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Last Updated: Jun 18, 2026
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1. A leading retail chain is undertaking environmental scanning as it is concerned that it is becoming uncompetitive and profits have started to fall. The Board of Directors is concerned that it will need to have a viable strategy to present to its shareholders at the next annual general meeting, in order to prevent shareholders' protests.
The company has been reluctant in the past to offer an Internet shopping service. It now believes, however, that by offering this service and introducing customer relationship marketing (CRM), this will produce a strategy that will help it to improve its competitiveness.
Which of the following statements apply to CRM? (Choose all that apply.)
A) CRM utilizes marketing resources to retain, rather than simply attract new customers.
B) The company must be prepared to take customers' needs into account and be able to meet these needs.
C) CRM is about marketing to customers to obtain their loyalty, so customer research is not needed.
D) The CRM process needs to include increasing the range of products that will be offered to customers.
E) In mature markets, existing customers provide the most likely source of future earnings.
2. DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?
A) Identify influential senior managers who will drive through changes in DF's strategic direction.
B) As part of DF's strategic review, identify forces facilitating the need for proposed change.
C) Identify forces facing DF's activities that may create barriers and resistance to change.
D) Provide a framework for identifying forces for and against the proposed changes within DF.
3. Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?
A) Assist the Board in determining risk appetite.
B) Writing the Annual Report.
C) Consider and raise awareness of the ethical impact of proposed strategic decisions.
D) Integration of financial and non-financial information.
4. Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)
A) Product 1 is likely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
B) Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.
C) Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.
D) Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
E) Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.
5. Which of the following would be a suitable performance measure of Internal Business Processes within Kaplan and Norton's 'Balanced Scorecard' model?
A) Higher P/E ratio.
B) Reduction in manufacturing cycle times.
C) New products developed.
D) Increase in market share.
Solutions:
| Question # 1 Answer: A,B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: C,E | Question # 5 Answer: B |
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