CSS CSS Strategic Planning 3 — Questions and Answers
Question 1: In the SMART framework for objectives, what does the 'A' commonly stand for?
- Achievable (Correct answer)
- Abstract
- Annual
- Aggressive
Correct answer: Achievable
SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound.
Question 2: What distinguishes a mission statement from a vision statement?
- The mission states current purpose while the vision describes the future aspiration (Correct answer)
- They are interchangeable terms
- The mission is always longer than the vision
- The vision focuses only on profit
Correct answer: The mission states current purpose while the vision describes the future aspiration
A mission defines the organization's present purpose; a vision describes its desired future.
Question 3: Which tool maps competitive forces such as supplier power and threat of new entrants?
- Porter's Five Forces (Correct answer)
- Gantt chart
- Balance sheet
- Org chart
Correct answer: Porter's Five Forces
Porter's Five Forces analyzes industry competition including supplier power and new entrants.
Question 4: What is the purpose of a gap analysis in strategic planning?
- To compare current performance against desired future state and identify shortfalls (Correct answer)
- To increase the number of meetings
- To eliminate the budget entirely
- To rename the organization
Correct answer: To compare current performance against desired future state and identify shortfalls
Gap analysis identifies the difference between where an organization is and where it wants to be.
Question 5: A balanced scorecard typically measures performance across how many key perspectives?
- Four: financial, customer, internal process, and learning/growth (Correct answer)
- One: financial only
- Two: sales and marketing
- Ten: one per department
Correct answer: Four: financial, customer, internal process, and learning/growth
The balanced scorecard uses four perspectives to give a rounded view of performance.
Question 6: Why should strategic plans include a review and revision cycle?
- Because conditions change and plans must adapt to remain relevant (Correct answer)
- Because plans should never change once written
- To make the document longer
- To avoid involving stakeholders
Correct answer: Because conditions change and plans must adapt to remain relevant
Regular review lets organizations adjust strategy as internal and external conditions evolve.
Question 7: What is a key performance indicator (KPI) used for?
- Quantifying progress toward a specific strategic objective (Correct answer)
- Decorating the annual report
- Replacing the mission statement
- Tracking only employee attendance
Correct answer: Quantifying progress toward a specific strategic objective
KPIs are measurable values showing how effectively objectives are being achieved.
CSS CSS Strategic Planning 3
In the SMART framework for objectives, what does the 'A' commonly stand for?