Practice Test Geeks(CMC) Chartered Management Consultant Practice Test
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Strategic Planning & Organizational Development Flashcards

7 cards from real CMC 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 & Organizational Development flashcards as text

  1. A business unit that holds low market share in a low-growth market is classified in the BCG matrix as a:

    Answer: Dog

    The BCG matrix labels low-share, low-growth units as 'dogs' — they generate little cash and typically warrant divestiture or harvesting strategies.

  2. Which strategic planning horizon is typically associated with an organization's operational plans?

    Answer: 1–3 years

    Operational plans typically span one to three years, translating medium-term strategic goals into specific departmental actions and resource allocations.

  3. In a McKinsey 7-S framework assessment, which element is considered the 'superordinate goal' that aligns all other elements?

    Answer: Shared values

    In the 7-S model, 'shared values' (originally called superordinate goals) sit at the center and connect all other six elements, guiding organizational behavior.

  4. A firm decides to exit a low-performing division by selling it to its management team. This is called:

    Answer: Management buyout (MBO)

    A management buyout occurs when the existing management team purchases the business unit, typically with financial backing from private equity.

  5. The concept of 'strategic intent' as defined by Hamel and Prahalad refers to:

    Answer: An ambitious long-term goal that stretches the organization beyond its current resources

    Hamel and Prahalad's strategic intent is a bold, inspiring aspiration — such as Komatsu's 'Encircle Caterpillar' — that motivates and focuses organizational effort over the long term.

  6. During an organizational diagnosis, a consultant finds that two departments have conflicting KPIs that undermine cross-functional collaboration. The root cause is most likely a flaw in:

    Answer: Performance management system design

    Misaligned KPIs across departments indicate a performance management design failure where individual unit metrics are not integrated to support overall organizational goals.

  7. Which growth strategy carries the highest risk according to the Ansoff Matrix?

    Answer: Diversification

    Diversification — entering new markets with new products — is the highest-risk Ansoff quadrant because the firm lacks both market knowledge and product experience simultaneously.