CBO Strategic Planning & Leadership 2

Question 1

A business operator conducts a PESTEL analysis. Which factor would include changes in minimum wage laws?

Accepted Answer

Legal

Answer

Minimum wage laws fall under the Legal category of PESTEL because they are statutory regulations imposed by government.

Question 2

Which leadership style is MOST effective when employees are highly skilled but lack motivation?

Accepted Answer

Participative

Answer

Participative (democratic) leadership engages skilled but unmotivated employees by involving them in decision-making, boosting ownership and commitment.

Question 3

A company's strategic plan sets a goal to increase market share by 15% in three years. This is an example of a:

Accepted Answer

Strategic objective

Answer

A strategic objective is a specific, measurable long-term goal that supports the broader mission and vision of the organization.

Question 4

When evaluating strategic alternatives, the concept of 'sustainable competitive advantage' means the business:

Accepted Answer

Maintains superior value delivery that rivals cannot easily replicate

Answer

Sustainable competitive advantage refers to long-term superior value creation through resources or capabilities that competitors cannot quickly imitate.

Question 5

In Kotter's 8-Step Change Model, what must leaders do BEFORE creating a vision for change?

Accepted Answer

Form a powerful coalition

Answer

Kotter's model requires establishing a guiding coalition (step 2) before developing the change vision (step 3) to ensure leadership alignment and credibility.

(CBO) Certified Business Operator Practice Test

(CBO) Certified Business Operator Practice Test

CBO Strategic Planning & Leadership 2