CME Strategic Planning & Execution 3 — Questions and Answers
Question 1: What does the acronym 'OKR' stand for in the context of strategic goal-setting frameworks?
- Operational Key Results
- Objectives and Key Results (Correct answer)
- Outcome-based Key Ratios
- Organizational Knowledge Repository
Correct answer: Objectives and Key Results
OKR stands for Objectives and Key Results, a goal-setting framework that pairs ambitious qualitative objectives with measurable quantitative key results.
Question 2: A strategic plan identifies an opportunity to enter a new geographic market. Which analytical tool would BEST help assess the macro-environmental factors of that market?
- Porter's Five Forces
- PESTLE Analysis (Correct answer)
- Value Chain Analysis
- Ansoff Matrix
Correct answer: PESTLE Analysis
PESTLE Analysis examines Political, Economic, Social, Technological, Legal, and Environmental factors, making it ideal for assessing macro-environmental conditions in a new market.
Question 3: In strategic planning, a 'stretch goal' is best characterized as:
- A goal deliberately set below current performance to build confidence
- An aspirational target that requires significant change and innovation to achieve (Correct answer)
- A goal linked to employee bonus compensation
- A short-term operational milestone
Correct answer: An aspirational target that requires significant change and innovation to achieve
Stretch goals are ambitious targets set significantly beyond current performance levels, designed to drive breakthrough thinking and transformational change.
Question 4: Which of the following BEST describes the role of scenario planning in strategic management?
- Creating a single detailed plan for the most likely future
- Developing multiple plausible future narratives to stress-test strategy (Correct answer)
- Allocating resources based on historical performance data
- Setting annual department budgets
Correct answer: Developing multiple plausible future narratives to stress-test strategy
Scenario planning develops several plausible alternative futures to help organizations test the robustness of their strategy and prepare contingency responses.
Question 5: The Ansoff Matrix suggests that a company selling existing products to new customer segments is pursuing which growth strategy?
- Market Penetration
- Product Development
- Market Development (Correct answer)
- Diversification
Correct answer: Market Development
Market Development involves taking existing products into new markets or customer segments, which carries moderate risk compared to diversification.
Question 6: A company's strategy execution fails primarily because employees do not understand their role in achieving strategic goals. This failure is MOST attributed to a breakdown in:
- Financial planning
- Strategic communication and cascading (Correct answer)
- Competitive intelligence gathering
- Product development processes
Correct answer: Strategic communication and cascading
Effective strategy execution requires clear communication that cascades strategic priorities down through all organizational levels so employees understand how their work contributes.
Question 7: Which of the following BEST describes 'core competency' as used in strategic planning?
- A minimum job qualification required for all employees
- A unique bundle of skills and technologies that provides competitive advantage (Correct answer)
- The financial strength of the organization's balance sheet
- Regulatory compliance capabilities
Correct answer: A unique bundle of skills and technologies that provides competitive advantage
A core competency, as defined by Prahalad and Hamel, is a unique combination of skills and technologies that competitors cannot easily replicate and that creates value for customers.
CME Strategic Planning & Execution 3
What does the acronym 'OKR' stand for in the context of strategic goal-setting frameworks?