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  • Exam Name: Project and Relationship Management
  • Last Update: 16-Jul-2024
  • Questions and Answers: 210
  • Single Choice: 121 Q&A's
  • Multiple Choice: 82 Q&A's
  • Drag Drop: 5 Q&A's

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E2 Questions and Answers

Question # 1

V is the owner of a small jewellery business which deals exclusively in pearls. The business has built up an excellent network of suppliers which deliver a steady stream of high quality pearls to its workshops, where a team of highly skilled craftsmen turn basic pearls into items of jewellery. V feels that no other company has such a talented and valuable workforce and believes their skills are rare and difficult if not impossible to imitate. They are the key to the company's sustainable competitive advantage and success.


What is the approach to strategy which proposes that competitive advantage is achieved from the organisation's unique assets or competences?


Resource-based view


Emergent strategy


Rational strategy model


Free-wheeling opportunism

Question # 2

A large multinational organisation, with financial processing centres in several countries in which it operates, has chosen to consolidate these activities on one site or, in other words, into a Shared Service Centre (SSC).


Which THREE of the following are drawbacks of an SSC?


Business relationships are weaker. The SSC may not be able to build strong relationships with the business area, which may result in a deterioration of performance in the business area.


The accountants can feel isolated within the business and may develop their own ways of working which may not constitute best practice. Without a larger team around them, they may not be able to develop the acquired skills and knowledge.


It distances the accountants from everyday decision-making in that he/she will be unlikely to have day to day contact with the business area which the SSC supports. The outcome may be that the accountant is unable to provide up-to-date information for decision-making.


Loss of business knowledge as the finance function within the SSC may not have a detailed knowledge of each part of the business.


Lack of knowledge may occur because there is less sharing of knowledge which can be achieved within a larger more diverse team. Best practice may not be employed and practices within some business areas may become outdated.

Question # 3

Charles Handy described organisational culture as:


The way we do things around here


Values embedded in an organisation


An invisible bond which ties the people of the organisation together


The way of the employees and their beliefs

Question # 4

X is a major energy company and has discovered substantial onshore shale gas reserves in a rural part of the country. With new "fracking" technology, underground gas production could be profitable, provide jobs for local people and boost the local economy. This would require the purchase of large areas of land, without which the projects could not proceed.


Although local landowners were generally pleased to sell land to X at high prices, the reactions of local residents were less favourable as they were very concerned about the environmental impact.


Although their powers were limited, their influence on local councils was more significant. Every new fracking site was subject to strict planning controls and local councils controlled this process.


Using Mendelow's stakeholder management theory, which stakeholder group should be categorised as high interest/low power - with a strategy of "keep informed" (unless their power and influence start to increase)?


Local residents


Local landowners


Local Councils


Directors of X

Question # 5

Philip Kotler outlined four levels of competition being faced by most business organisations operating in competitive environments. He based the four levels largely on the degree of product substitutability. These are brand, industry, form and generic competitors.


Analyse the level and type of competition between a 5-star hotel in London (marketed as the "World's greatest hotel") and a global chain of hotels with hundreds of hotels across the world.


Select the level of competition that describes the nature of their competition.


Industry competitors


Generic competitors


Form competitors


Brand competitors

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