Strategic Planning & Execution Flashcards

When prioritizing strategic initiatives, a management team uses an impact-versus-effort matrix. Initiatives with HIGH impact and LOW effort should be:

Answer: Implemented first as 'quick wins'

High-impact, low-effort initiatives are 'quick wins' that deliver immediate value with minimal resource investment and should be executed first to build momentum.

A strategic review reveals that a business unit is generating strong cash flow but operates in a low-growth market. According to the BCG Matrix, this unit is classified as a:

Answer: Cash Cow

A Cash Cow has high market share in a low-growth market; it generates more cash than it consumes and funds other strategic investments.

Which of the following BEST illustrates 'emergent strategy' as opposed to 'deliberate strategy'?

Answer: A product pivot made in response to unexpected customer feedback

Emergent strategy arises from unplanned actions and organizational learning in response to real-world events, rather than from a pre-formulated plan.

An organization uses a 'strategy map' to communicate its strategic plan. The primary purpose of a strategy map is to:

Answer: Visually depict cause-and-effect relationships between strategic objectives

A strategy map, associated with the Balanced Scorecard framework, illustrates how strategic objectives in different perspectives connect through cause-and-effect linkages.

A CEO wants to ensure the organization's resources are allocated to support strategic priorities. The MOST effective mechanism for doing this is:

Answer: Linking the budgeting process directly to strategic initiatives

Integrating strategy with the budgeting process ensures that financial and human resources are directed toward the initiatives that matter most for strategic success.

What is the primary risk of a 'diversification' strategy according to the Ansoff Matrix?

Answer: High risk because the organization operates in an unfamiliar market with a new product

Diversification is the highest-risk Ansoff strategy because the company ventures into new markets with new products, lacking established expertise in both dimensions.

During strategy execution, 'accountability without authority' most commonly results in:

Answer: Frustration, disengagement, and stalled initiatives

When managers are held accountable for outcomes but lack the authority to direct resources or decisions, it creates frustration and impedes successful strategy execution.