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E3 – E3 Strategic Management

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Showing 13–15 of 15 questions

Question 13

Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.

JJJ is a listed company that is considering launching a new product into its market.

Which of the following considerations affects the Acceptability of this new product launch?

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    The potential impact of the launch of the new product on the profitability of JJJ.
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    The availability of funds within JJJ for launching the new product.
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    The amount of production capacity JJJ will require to make the new product.
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    Whether the product is consistent with the strengths of JJJ.
Question 14

Company TTT produces a range of products, including products T1 and T5.

Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer pReferences. Overall market share is low and continues to reduce.

However, in addition to external sales T1 is also used as a component of product T5.

Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.

Which of the following is an appropriate strategy for TTT to adopt?

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    Divest both product T1 and product T5.
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    Harvest product T1 and Divest product T5.
  • ○

    Harvest both product T1 and product T5.
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    Divest product T1 and Harvest product T5.
Question 15

HHH is a teaching Organization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machinery.

Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?

Select an option, then click Submit answer.

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    Operations
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    Service
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    Procurement
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    Human resources management