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QUESTION NO: 1
Which of the following is NOT a key attribute of a successful stretch target?
A. Set at a level which motivates staff to perform at their highest level.
B. Staff must understand the reason for the stretch target set.
C. Encourages ethically responsible behaviour to achieve the stretch target.
D. Set at a level which is easily achievable.
Answer: D
QUESTION NO: 2
Company PP is a large UK retail company.
In the past it has focused primarily on using financial performance measures. However, PP then realised that this was leading to short-term decision-making on investment in easily valued assets and under investment in assets such as employee skills and customer satisfaction, where short-term returns are more difficult to measure.
It has therefore adopted the Balanced Scorecard approach. PP is now considering enhancing it's approach by using Kaplan and Norton's Strategic Mapping model, as this will enable it to establish its priorities and manage stakeholder expectations.
Which of the following statements would be regarded as improvements by using Strategic Mapping.
Select ALL that apply.
A. It will help PP to evaluate the operational and financial performance of the business.
B. It will help PP to identify and clarify customer-orientated strategies that support the overall business strategy.
C. It will help PP establish the overriding objective of the Organization.
D. It will help to identify and prioritise how external processes would support PP's strategies.
E. It will help inform which strategies, in each of the Balanced Scorecard perspectives, support improved performance.
Answer: B,C,E
QUESTION NO: 3
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?
A. Aligning strategy development with business needs and seeking strategic advantage.
B. Business-led and demand-orientated; developing new strategic choices.
C. Organization-based, relationships-orientated and management focused.
D. Formed with key objectives of using the information resource and generating new businesses.
Answer: C
QUESTION NO: 4
Which of the following would be a suitable performance measure of Internal Business
Processes within Kaplan and Norton's 'Balanced Scorecard' model?
A. Increase in market share.
B. New products developed.
C. Reduction in manufacturing cycle times.
D. Higher P/E ratio.
Answer: C
QUESTION NO: 5
BBB operates a national mobile phone (cell phone) network in one country. It is considering investing in upgrading its network to 4th Generation (4G) by providing an improved bandwidth that will enable its customers faster access to the Internet.
The investment will cost $29 million which BBB's institutional investors have agreed to provide by subscribing to a rights issue. This is because management has informed institutional investors that a rival is already offering 4G and that this is taking customers away from BBB because BBB's network is now regarded as too slow. BBB's remaining customers have shown a willingness to pay extra for 4G and overall the investment will have a positive net present value.
Which of the following statements are correct?
Select ALL that apply.
A. There are sufficient investment funds available.
B. BBB will gain a first mover advantage.
C. There is stakeholder approval for the investment.
D. It is essential given the strategic threats to BBB.
E. It provides a market development opportunity for BB
Answer: A,C,D
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Updated: May 28, 2022