CME Strategic Planning & Execution 2

Question 1

Which strategic planning tool maps an organization's activities to identify where value is created and competitive advantage can be built?

Accepted Answer

Value Chain Analysis

Answer

Value Chain Analysis, developed by Michael Porter, breaks down organizational activities into primary and support activities to identify sources of competitive advantage.

Question 2

A company sets a strategic goal to increase market share by 15% over three years. Which element of the Balanced Scorecard would this goal fall under?

Accepted Answer

Customer Perspective

Answer

Market share is a customer-facing metric that reflects how well the company is acquiring and retaining customers, placing it in the Customer Perspective.

Question 3

What is the primary purpose of conducting a competitive analysis during the strategic planning process?

Accepted Answer

To understand rivals' strengths, weaknesses, and strategies

Answer

Competitive analysis helps organizations understand the landscape of rivals, enabling them to differentiate their strategy and anticipate competitive moves.

Question 4

A firm pursues a strategy of offering the lowest prices in the industry while maintaining acceptable quality. According to Porter's Generic Strategies, this is best described as:

Accepted Answer

Cost Leadership Strategy

Answer

Cost Leadership Strategy involves becoming the lowest-cost producer in an industry to compete on price while still generating profit.

Question 5

During strategy execution, a manager notices that actual results consistently lag behind targets. The FIRST corrective action should be to:

Accepted Answer

Analyze root causes of the performance gap

Answer

Diagnosing root causes is essential before taking corrective action, as the gap could stem from flawed assumptions, poor execution, or external factors.

(CME) Certified Management Executive Practice Test

(CME) Certified Management Executive Practice Test

CME Strategic Planning & Execution 2