Change Management Business Revision 3 — Questions and Answers
Question 1: A company revising its business strategy uses a PESTLE analysis. Which factor does the 'L' represent?
- Leadership
- Legal (Correct answer)
- Liquidity
- Logistics
Correct answer: Legal
In PESTLE, 'L' stands for Legal, covering laws, regulations, and compliance requirements affecting the business environment.
Question 2: During business revision, 'change fatigue' among employees is most likely caused by:
- Too few change initiatives over a short period
- Too many overlapping or sequential change initiatives (Correct answer)
- Lack of performance bonuses
- Overstaffing in key departments
Correct answer: Too many overlapping or sequential change initiatives
Change fatigue occurs when employees are subjected to too many changes simultaneously or in rapid succession, eroding motivation and resilience.
Question 3: Which portfolio management tool helps a business prioritize its product lines during a revision by plotting market share against market growth?
- SWOT matrix
- BCG Growth-Share Matrix (Correct answer)
- Porter's Five Forces
- Ansoff Matrix
Correct answer: BCG Growth-Share Matrix
The BCG Growth-Share Matrix categorizes products as Stars, Cash Cows, Question Marks, or Dogs to guide resource allocation decisions.
Question 4: A business revision plan includes a 'sunset clause.' This means:
- The plan takes effect at the start of the fiscal year
- Certain policies or structures automatically expire after a set period (Correct answer)
- Night-shift workers are included in all change processes
- Environmental sustainability targets are built in
Correct answer: Certain policies or structures automatically expire after a set period
A sunset clause specifies that a policy, role, or structure will automatically end after a defined period unless actively renewed.
Question 5: In the context of business revision, 'rightsizing' refers to:
- Expanding the workforce to meet projected growth
- Adjusting the workforce or operations to optimally match current business needs (Correct answer)
- Merging two companies of equal market value
- Standardizing product sizes across all markets
Correct answer: Adjusting the workforce or operations to optimally match current business needs
Rightsizing involves resizing the organization's workforce or resources to align with actual business requirements, neither overstaff nor understaff.
Question 6: A business revision initiative stalls because key decision-makers disagree on priorities. The recommended conflict resolution approach is:
- Proceed without executive alignment
- Facilitate a structured decision-making workshop with all stakeholders (Correct answer)
- Assign the decision to the lowest-ranking manager
- Delay the revision indefinitely
Correct answer: Facilitate a structured decision-making workshop with all stakeholders
A structured workshop brings stakeholders together to surface differences, align on priorities, and build consensus before proceeding.
Question 7: Which metric best measures customer-facing outcomes during a business revision?
- Employee turnover rate
- Net Promoter Score (NPS) (Correct answer)
- Accounts payable days
- Debt-to-equity ratio
Correct answer: Net Promoter Score (NPS)
NPS measures customer loyalty and satisfaction by asking how likely customers are to recommend the company, directly reflecting customer-facing performance.
Change Management Business Revision 3
A company revising its business strategy uses a PESTLE analysis.
Which factor does the 'L' represent?