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1. Which of the following are typically seen as being associated with strategic
decisions?
A.
The organisation's long-term direction
B.
The detailed planning of a department's work over the next month
C.
The values and expectations of powerful actors in the organisation
D.
The scope of the organisation's activities
5. Which of the following terms correctly complete the definition: Operational strategies are about
how the component parts of an organisation deliver strategies in terms of and .
A.
people
B.
alliances
C.
mission
D.
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resources
E.
Processes
6. Strategy involves:
A.
senior managers and board members
B.
managers at all levels
C.
senior and middle managers
D.
senior management
7. What are the three main branches of strategy research that make up the study of
strategy?
A.
Strategy content
B.
Strategic context
C.
Strategy lenses
D.
Strategy processes
D.
All of the above.
11. The variety lens suggests that new strategies take shape in
organisations: A.
because new ideas are tried out in the market and either succeed or do not.
B.
because the new ideas that develop from within it are selected by formal evaluation through strategic
planning systems.
C.
because there are sufficient people who find them attractive.
D.
All of the above
13. When using PESTEL it is easy to get overwhelmed by a multitude of details. Instead, it is
important to step back and identify the:
A.
key drivers for change
B.
relevant Five Forces that exist
C.
complex links between each of the factors
D.
market segments
14. Which three of the following are the most useful ways in which a group of managers could
use scenario planning?
A.
To consider plausible alternative futures
B.
To ensure that the managers always select the only scenario that will work in practice
C.
To develop contingency plans for each scenario
D.
To increase the managers' understanding and perception of forces in the business environment
15. It is always useful to ensure that the three scenarios are 'optimistic', 'middling' and
'pessimistic'. A.
False
B.
True
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16. The five forces that affect the level of competition in an industry are:
A.
the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes; and
government action.
B.
the threat of buyers; the power of entry; the power of substitutes; the threat of suppliers; and the
threat of recession.
C.
the threat of recession; the power of buyers; the power of suppliers; the threat of management failure;
and competitive rivalry.
D.
the threat of entrants; the power of buyers; the power of suppliers; the threat of substitutes; and
competitive rivalry.
18. Forward vertical integration occurs when suppliers are able to cut out buyers who act as
intermediaries.
A.
True
B.
False
C
Often
D
Not possible
19. When identifying strategic groups, which two headings can the relevant characteristics most
usefully be grouped under?
A.
Resource commitment
B.
Competitiveness
C.
Scope of activities
D.
PESTEL factors
20. A strategy canvas is a simple but useful way of comparing competitors' positions in a
market and potential in different segments.
What are the two key benefits of a strategy canvas?
A.
It emphasises the importance of technical quality.
B.
It demonstrates that focusing on market segments means losing the overall picture.
C.
It emphasises the importance of seeing value through the customers' eyes.
D.
It emphasises the need to be clear about relative strengths.
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22. What term is used for an organisation's abilities to renew and recreate its strategic capabilities
to meet the needs of a changing environment?
A.
Competent substitution
B.
Core competence
C.
Renewability
D.
Dynamic capabilities
23. Core competences are the skills and abilities by which resources are deployed
through an organisation's activities and processes such as to:
A.
survive using approaches and techniques that others cannot imitate or obtain.
B.
survive.
C.
achieve competitive advantage in ways that others cannot imitate or obtain.
D.
achieve competitive advantage.
24. A competitor finds it difficult to identify the basis for an organisation's competitive
advantage. What term is used for this situation?
A.
Interdependent causality
B.
Causal dependency
C.
Causal ambiguity
D.
Ambiguous intercausality
25. Which of the following statements correctly relate to explicit and tacit
knowledge?
A.
A systems manual is an example of explicit knowledge.
B.
Tacit knowledge is easier to imitate.
C.
Explicit knowledge is easier to communicate.
D.
Tacit knowledge is personal, context-specific and therefore hard to communicate.
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26. The sharing of knowledge and experience in organisations is an essentially social and
cultural process.
A.
False
B.
True
30. Which of the following answers the question: 'Where does the organisation aspire to be in the
future?' A.
Mission statement
B.
Core values
C.
Vision statement
D.
Objectives
31. Which two statements accurately describe relationships that exist in a large
company? A.
The board is an agent for investment managers.
B.
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33. Which of the following statements accurately relates to the stakeholder model of
governance? A.
Shareholders have a legitimate primacy in relation to the wealth generated by organisations.
B.
Boards attempt to consider the wishes of all stakeholders.
C.
All board members are insiders (typically managers of the company).
D.
Firms generally have a single-tier structure.
34. Which of the following are claimed to be advantages of the shareholder model of
governance? A.
Investors get higher returns than they would under the stakeholder model.
B.
There is a reduced risk for shareholders.
C.
Major investors are more likely to view their investments as being long term.
D.
There is a greater chance of entrepreneurship.
36. Which stance on corporate social responsibility would focus on social and market change,
and give individuals in the organisation responsibility for social responsibility issues?
A.
Enlightened self-interest
B.
Forum for stakeholder interaction
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C.
Laissez-faire
D.
Shaper of society
37. What name is given to the process of divulging information to outside bodies when a person
believes that their organisation is failing in its corporate socialresponsibility?
A.
Showing enlightened self-interest
B.
Social auditing
C.
Legitimising
D.
Whistle-blowing
40. Which of the following is not one of the four broad categories of external
stakeholders? A.
Environmental
B.
Technological
C.
Economic
D.
Socio-political
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41. In many businesses there are periods of relative continuity during which strategy changes
incrementally. What are the three main reasons for this?
A.
By maintaining continuity during a period of environmental change, managers can ensure growth.
B.
Managers are experimenting around a theme.
C.
Managers are unwilling to change a strategy that has been successful.
D.
The environment is changing gradually.
42 Identify two reasons for the development of core rigidities that make it difficult for organisations
to change.
A.
Relationships are crucial to the change process.
B.
Organisational practices are developed over time. These practices may become embedded in
organisational routines that are difficult to change.
C.
The methods that have delivered past success can become taken for granted.
D.
Performance effects lag the development of core techniques.
44. Which of the following are reasons why the history of the organisation is important for
strategists?
A.
It helps detect and avoid strategic drift.
B.
It avoids misattributing the reasons for success.
C.
It focuses the manager purely on the relevant organisation.
D.
It avoids the recency bias.
45. What term is used for a situation where early events and decisions establish policy paths that
have lasting effects on subsequent events and decisions?
A.
Historicisation
B.
Strategic drift
C.
Cyclical strategy
D.
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Path dependency
46. Which of the following is not a way of carrying out an historical strategic
analysis?
A.
Rigidity analysis
B.
Historical narratives
C.
Cyclical influences
D.
Chronological analysis
E.
Key event and decision analysis ('anchor points')
47. Which approach to historical analysis would be most suitable for a manager wanting to
assess an organisation's attitudes to markets, customers and change?
A.
Cyclical influences
B.
Anchor points
C.
Key events and decisions ('anchor points')
D.
Historical narratives
48. Which of the following is not one of the four layers of organisational
culture?
A.
Values
B.
Beliefs
C.
Paradigm
D.
History
50. Which three of the following questions are most likely to be useful when analysing the cultural
web of an organisation?
A.
Who are the heroes and villains?
B.
How is power distributed?
C.
How has the organisation been affected by strategic drift?
D.
Is emphasis on reward or punishment?
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51. Which two of the following explain why the 'taken-for-granted' nature is centrally important in
relation to strategy and the management of strategy?
A.
Because this inevitably means that the culture gives an inaccurate picture of the organisation
B.
Because the culture does not apply directly to managers
C.
Because organisations can be 'captured' by their culture and find it difficult to change their strategy
outside that culture
D.
Because it is difficult to observe, identify and control, culture is difficult to manage
52. Organisational culture has largely been created by previous management actions and
decisions, so can relatively easily be changed in the future.
A.
False
B.
True
53. That approach was tried last year and failed.' Which two of the following apply to this
statement? A.
It is an example of a routine or ritual.
B.
It is an example of a rigid control system.
C.
It is an example of something that is taken for granted.
D.
This statement could only be made in a flat organisational structure.
54. When describing organisational culture some writers use phrases such as 'the way
things are around here'. In relation to this comment, which of the following is the most useful
task of strategists?
A.
To build a future based solely on the existing culture
B.
To investigate the taken-for-granted aspects of the culture
C.
To make changes in control systems so that the culture changes
D.
To make structural change so that the culture changes
60. Which of the following are key principles for successful competition in hypercompetitive
conditions?
A.
Misleading the competition
B.
Maintaining constant strategies
C.
Developing new bases of success
D.
Making a series of small moves (rather than big moves)
This is the correct answer.
E.
Being unpredictable
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62. Which of the following could be major benefits for a seller that collaborates with a major
customer in a technological industry such as aerospace or carmanufacturing?
A.
It may enable joint research and development
B.
Increased seller power
C.
It increases the buyer's power
D.
It enables the customer to increase barriers to entry
64. What are the two key assumptions in understanding competitive dynamics in terms of game
theory?
A.
Competitors may opt to follow game rules of their own choosing.
B.
Competitors are in an interdependent relationship.
C.
Competitors approach business as though it was a game, so do not always behave rationally.
D.
Competitors will behave rationally in trying to win their own benefit.
65. Based on the two basic assumptions of game theory, which two principles guide the
development of successful competitive strategies?
A.
'Think forwards and reason backwards'
B.
'Analyse forwards and think backwards'
C.
'Get in the mind of the competitors'
D.
'Assume that your competitor cannot get in your mind'
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66. Consider the example of a company that is always battling on the basis of price, but realises
that with its cost structure it cannot hope to compete effectively. What, according to game theory,
should it do?
A.
Change the rules
B.
Avoid all collaboration
C.
Continue with current strategies, knowing that the competition will act irrationally
D.
Continue with its current strategies
67. What are the two constraints most likely to face organisations seeking greater market
penetration? A.
The risk of downsizing
B.
The need to consolidate market share
C.
Legal constraints
D.
Retaliation from competitors
69. What term is used for corporate development beyond current products and markets, but
within the capabilities or the value network of the organisation?
A.
Backward integration
B.
Related diversification
C.
Vertical integration
D.
Divergent diversification
70. Which two of the following are most likely to be sources of conglomerate value
creation? A.
Exploiting dominant logics rather than concrete operational relationships
B.
Divestment
C.
Entering markets of high risk
D.
Entering countries with underdeveloped markets
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72. A film company and a music recording company may choose to combine, believing that the
result will be more effective than the sum of the two component parts. What term is used for the
benefits?
A.
Synergy
B.
Diversification
C.
Integration
D.
Consolidation
73. Diversification may create efficiency gains by applying the organisation's existing
resources or capabilities to new markets, products or services. These gains are known as
economies of scale.
A.
False
B.
True
74. What does conventional finance theory say about the spreading of risk for shareholders when a
company diversifies?
A.
There is significant benefit, provided the diversification leads to synergy.
B.
There is little benefit to shareholders as they have already spread their risk by holding a range of
shares.
C.
There is significant benefit, provided the diversification leads to an increase in corporate parenting
capabilities.
D.
There are always significant benefits from the reductions in risk.
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75. Which of the following definitions explains what is meant by the corporate
parent? A.
The central head office of the organisation
B.
The founder of the business
C.
The owner or major shareholder of the corporation
D.
The levels of management above that of business units
76. Which three of the following are the key criteria that should be considered in relation to
a multi- business portfolio?
A.
Potential problems
B.
Attractiveness
C.
Balance
D.
Fit
E.
Synergy
77. A particular business unit operates in a low-growth, mature market, in which it has a large
market share. What term is used in the BCG matrix for this business?
A.
Ballast
B.
Cash cow
C.
Star
D.
Harvest/divest
Interdependence between country operations increases the pressure for global coordination.
A.
False
B.
True
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Some brands, such as Coca-Cola, are able to successfully market in very similar ways around the
world. What is this called?
A.
Global customisation
B.
Scope economies
C.
Transferable marketing
D.
Favourable logistics
Porter's Diamond has been used by governments aiming to increase the competitive advantage of
their local industries. Which of the following are examples of this?
A.
Governments have encouraged competition rather than protect home-based industries.
B.
Governments have encouraged the growth of clusters of related industries.
C.
Governments have raised tariff barriers to protect local industries.
D.
Governments have encouraged the growth of industries previously unrepresented in the local
economy.
Internationalisation is increasingly not about exploiting existing capabilities in new national markets.
A.
False
B.
True
What name is given to the purchase of components and services from the most appropriate suppliers
around the world regardless of location?
A.
International compartmentalisation
B.
Multidomestic marketing
C.
Global sourcing
D.
The global–
local
dilemma
Which international strategy has a dispersed configuration and low levels of coordination of
international activities?
A.
Transnational
B.
Global
C.
Multidomestic
D.
Export
Which three of the following are the key factors to consider when assessing international retaliation?
A.
The reactiveness of the defender
B.
Five Forces analysis
C.
The clout that a defender can muster
D.
The attractiveness of the market to the new entrant
E.
PESTEL factors
What term is used for an approach where firms initially use entry modes that allow them to maximise
knowledge acquisition while minimising the exposure of their assets?
A.
Multidomestic expansion
B.
International competitor elimination
C.
Foreign direct investment
D.
Staged international expansion
The view that innovation involves technologists creating new knowledge, which then forms the basis
for new products for the rest of the organisation to produce andmarket, is known as market push.
A.
True
B.
False
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What term is used for the process by which innovations spread among users, varying in pace
and extent?
A.
The tipping point
B.
Incremental innovation
C.
Radical innovation
D.
Diffusion
Which of the following are the contextual factors that managers should consider when deciding
whether to move first or not?
A.
The speed of change in the market
B.
The shape of the experience curve
C.
The organisation's capacity for profit capture
D.
The availability of complementary assets
Which of the following is most likely to be a key issue during the start-up stage?
A.
Releasing capital as a reward
B.
Changing to intrapreneurship
C.
Sources of capital
D.
Changing from the role of entrepreneur to manager
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What name is given to people who set up a succession of enterprises, investing the capital raised on
exit from an earlier venture into new growing ventures?
A.
Serial entrepreneurs
B.
Serial venturists
C.
Venture capitalists
D.
Intrapreneurs
Which three of the following are key issues that a social entrepreneur must consider at start-up?
A.
The development of ecosystems
B.
Business model
C.
Social mission
D.
Organisational form
Many social enterprises take on cooperative forms. What are the two main disadvantages of
this form?
A.
Cooperatives can be slow to take hard decisions.
This is the correct answer.
B.
It is difficult to keep financial records.
C.
It increases the number of levels in the hierarchy.
D.
It may be difficult to decide which stakeholders to include or exclude.
Kanter considers that there are benefits to business of involvement with social enterprise. Which of
the following are among the specific benefits that Kanter identifies?
A.
Gaining first-entrant advantages in foreign markets
B.
Developing new technologies and services
C.
Attractive publicity
D.
A feel-good factor
E.
Accessing new pools of potential employees
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Which three of the following are most likely to be motives for acquisitions and mergers?
A.
To increase capabilities
B.
To create consolidation opportunities
C.
To use existing capabilities more successfully
D.
To increase speed of entry into a rapidly changing market
What term is used for M&A integration in which it is implied that both the acquired firm and the
acquiring firm learn the best qualities from the other?
A.
Preservation
B.
Symbiosis
C.
Holding
D.
Absorption
The Royal Bank of Scotland's consortium competed with Barclays Bank to acquire the Dutch bank
ABN AMRO: the Royal Bank of Scotland won, but the excessive price of'70bn (~$98bn) soon drove
the victor into financial collapse and government ownership. What term is used for this situation?
A.
Winner's curse
B.
Hubris
C.
Acquisition
D.
Excessibility
In the context of strategic alliances, what is meant by the term 'collaborative advantage'?
A.
The benefits of being part of a network of alliances of which an organisation is a member
B.
The aim of two or more organisations in sharing resources and activities to pursue a strategy
C.
The benefit of creating a new entity that is owned separately by the partners involved
D.
The result of managing alliances better than competitors
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Which of the following is not a stage that occurs when two organisations form and eventually dissolve
an alliance?
A.
Courtship
B.
Negotiation
C.
Storming
D.
Maintenance
E.
Start-up
F.
Termination
Analysis suggests that a company could find a strategy that gains market share for advantage, and
that exploits its superior resources and competences. The organisational culture suggests that it
should stick to what it knows best. What strategy would you suggest?
A.
Diversification
B.
Retrenchment
C.
Market penetration
D.
Market development
Analysis suggests that a company's existing markets are saturated. The company wants to exploit its
strategic capabilities in new arenas and satisfy its stakeholders by making rapid growth. What strategy
would you suggest?
A.
Retrenchment
B.
Market development
C.
Diversification
D.
Market penetration
If managers use their judgement when applying the techniques, the criteria of suitability, acceptability
and feasibility will identify the best strategy.
A.
True
B.
False
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Which of the following is not one of the four main dangers with formal planning that
Mintzberg identifies?
A.
Dampening of innovation
B.
Detachment from reality
C.
Not providing a sense of security and logic
D.
Confusing strategy with a plan
E.
Over-complex planning process
Which four of the following are the central tenets of organisational learning?
A.
Experimentation is the norm.
B.
Employees should be appointed on the basis of their previous educational success.
C.
Organisations are pluralistic.
D.
Managers facilitate rather than direct.
E.
Information flows and relationships between people are lateral as well as vertical.
What term is used for an organisation capable of continual regeneration from a variety of knowledge,
experience and skills of individuals within a culture that encourages mutual questioning and challenge
around a shared purpose or vision?
A.
Strategic organisation
B.
Learning organisation
C.
Pluralistic organisation
D.
Emergent organisation
Middle managers are likely to see strategy development in terms of intended, rational, analytical
planned processes, whereas SEOs see strategy development more as a result of cultural and political
processes.
A.
False
B.
True
What term is used for the structures, processes and relationships through which an
organisation operates?
A.
The organisational design
B.
The organisation's culture
C.
The organisation's configuration
D.
The organisational paradigm
The speed of change and increased levels of uncertainty in the business environment have increased.
What is the most important result from this for organisations?
A.
They must become learning organisations.
B.
They must develop into international organisations.
C.
Their structures must become more rigid and stronger.
D.
They must have flexible designs and be skilled at reorganising.
Transnational corporations are required to simultaneously achieve local responsiveness and global
coordination. For this to work, global managers need to:
A.
cross national and functional boundaries while also being sensitive to local needs.
B.
ensure global innovation and learning.
C.
spot talent and foster innovation.
D.
All of the above.
Which three of the following are typical dilemmas in organising for success?
A.
Holding the ring (tight–loose) versus holistic solutions
B.
Vertical accountability versus horizontal integration
C.
Empowering versus best practice
D.
Centralising and decentralising
E.
Hierarchies versus networks
A dilemma for managers in the interconnectedness of configurations is which element drives the
others. The aim is to ensure that strategic elements drive structural elements.
A.
False
B.
True
There are different styles of managing strategic change. Which of the following are the potential
benefits of 'direction' as a change style?
A.
Clarity and speed
B.
Increasing ownership of a decision or process
C.
Maintaining control over the change process while also involving people in it
D.
Overcoming lack of information or misinformation
The style of leading change associated with ?persuasion' (or 'education') is best described as:
A.
Personal authority is used to set direction and the means of change
B.
A strategic leader retains coordination and authority but delegates elements of the change process
C.
Gaining support for change by generating understanding and commitment
D.
Involvement in setting the strategy agenda and resolving strategic issues by groups
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Which of the following is not one of Balogun and Hope Hailey's important contextual features that
need to be taken into account when designing change programmes?
A.
Capability
B.
Readiness
C.
Capacity
D.
Technology
E.
Power
Strategic change levers may be symbolic in nature. Which of the following do you think is the most
powerful symbol?
A.
Behaviour of managers
B.
Changes to systems such as reward, information and control systems
C.
Use of stories such as newsletters
D.
Physical changes in the work environment, such as relocations or changes to office space
Which of the following is least likely to be used as a mechanism for managing change from a
political perspective?
A.
Using symbols, rituals and language to legitimise change
B.
Building alliances and networks
C.
Associating with powerful stakeholder groups
D.
Looking for windows of opportunity
E.
Acquiring resources
Porter's view is that the CEO has a key role as a strategic leader, setting a disciplined approach to
what fits and does not fit the overall strategy. Which of the following are dangers of this approach?
A.
Non-executive directors gain a greater say in strategic planning.
B.
CEOs can become over-confident and launch strategic initiatives of ever-increasing ambition.
C.
The CEO 'owns' the strategy and is responsible for its success.
D.
Failures are blamed on the CEO rather than being investigated.
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Which of the following is claimed to be the main benefit of using the top management team to carry
out strategic planning activities?
A.
Top management teams are often made up of diverse individuals.
B.
They are often appointed by the CEO, so act independently.
C.
They bring additional experience and insight to the CEO.
D.
They can develop a cohesive and consistent approach to decision making.
Which of the following are good reasons why a strategic planner is often recruited from within
the organisation?
A.
Participating in strategy provides promising managers with an overview of the organisation as a
whole.
B.
They bring intuitive understanding, networks and credibility to the planning process.
C.
Participating in strategy provides promising managers with exposure to senior management.
D.
It introduces new ideas and perspectives on the organisation.
Which three of the following may increase the influence of middle managers on strategy making?
A.
When they have access to an organisation's 'strategic conversation'
B.
When they have access to organisational networks
C.
When they are deeply involved in operations
D.
When they have key organisational positions
Which of the following is not one of the four roles that consultants may play in strategy development
in organisations?
A.
Providing support for top management's views on the organisation's strategic issues
B.
Transferring knowledge
C.
Promoting strategic decisions
D.
Analysing, prioritising and generating options
E.
Implementing strategic change
What is the key finding of the McKinsey & Co. research on who should be included in
strategy making?
A.
Only the most senior managers should be involved.
B.
The people involved should be kept the same to ensure consistency.
C.
The people involved should vary according to the nature of the issue.
D.
Managers at many levels should always be involved.
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What term is used for the process of winning the attention and support of top management and other
important stakeholders for strategic issues?
A.
Behavioural economics
B.
Issue packaging
C.
Strategic workshops
D.
Strategic issue selling
Senior managers should plan a strategy workshop with an open mind about what they hope to
achieve.
A.
False
B.
True
A company decides to assess whether operating from a single large site is essential to profitability. It
studies the possible outcomes of operating from a varying number of sites of different sizes. What
activity is it engaging in?
A.
Hypothesis testing
B.
Hypothetical prescription
C.
Hypothetical strategisation
D.
Strategisation
Which of the following criteria should a project team meet when making a business case for a new
product in a large organisation?
A.
Is it focused on strategic needs?
B.
Does it contain detailed procedures and policies?
C.
Does it plan actions for the whole organisation?
D.
Is it supported by key data?
E.
Does it demonstrate solutions and actions?
F.
Does it provide clear progress measures?