Page 147 - BA1 Integrated Workbook STUDENT 2018

Supplementary objective test questions

CHAPTER 6 – POSITION AND GAP ANALYSIS

6.1 UU is a hospital based in a town in country B. It is entirely funded by central
government.

UU has very low infection rates amongst patients, which is relatively unusual
amongst hospitals in country B. The central government has recently launched
a ‘best practice’ scheme which encourages hospitals that are performing well to
share their processes with other hospitals. If UU were to successfully apply for
‘best practice’ status, it would receive a significant increase in its funding.

Which ONE of the following correctly identifies the classification that UU’s
bid for best practice status would be given within corporate analysis?

A Threat focusing on weakness

B Strength focusing on weakness

C Threat focusing on opportunity

D Strength focusing on opportunity

6.2 SSO provides high-speed cable internet access to its customers – who are both
domestic and commercial in nature.

SSO has promised its investors that its earnings will have reached $4m per
annum within 5 years. SSO’s analysis has shown that, if SSO makes no
changes to its current operations, earnings within 5 years will only reach $2.5m.
SSO has already developed two new cost cutting initiatives which they believe
will raise SSO’s earnings to $3.5m per annum within five years.

Which ONE of the following options correctly identifies the size of the
efficiency gap within SSO’s forecasts?

A $2.5m

B $1.5m

C $1.0m

D $0.5m

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