Strategic Planning & Leadership Flashcards
7 cards from real CBO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Planning & Leadership flashcards as text
A scenario planning exercise is MOST useful when:
Answer: There is significant uncertainty about multiple possible futures
Scenario planning helps organizations prepare for multiple plausible futures when uncertainty is high and linear forecasting is insufficient.
Which leadership behavior is MOST associated with building psychological safety in a team?
Answer: Encouraging team members to voice concerns without fear of punishment
Psychological safety, studied by Amy Edmondson, thrives when leaders actively encourage open dialogue and ensure no punishment for speaking up.
When a business adopts a 'market development' strategy, it is:
Answer: Entering new markets with existing products
Market development (Ansoff Matrix) means expanding the reach of existing products into new geographic or demographic markets.
A CBO identifies that the company is 'stuck in the middle' according to Porter. This means the company:
Answer: Has failed to achieve a clear competitive advantage in any generic strategy
Porter warned that companies that try to pursue multiple generic strategies simultaneously often end up with no clear advantage, a condition he called 'stuck in the middle.'
Which decision-making model assumes that decision-makers have limited information, time, and cognitive capacity?
Answer: Bounded rationality model
Herbert Simon's bounded rationality model recognizes that humans 'satisfice' (choose a good-enough option) rather than optimize due to real-world constraints.
A strategic alliance differs from a merger primarily because in a strategic alliance:
Answer: Companies collaborate on specific goals while remaining legally independent
A strategic alliance is a cooperative arrangement between legally separate firms, whereas a merger results in a single unified legal entity.
Which organizational structure BEST supports a company pursuing multiple distinct business strategies across different industries?
Answer: Divisional structure
A divisional structure organizes the company into semi-autonomous units, each capable of pursuing its own strategy suited to its specific market or industry.