Page 137 - BA1 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
CHAPTER 1 – THE PROCESS OF STRATEGY FORMULATION
1.1 PPR is a large company which sells a popular brand of soft drink. The company
is split into three different geographic divisions – Europe, Asia and America.
While PPR sells identical products through each of its divisions, it faces different
customer needs and competition in each.
Which of the following options are business level strategies within PPR?
Select ALL that apply.
A Closure of the unprofitable European division
B Selection of a new supplier of plastic bottles for the Asian division
C Price cuts in the European market due to increased competition
D Reducing the level of sugar in the American market to comply with
customer demands
E Launch of a new low calorie drink in all of PPR’s markets
1.2 GG breeds racehorses which it sells to wealthy individuals and investors.
GG’s industry is very slow to change, with methods and systems that have been
in place for the last hundred years. GG is a fairly new company and GG’s
management team have little experience of the industry, having come from
farming backgrounds.
Based on the above information, which of the following options is the
most appropriate approach to strategy development for GG?
A Rational model
B Incrementalism
C Freewheeling opportunism
D Emergent
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