Change Management Business Revision 3

Question 1

A company revising its business strategy uses a PESTLE analysis. Which factor does the 'L' represent?

Accepted Answer

Legal

Answer

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:

Accepted Answer

Too many overlapping or sequential change initiatives

Answer

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?

Accepted Answer

BCG Growth-Share Matrix

Answer

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:

Accepted Answer

Certain policies or structures automatically expire after a set period

Answer

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:

Accepted Answer

Adjusting the workforce or operations to optimally match current business needs

Answer

Rightsizing involves resizing the organization's workforce or resources to align with actual business requirements, neither overstaff nor understaff.

Change Management Practice Test