Testbank to accompany Accounting information systems 5 th edition by Parkes et al

Which are the three levels that strategy can be seen to operate at? (i) The internal level. (ii) The external level. (iii) The business portfolio level. (iv) The inter-organisation level. (v) The intra-organisation level. (vi) The competitive level. a. (i) (ii) (vi) *b. (i) (iii) (vi) c. (iii) (iv) (v) d. (iv) (v) (iii) Correct answer: b Learning objective 2.1 – identify and interpret the components of organisational strategy and mission. 2. An example of a strategic level decision would be: a. determining the quantity of raw materials to purchase. b. appointing a new line manager responsible for running the delivery department. c. reconfiguring the production line design to eliminate wasted time due to bottlenecks. *d. deciding whether or not to acquire the remaining shares of a partially owned subsidiary. Correct answer: d Learning objective 2.1 – identify and interpret the components of organisational strategy and mission. 3. Michael Porter sees a business as having two options when deciding on a strategy. These two options are: a. economies of scale and entry barrier. b. economies of scope and differentiation. c. price competition and product abundance. *d. differentiation and cost leadership. Correct answer: d Learning objective 2.1 – identify and interpret the components of organisational strategy and mission. 4. Michael Porter sees the implementation and attainment of strategies as consisting of five steps. Which of the following is NOT one of the steps? a. Fit. b. Uniqueness. *c. Operational efficiency. d. Sustainability. Correct answer: c Learning objective 2.1 – identify and interpret the components of organisational strategy an