Strategic Planning & Business Analysis Flashcards

A client's strategic plan was developed two years ago but market conditions have shifted dramatically. Which planning approach would BEST keep the strategy responsive to environmental changes?

Answer: Adopting rolling strategic planning with quarterly reviews

Rolling strategic planning with regular review cycles allows organizations to adapt strategy to changing conditions while maintaining directional coherence.

A consultant uses the 'Five Whys' technique during a root cause analysis session. The PRIMARY purpose of asking 'why' repeatedly is to:

Answer: Uncover the underlying systemic cause rather than addressing surface symptoms

The Five Whys technique iteratively drills down through symptom layers to reach the root systemic cause that, if addressed, prevents recurrence.

In strategic planning, 'scenario planning' is most valuable when:

Answer: There is significant uncertainty about which of several possible futures will occur

Scenario planning is designed for high-uncertainty environments where multiple plausible futures exist and strategy must be robust across different possibilities.

A consultant is preparing an executive summary of a strategic analysis. Which principle should govern the structure and content of this document?

Answer: Lead with conclusions and recommendations, supporting with key evidence

Executive summaries for senior audiences should lead with conclusions and recommendations (Pyramid Principle), with supporting evidence following for those who need it.

When a consultant applies 'value chain analysis' to a manufacturing client, the PRIMARY objective is to:

Answer: Identify activities that create competitive advantage and those that should be outsourced

Value chain analysis, developed by Porter, identifies which internal activities create strategic value and competitive differentiation versus those that are candidates for outsourcing.

A senior consultant is asked to assess whether a proposed merger creates strategic value. The concept of 'synergy' in M&A analysis refers to:

Answer: The combined entity creating more value than the sum of the two separate entities

Synergy in M&A means the combined organization generates greater value (revenue, cost efficiency, capabilities) than the two companies would produce independently.

A business analyst discovers that two departments have conflicting requirements for a shared enterprise system. The BEST resolution approach is to:

Answer: Facilitate a structured requirements prioritization session with both departments and a neutral decision authority

Structured prioritization with a neutral decision authority ensures conflicting requirements are resolved through a fair, transparent process that all stakeholders can accept.