropriate means to achieve them.

 

Which method of strategy formulation is the Board using?

A.

Emergent

B.

Rational

C.

Opportunism

D.

Resource-based

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Question # 19

During the early part of the twenty first century, B enjoyed considerable success by providing a large selection of popular movies to rent on DVD, from convenient high street retail stores. Unfortunately, B was slow to adapt to the switch from "bricks" (i.e. stores) to "clicks" (i.e. internet-based services) and  was rapidly overtaken by D and other internet-based movie services.

 

This is an example of a firm that enjoyed considerable success in the past, responds too slowly to changes in the external environment and perseveres for too long with the strategy that once served it very well.

 

Which of the following best defines this practice?

A.

Strategic drift

B.

Strategic stretch

C.

Transformational change

D.

Deliberate strategy

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Question # 20

Stimulating conflict can provide benefits for the organisation. Select ALL of the following that apply.

A.

Moderate levels of conflict will prevent an organisation from stagnating.

B.

It is a means by which to bring about innovation and change.

C.

It facilitates bringing problems to the surface so that they can be dealt with.

D.

It brings about a much higher level of tension that might be constructive.

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Question # 21

Identify THREE advantages of a matrix organisation structure for the execution of significant business projects:

A.

Combines functional knowledge with project accountability

B.

Provides flexibility in terms of meeting concurrent priorities

C.

Enables staff to focus on a single professional commitment

D.

Involves staff answering to more than one supervisor or line manager

E.

Fosters interdisciplinary co-operation in pursuit of project goals

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Question # 22

According to Hofstede (1990) a company that values tradition, education and training is said to have which of the following cultural dimensions?

A.

Collectivism

B.

Feminine orientation

C.

Long term orientation

D.

Low power distance

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Question # 23

Which of the following is CIMA's definition of strategy?

A.

A purpose and long term direction of the company including an action plan.

B.

A course of action, including specification of resources required, to achieve a specific objective.

C.

A plan to scope out the organisation's activities.

D.

A statement of long term goals along with a definition of the strategies and policies to achieve these goals.

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Question # 24

Company A sells golf clubs, clothing and accessories. The manager of Company A has been undertaking some competitor analysis and has been advised to consider the local gyms, cycle stores and swimming pools when identifying competition.

Which of Kotler's four levels of competition would these be classed as?

A.

Generic

B.

Industry

C.

Form

D.

Brand

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Question # 25

Meredith Belbin carried out some notable research which concluded that successful teams need a good balance of complementary roles and personalities. His work concluded with the definition of nine distinctive roles that people adopt when working together in a team.

Applying this research, place the correct designated Belbin role label against the relevant personal characteristics.

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Question # 26

The difference between the latest event time and the earliest event time in a project network analysis is referred to as:

A.

Critical Activity

B.

Float

C.

Critical Path

D.

Node

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Question # 27

 Which of the following does NOT describe the theory of the transformational super-leader?

A.

Someone with the right personality, appearance and attributes.

B.

Someone who is caring, inspirational, visionary, ethical and a risk-taker.

C.

Someone with a style consistent with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisation.

D.

Someone who has followed a leadership course at Harvard Business School.

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Question # 28

For complex projects, Gantt charts have limitations.

Which THREE of the following apply?

A.

They do not reveal team problems due to unexpected delays

B.

They do not help in the coordination of resources and networking requirements

C.

They do not show the degree of completion for each phase of the project

D.

They do not provide objective activity times

E.

They do not allow the calculation of precise completion times

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Question # 29

A company has used the Boston Consulting Group (BCG) matrix to plot the position of its products according to their relative market share and the growth of the market.

 

It has identified that it has several products under the heading of star.

 

Which of the following best describes its likely cash position? 

A.

Cash rich

B.

Cash neutral

C.

Cash negative

D.

This model doesn't consider the cash position

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Question # 30

James argues that performance appraisal has its roots in three substantiated psychological principles, meaning that people work / learn / achieve more when they are given the opportunities.

 

Which of the following does NOT apply?

A.

Information for human resource planning.

B.

Involvement in the setting of tasks and goals.

C.

Adequate feedback as to how they are performing, in other words knowledge of results.

D.

Clear attainable goals so they know what to strive for.

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Question # 31

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

A.

Shared Values

B.

Strategy

C.

Systems

D.

Staff

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