BSE Bachelor of Science in Engineering Management: Strategic Decision Making 3

Question 1

Which strategic analysis tool evaluates a firm's internal capabilities and external environment by categorizing factors as Strengths, Weaknesses, Opportunities, and Threats?

Accepted Answer

SWOT analysis

Answer

SWOT analysis organizes internal factors (Strengths, Weaknesses) and external factors (Opportunities, Threats) to inform strategic decision making.

Question 2

An engineering firm faces a 'wicked problem'—one that is complex, interdependent, and has no single correct solution. The BEST strategic approach is to:

Accepted Answer

Use iterative, adaptive approaches with stakeholder collaboration

Answer

Wicked problems require iterative, collaborative approaches because they are ill-defined, interdependent, and evolve as stakeholders and conditions change.

Question 3

In the context of strategic decision making, 'scenario planning' is best described as:

Accepted Answer

Developing multiple plausible future states to test strategy robustness

Answer

Scenario planning constructs multiple distinct future narratives to evaluate how well strategies perform across a range of possible conditions, improving strategic resilience.

Question 4

A manager applies a maximin decision rule to a payoff table under uncertainty. This means the manager will:

Accepted Answer

Choose the alternative with the best worst-case payoff

Answer

The maximin rule (maximize the minimum) is a conservative strategy that selects the option whose worst possible outcome is better than the worst outcomes of all alternatives.

Question 5

When engineering managers use 'real options analysis' for capital investment decisions, the key advantage over standard NPV is:

Accepted Answer

It explicitly values managerial flexibility to adapt decisions as uncertainty resolves

Answer

Real options analysis captures the value of managerial flexibility—such as options to expand, defer, or abandon a project—which static NPV calculations ignore.

BSE - Mgt Bachelor of Science in Engineering Management Practice Test

BSE - Mgt Bachelor of Science in Engineering Management Practice Test

BSE Bachelor of Science in Engineering Management: Strategic Decision Making 3