Corporate Level Strategy Formulation Quiz

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Questions and Answers

What is the third approach to execute a turnaround strategy?

  • Implementing a liquidation strategy
  • Replacing the existing team or merging with a healthy organization (correct)
  • Pursuing an expansion strategy
  • Adopting a disinvestment strategy

What is the main goal of a disinvestment strategy?

  • To replace the existing team with a new one
  • To close down the firm and sell its assets
  • To expand the business into new markets
  • To rehabilitate or restructure the organization (correct)

What is the primary consequence of adopting a liquidation strategy?

  • Increased revenue and profits
  • Increased competition in the market
  • Loss of employment opportunities for workers (correct)
  • Improved brand reputation

What is required to make a combination strategy effective?

<p>The right people who can take objective and intelligent decisions (A)</p> Signup and view all the answers

What is a combination strategy?

<p>A mix of the three strategies mentioned above (C)</p> Signup and view all the answers

When is disinvestment usually adopted?

<p>When a turnaround strategy has failed (A)</p> Signup and view all the answers

What is the main advantage of a combination strategy?

<p>It provides a mix of different strategies (D)</p> Signup and view all the answers

What is the primary objective of a turnaround strategy?

<p>To rehabilitate or restructure the organization (B)</p> Signup and view all the answers

What may a company adopt after using a stability strategy for a long time?

<p>An expansion strategy (D)</p> Signup and view all the answers

What is the main disadvantage of liquidation?

<p>It leads to loss of employment opportunities (D)</p> Signup and view all the answers

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