Strategic Planning & Analysis Flashcards

Which competitive strategy focuses on offering the lowest price in the market by minimizing operational costs?

Answer: Cost leadership strategy

Cost leadership strategy aims to become the lowest-cost producer in an industry, enabling competitive pricing while maintaining margins.

An operations manager reviewing the external environment would use PESTLE analysis to examine:

Answer: Political, Economic, Social, Technological, Legal, and Environmental factors

PESTLE analysis scans the macro-environment across six dimensions to identify external opportunities and threats.

In the context of strategic planning, 'core competencies' refer to:

Answer: Unique capabilities that provide competitive advantage and are hard to imitate

Core competencies are distinctive strengths deeply embedded in the organization that competitors cannot easily replicate.

A company implementing an Ansoff Matrix chooses 'market development' when it:

Answer: Sells existing products to new markets or customer segments

Market development means taking existing products into new geographic or demographic markets to drive growth.

Which planning horizon is typically associated with operational planning as opposed to strategic planning?

Answer: Less than 1 year

Operational planning typically covers short-term horizons (weeks to one year), while strategic planning spans three to five or more years.

A 'first-mover advantage' in strategic planning means:

Answer: Gaining a competitive edge by being first to enter a new market or adopt new technology

First-mover advantage allows a company to establish brand recognition, customer loyalty, and market share before competitors enter.

Which financial metric is most commonly used to evaluate the attractiveness of a strategic investment during analysis?

Answer: Return on Investment (ROI)

ROI measures the profitability of an investment relative to its cost, making it a standard metric for evaluating strategic options.