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E3 Questions and Answers

Question # 1

Which THREE of the following statements apply to Lynch's performance pyramid? (Choose three.)

The performance pyramid is designed to ensure that all activities support the organization's vision.

The right-hand side of the pyramid contains measures which are predominantly non-financial.

The left-hand side of the pyramid contains measures which have an external focus.

The business operating systems level includes the market-related Critical Success Factors.

The lowest level of the pyramid contains the day-to-day operational measures.

The business unit level includes measures which relate to internal systems needed to meet customers' needs.

Question # 2

AAA has a new CEO who wants to introduce rational strategy into the organisation.

Which THREE of the following are aspects of the rational strategy model?

AAA analyses its environments.

AAA uses digital technology to solve traditional problems.

AAA takes advantage of opportunities as they arise

AAA selects the best strategic option.

AAA uses feedback to influence its future strategy.

AAA makes small scale extensions of past policy.

Question # 3

According to Johnson, Scholes and Whittington,Â Suitability is an important consideration when evaluating potential alternative investment strategies.

Which of the following is a Suitability consideration?

There are limited raw materials available.

Finances are available.

Current markets are not saturated.

Staff will be resistant to change.

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