STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.
Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

• A. Turnaround
• B. Retrenchment
• C. Liquidation
• D. Divestment
• E. Facilitation

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When FarmCot Foods was founded five years ago, it was a small shop set up by a family of dairy farmers in a disused farm shed, selling their own produce to the local community. The family had decided, at that point in time, to diversify their dairy farming activities into also selling their own milk, cheese and ice cream products.
The aim was to increase their revenues, as dairy farming in their home country had been in decline for a number of years.
Since then, the shop has been very successful and has expanded rapidly over the last three years, due largely to a strong growth in tourism in its home country and a shift in consumer demand for locally sourced fresh farm products. FarmCot Foods is now located in a large purpose-built building on the site of the original farm shed and also operates a very popular cafa, a children's play area and sells a much wider range of products and gifts, which are all sourced from local suppliers.
Which of the following best describes FarmCot Foods approach to strategy development in the last five years?

• A. Emergent
• B. Freewheeling opportunism
• C. Rational
• D. Incremental

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Country W hosts a large music competition every 5 years, which is attended by many international musicians.
The success of the competition is dependent upon effective Customer Relationship Marketing being established with many different market groups around the world. These include music colleges who send their students, broadcasting companies who broadcast the event on radio and television, audience members, online ticket sellers and music journalists who write about the competition in specialist journals.
Using Payne's 'Six Markets Model', which of the following is the correct classification for the music journalists writing about the competition?

• A. Influence market
• B. Supplier market
• C. Referral market
• D. Customer market

BCA is a long established international airline. Which of the following represent Threats to BCA's business?
(Choose all that apply.)

• A. A sudden increase in international terrorism.
• B. A higher level of private car ownership.
• C. Greater popularity of long-haul holidays.
• D. A shortage of trained pilots in BCA.
• E. A substantial rise in the price of oil.

Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)

• A. Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
• B. Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
• C. The organization often experiences 'group-think', leading to a narrow view of the future.
• D. The organization has achieved all of its objectives and operates within a stable external environment.
• E. The organization has not previously experienced any major surprises or expensive strategic mistakes.