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S WOT analysis is an analytic tool that analyses internal and external factors that are of strategic importance to a specific business. From the list below select all that will be regarded as a threat in SWOT analysis done for relevant businesses.
(1)
(2)
(3)
(4)
(a) Statement (1)
(b) Statement (2)
(c) Statements (2), (3) and (4)
(d) Statements (1), (2) and (4)
Which combination of the following statements are all characteristics of strategic objectives?
(1) It is vague and no timeframe is given in which the target is to be achieved.
(2)
(3) A precise formulation of the goals to be achieved and a measure for progress are presented.
(4) A target to be achieved as well as a timeframe for the achievement thereof are given in the objective.
(a)
(b)
(c)
(d)
Select which combination of the strategies below ALL form part of the generally accepted competitive strategies that are available to an organisation.
(1)
(2) Differentiation strategy.
(3) Value-based strategy.
(4) Pricing strategy.
(a) Statements (1) and (3)
(b) Statements (1) and (4)
(c) Statements (2) and (4)
(d) Statements (3) and (4)Which ONE of the following statements regarding the specific classified stakeholders and the type of interest they have, is TRUE?
a) The government is the primary, internal stakeholder of a company and has a strong influence on how the organisation is managed.
b) Pressure groups, such as workers unions, are secondary, external stakeholders that act on behalf of people whose rights are adversely affected by a company.
c) Banks and lenders form part of the secondary, connected stakeholders of a company and they are interested in the cash flows of that company.
d) Shareholders/owners are primary, internal stakeholders and their interests will mainly be issues concerned with the growth and continued existence of the company.
Which combination of the following statements relate specifically to the Strengths, Weaknesses, Opportunities and Threats analysis?
(1) It is a situational analysis that entails a process of gathering and inspecting information as well as analysing the external and internal environment that may have an influence on the organisation.
(2) This model identifies the core competencies of the organisation and builds on those competencies.
(3) This model is considered one of the most useful instruments for strategic planning, because it views all constructive and unconstructive internal and external factors that can influence the success of the organisation.
(4) This is a method that considers certain forces that shape competition in the industry.
(a) Statements (1), (2), and (3)
(b) Statements (1), (2), and (4)
(c) Statements (2), (3), and (4)
(d) Statements (1), (2), (3), and (4)
Which ONE of the following alternatives does NOT relate to a reason why stakeholders can influence future strategies of an organisation?
(a) The organisation has cash flow problems and needs an overdraft facility or loan from their banker.
(b) The main customer of the organisation expects special discounts.
(c) The organisation has a large institutional shareholder that expect high returns from their investment.
(d) The organisation is in existence for more than ten years and is in its maturity phase.
Which combination of the following statements regarding secondary market transactions in the capital markets are ALL true?
(1) A very few transactions in the capital market are secondary market transactions and they do not generate cash flow for the organisation.
(2) The securities of an organisation are made more attractive to other investors in a secondary market, thereby increasing the price of the securities.
(3) A secondary market transaction is created when a holder of an organisation’s securities, sell the debt securities to another investor.
(4) The management of an organisation should be aware of the share price as their compensation is often linked to the share price of the organisation.
(5) The level of the organisation’s share price in secondary market transactions will determine how much funds can be raised by future issues of shares.
(a) Statements (1), (2) and (4)
(b) Statements (2), (3), (4) and (5)
(c) Statements (1), (2), (3) and (4)
(d) Statements (1), (2), (3), (4) and (5)
Which ONE of the following alternatives is an example of what should be reflected in a mission statement?
a) We are a warehousing and distribution business that provides fresh produce and high-quality merchandise to a network of independent retailers who trade under our brands. We are not in the grocery business; we are in the people business.
b) The principles that guide our organisation are entrepreneurship, family values and passion.
c) Nothing means more to us than our valued customers and we believe in going the extra mile to give them the best. From sourcing the finest products to providing willing and efficient staff who take a personal interest in our customers’ needs.
d) We are a part of the community and community is like family. We strive to give you the highest quality produce, the freshest meats, and granny-approved baked goods, all at the right price, every day.
From the statements below, select all that are TRUE regarding long-term financing.
(1) In the case of liquidation equity is repaid only after debt has been repaid.
(2) Equity is considered to be part of an organisation for life while debt have a finite life since it is repaid over time.
(3) Raising too much debt financing by means of long-term loans will not affect the risk profile of an organisation.
(4) A trade-off will always be made between risk and return in cases where a choice needs to be made between financing with either equity or with debt.
(a) Statement (1)
(b) Statement (2)
(c) Statements (2), (3) and (4)
(d) Statements (1), (2) and (4)
Select the combination of the following statements that are all TRUE with regards to why a competitor analysis should be done by an organisation.
(1) To get information to plan for diversification and/or
(2) As a method to study the market, patterns, and trends.
(3) To help with development and formulation of a strategy.
(4) As a method to study forthcoming trends in the industry.
(5) To get relevant information if the organisation can increase their share in the market.
(a) Statements (1), (3) and (5)
(b) Statements (2), (3), (4), and (5)
(c) Statements (1), (3), (4), and (5)
(d) Statements (1), (2), (3), (4), and (5)