CMC Strategic Planning & Organizational Development 3

Question 1

A CMC consultant recommends redesigning a client's organization around customer segments rather than functional departments. This is an example of transitioning to which structure?

Accepted Answer

Divisional (market-based) structure

Answer

A divisional structure organized by customer segment groups all resources and activities needed to serve a particular market, improving customer responsiveness.

Question 2

In VRIO analysis, a resource that is valuable and rare but easily imitated provides a firm with:

Accepted Answer

Temporary competitive advantage

Answer

VRIO logic states that without inimitability (and organizational support), a rare and valuable resource yields only a temporary advantage before competitors replicate it.

Question 3

An organization using OKRs (Objectives and Key Results) correctly should set key results that are:

Accepted Answer

Measurable outcomes that indicate progress toward the objective

Answer

Key results in the OKR framework must be quantifiable outcome indicators — not tasks or activities — that verify whether the objective was achieved.

Question 4

When applying Lewin's Force Field Analysis, a management consultant would recommend strengthening driving forces OR:

Accepted Answer

Reducing or removing restraining forces

Answer

Lewin's model shows that change occurs when driving forces exceed restraining forces; removing barriers is often more effective than simply adding more pressure to drive change.

Question 5

A strategic alliance differs from a merger primarily because:

Accepted Answer

Partners in an alliance retain independent legal identities and share only specific activities

Answer

In a strategic alliance, each organization remains legally separate and collaborates on defined activities, whereas a merger combines entities into a single new organization.

(CMC) Chartered Management Consultant Practice Test

(CMC) Chartered Management Consultant Practice Test

CMC Strategic Planning & Organizational Development 3