Page 277 - E2 Integrated Workbook STUDENT 2018

Answers to supplementary objective test

questions

CHAPTER 1 – STRATEGY AND THE RATIONAL/FORMAL
APPROACH

1.1 The correct matching is:

Customers Key players

Major shareholders Keep informed

Employees Minimal effort

The Government of Z Keep satisfied

CDE has many small customers therefore they will each have little power over
CDE. There are likely to be a number of other suppliers of basic wood products,
therefore the customers will also have low interest. This would put them in the
minimal effort category.

The three major shareholders will be key players as they own 60% of the
company and they are clearly very interested in the decisions the board are
making in relation to their investments.

Employees are mainly employed on seasonal or freelance contracts therefore
they are likely to have low collective power. They will, however, have a high
level of interest in the outcome of this issue as it could affect their jobs. This
would put them in the keep informed part of the matrix.

The government of Z would have a high level of power over CDE, if it chooses
to exercise it, as it owns the woodland that CDE operates from. If CDE obeys
the law, pays it lease payment and pays its taxes, it is likely that the government
will have little interest in the internal or staffing decisions made by CDE. They
would therefore be in the keep satisfied quadrant of the matrix.

271