Assignment - Module 1
Total Marks – 40
Instructions:
A) For all questions except the questions mentioned in instruction B, only the
selection of the correct option is required.
B) For all questions Nos. 11, 14, and 15 necessary explanation should be given for
the answer.
1. Q plc currently sells its product in two major markets – Europe and Asia. While it
is a market leader in Europe, Q has struggled to penetrate the more competitive
Asian market. It has therefore decided to pull out of Asia entirely and focus on its
European markets.
Which ONE of the following levels of strategy does Q’s decision relate to? (1
Mark)
A Business
B Functional
C Operational
D Corporate
2. HY Ltd manufactures lamps in country L.
Which ONE of the following is consistent with an operational level strategy?
(1 Mark)
A Decision to launch a new range of novelty light bulbs
B Expansion into selling all HY goods in country F
C Creation of a new marketing campaign for HY’s range of table lamps
D Decision to reduce floor lamp prices to match a competitor
3. X is a small conglomerate, consisting of a holding company based at a head office
in the capital city of the country and five subsidiaries, each based in a different
city. The subsidiaries operate in different industries, but X believes that it adds
value by providing excellent top level management and consistent support
systems. X has recently acquired E, a manufacturing company. The CEO of X has
arranged a meeting with the Board of E to discuss E’s generic strategy, as the CEO
believes that a change from cost leadership to differentiation would be
appropriate. The Operations Director of E is also attending the meeting, to
explain to the Board of E how the Management Information
System of X Group is to be introduced to E. Analyse the information provided
about X, and categorise the following elements of strategy: (3 Mark)
The decision, by X, to acquire E, is an example of _____1_____ strategy.
The implementation of common information systems, throughout the X group, is
an example of _____2_____ strategy.
The decision whether to pursue cost leadership or differentiation within E is an
example of _____3_____ strategy.
Use the terms below to fill in the missing words in gaps 1 and 2. Note that each
term can be used more than once.
A Business
B Functional
