CSM Strategic Planning & Analysis 2

Question 1

Which strategic analysis tool categorizes external factors into Political, Economic, Social, Technological, Environmental, and Legal dimensions?

Accepted Answer

PESTEL Analysis

Answer

PESTEL Analysis examines six macro-environmental factors that can affect an organization's strategy.

Question 2

In the context of strategic planning, what does 'competitive parity' mean for a software organization?

Accepted Answer

Matching competitors' capabilities to avoid disadvantage

Answer

Competitive parity means achieving at least the same level of performance as competitors so the organization is not at a strategic disadvantage.

Question 3

A software manager uses scenario planning primarily to:

Accepted Answer

Prepare strategies for multiple plausible future environments

Answer

Scenario planning helps managers prepare contingency strategies by exploring multiple plausible futures rather than relying on a single forecast.

Question 4

Which metric best measures the financial viability of a strategic software initiative by comparing expected benefits to costs over time?

Accepted Answer

Return on Investment (ROI)

Answer

ROI compares the financial gain from an initiative to its cost, making it the standard metric for evaluating financial viability.

Question 5

What is the primary purpose of a balanced scorecard in software management strategy?

Accepted Answer

Align business activities to vision across financial, customer, process, and learning perspectives

Answer

The balanced scorecard translates an organization's vision into a set of performance measures spanning four perspectives to ensure holistic alignment.

(CSM) Certified Software Manager Practice Test

(CSM) Certified Software Manager Practice Test

CSM Strategic Planning & Analysis 2