BEC Strategic Planning and Risk Management 1

Question 1

A SWOT analysis evaluates a company's:

Accepted Answer

Strengths, Weaknesses, Opportunities, and Threats

Answer

SWOT analysis is a strategic planning tool that assesses internal strengths and weaknesses alongside external opportunities and threats facing the organization.

Question 2

Porter's Five Forces model analyzes competitive intensity by examining:

Accepted Answer

Rivalry, new entrant threat, substitutes, buyer power, and supplier power

Answer

Porter's Five Forces framework assesses industry attractiveness through five competitive forces: competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of buyers, and bargaining power of suppliers.

Question 3

Enterprise risk management (ERM) is best described as:

Accepted Answer

A comprehensive framework for identifying, assessing, and managing risks across the entire organization

Answer

ERM is an integrated, organization-wide approach to risk management that addresses all categories of risk — strategic, operational, financial, and compliance — in a coordinated manner.

Question 4

A company pursuing a cost leadership strategy aims to:

Accepted Answer

Achieve the lowest cost structure in its industry to offer competitive prices and earn above-average profits

Answer

Cost leadership strategy, as defined by Porter, seeks to become the lowest-cost producer in an industry, enabling competitive pricing or higher margins than rivals.

Question 5

A key performance indicator (KPI) should be:

Accepted Answer

Specific, measurable, and directly tied to strategic objectives

Answer

Effective KPIs are specific, measurable, actionable metrics that are directly linked to strategic goals and reviewed regularly to track progress and drive accountability.

BEC - Business Environment and Concepts Practice Test

BEC - Business Environment and Concepts Practice Test

BEC Strategic Planning and Risk Management 1