Strategic Planning & Leadership Flashcards

A core competency is best defined as:

Answer: A unique capability that provides competitive advantage across products or markets

Core competencies are hard-to-copy strengths that create value across the business.

Which of the following is a lagging indicator in a performance management system?

Answer: Quarterly net profit

Profit reports results after the fact, while the others predict future outcomes.

When a GM delegates a task effectively, which element must remain with the manager?

Answer: Ultimate accountability

Responsibility can be delegated but ultimate accountability stays with the manager.

Which strategic level typically defines how a business unit competes within a particular industry?

Answer: Business-level strategy

Business-level strategy addresses competitive positioning of a single unit or product line.

Resistance to change is most effectively reduced when leaders:

Answer: Involve employees early and explain the reasons for change

Participation and clear communication build understanding and ownership.

A vertical integration strategy in which a manufacturer acquires its raw-material supplier is called:

Answer: Backward integration

Moving upstream toward supply sources is backward integration.

What does a gap analysis in strategic planning compare?

Answer: Current performance with desired future performance

Gap analysis identifies the difference between where the organization is and where it wants to be.