Problem:
1. Red Pty Ltd is concluding a review of its current strategies. Which of the following statements would be a valid explanation of why current strategies may not meet objectives?
I. The business environment is dynamic.
II. the product life cycle suggests that over time, most products will go into decline.
III. Value chain analysis has identified areas of poor performance that must be improved to meet objectives.
IV. A strategic audit reveals that the organization has not effectively matched its internal weakness with outside opportunities.
A. I and IV only
B. II and III only
C. I, II and III only
D. I, II, III and IV
2. Gravy Pty Ltd reported a return on investment of 18 percent, an asset turnover of six times and a net profit of $450,000. On the basis of this information, the company's sales for the period were:
A. $486,000
B. $2500,000
C. $2700,000
D. $15,000,000
Summary
These multiple choice questions are belongs to Corporate Strategy as well as the first question explains about why present strategies are not working for the company and the second question is about computing the sales with return on investment and asset turnover ratio.