Page 251 - E2 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
2.3 Which TWO of the following statements regarding strategy development
in different contexts are correct? Select all that apply.
A One of the reasons that the rational/formal approach to strategy
development may be unsuitable for small businesses is that the goals of
the business are often inseparable from the goals of the owner.
B It can be difficult to develop strategy in not-for-profit organisations due to
the difficulty in setting objectives as these organisations very often have
multiple objectives.
C A technique used to aid objective setting in public sector organisations is
the Audit Commission’s 3 Es approach which stands for effectiveness,
effort and economy.
D To ensure accountability to the public, government departments are
required to use the rational/formal approach to strategy development.
E The rational/formal approach to strategy development is appropriate in
dynamic environments as it allows unexpected opportunities to be quickly
incorporated into the long-term strategy.
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