CSM Strategic Planning & Implementation 2 — Questions and Answers
Question 1: Which framework uses 'Strengths, Weaknesses, Opportunities, and Threats' to evaluate a firm's strategic position?
- PEST Analysis
- SWOT Analysis (Correct answer)
- BCG Matrix
- Porter's Five Forces
Correct answer: SWOT Analysis
SWOT Analysis systematically examines internal strengths and weaknesses alongside external opportunities and threats to inform strategic decisions.
Question 2: A company sets a goal to 'increase market share by 10% within 18 months.' This is best described as a:
- Strategic vision
- Mission statement
- SMART objective (Correct answer)
- Core competency
Correct answer: SMART objective
SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound — this goal meets all five criteria.
Question 3: In strategic planning, 'emergent strategy' refers to:
- A strategy deliberately designed by top management
- Strategies that arise from unplanned actions and responses over time (Correct answer)
- An urgent turnaround plan during a crisis
- A strategy focused on entering emerging markets
Correct answer: Strategies that arise from unplanned actions and responses over time
Emergent strategy, as described by Mintzberg, develops organically through day-to-day decisions rather than being formally pre-planned.
Question 4: Which of the following best describes a 'strategic gap' in implementation?
- The difference between competitors' capabilities and your own
- The difference between intended strategic goals and actual performance (Correct answer)
- The gap in a company's product portfolio
- A missing link in the supply chain
Correct answer: The difference between intended strategic goals and actual performance
A strategic gap identifies where current performance falls short of the intended strategy, signaling where implementation efforts must focus.
Question 5: The Balanced Scorecard was developed primarily to address which limitation of traditional performance measurement?
- Over-reliance on non-financial metrics
- Excessive focus on short-term financial results (Correct answer)
- Lack of employee participation in goal-setting
- Inability to measure customer satisfaction
Correct answer: Excessive focus on short-term financial results
Kaplan and Norton created the Balanced Scorecard to complement financial measures with customer, internal process, and learning perspectives.
Question 6: During strategy implementation, 'resource allocation' primarily involves:
- Recruiting the right talent for strategy execution
- Distributing financial, human, and physical assets to support strategic priorities (Correct answer)
- Outsourcing non-core activities to reduce costs
- Setting departmental budgets based on historical spending
Correct answer: Distributing financial, human, and physical assets to support strategic priorities
Effective resource allocation ensures that the right financial, human, and operational resources are directed toward activities that advance strategic goals.
Question 7: A 'strategy map' in the Balanced Scorecard framework visually represents:
- The geographic markets targeted for expansion
- The cause-and-effect relationships between strategic objectives across four perspectives (Correct answer)
- A matrix of product lines vs. customer segments
- The organizational hierarchy for strategic decision-making
Correct answer: The cause-and-effect relationships between strategic objectives across four perspectives
A strategy map shows how learning and growth initiatives support internal processes, which in turn drive customer outcomes and ultimately financial results.
CSM Strategic Planning & Implementation 2
Which framework uses 'Strengths, Weaknesses, Opportunities, and Threats' to evaluate a firm's strategic position?