COM Strategic Planning & Analysis 3

Question 1

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

Accepted Answer

Cost leadership strategy

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Unique capabilities that provide competitive advantage and are hard to imitate

Answer

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

Question 4

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

Accepted Answer

Sells existing products to new markets or customer segments

Answer

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

Question 5

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

Accepted Answer

Less than 1 year

Answer

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

(COM) Certified Operations Manager Practice Test