Strategic Planning & Leadership Flashcards

Which of Porter's Five Forces describes the ability of customers to demand lower prices or higher quality?

Answer: Bargaining power of buyers

Buyer power is the leverage customers have to push prices down or demand more value.

In the BCG growth-share matrix, a business unit with high market share in a low-growth market is called a:

Answer: Cash cow

Cash cows generate more cash than they need to sustain, funding other units.

Which element of a SWOT analysis refers to external conditions the company can exploit?

Answer: Opportunities

Opportunities are favorable external factors, while strengths and weaknesses are internal.

A general manager who sets a compelling vision and inspires employees to exceed self-interest is practicing which style?

Answer: Transformational leadership

Transformational leaders motivate through vision, inspiration and individual consideration.

Which Ansoff Matrix strategy involves selling new products into new markets?

Answer: Diversification

Diversification is the highest-risk quadrant because both product and market are new.

The primary purpose of a mission statement is to:

Answer: Define the organization's core purpose and who it serves

A mission statement articulates why the organization exists and whom it serves.

Which Balanced Scorecard perspective measures items such as employee skills, systems and culture?

Answer: Learning and growth

Learning and growth covers the intangible capabilities that drive future performance.