Strategic Planning & Business Analysis Flashcards

A senior consultant is evaluating a client's strategic options using a decision matrix. Which criteria weighting approach BEST ensures objectivity in comparing dissimilar options?

Answer: Using a pairwise comparison method with cross-functional input

Pairwise comparison with diverse stakeholder input reduces individual bias and produces defensible, objective criteria weights for strategic decision matrices.

In business analysis, a 'context diagram' (Level 0 DFD) is most useful for:

Answer: Establishing system scope by depicting external entities and data flows at the highest level

A context diagram defines system boundaries by showing the system as a single process with its external entities and the data flowing between them.

A company's strategy emphasizes operational excellence as its primary value discipline. According to Treacy and Wiersema, this means the company competes primarily on:

Answer: Lowest total cost and streamlined processes

Treacy and Wiersema's Operational Excellence discipline focuses on delivering reliable products or services at the lowest cost through efficient, standardized processes.

During a strategic planning engagement, a consultant recommends a 'blue ocean strategy.' This advises the client to:

Answer: Create uncontested new market space by making competitors irrelevant

Blue Ocean Strategy, by Kim and Mauborgne, focuses on creating new demand in uncontested market space rather than competing in overcrowded 'red ocean' markets.

A consultant conducts a 'business model canvas' workshop with a startup client. The 'Value Proposition' block specifically answers which question?

Answer: What bundle of products/services creates value for each customer segment?

The Value Proposition block of the Business Model Canvas describes the unique value a company creates for specific customer segments through its products and services.

A senior consultant identifies that a client is suffering from 'analysis paralysis' during strategic planning. The BEST intervention is to:

Answer: Introduce a structured time-boxed decision framework with defined criteria

A time-boxed decision framework with pre-agreed criteria breaks analysis paralysis by creating accountability for decisions within defined constraints.

When validating a business case for a strategic investment, which metric measures the return generated relative to the investment cost, expressed as a percentage?

Answer: Return on Investment (ROI)

ROI expresses the net benefit of an investment as a percentage of its cost, making it the most direct measure of return relative to investment.