Strategic Planning & Business Model Assessment Flashcards
6 cards from real CTA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Strategic Planning & Business Model Assessment flashcards as text
A 'value chain analysis' in turnaround planning is used to:
Answer: Identify where the company creates or destroys value across its operations, revealing restructuring opportunities
Value chain analysis pinpoints which operational activities generate competitive advantage and which destroy value, guiding decisions on what to fix, outsource, or eliminate.
Which business model change is most commonly recommended when a turnaround company has high fixed costs and declining revenue?
Answer: Convert fixed costs to variable costs by outsourcing non-core activities
Shifting from fixed to variable costs reduces the breakeven point, giving the company more resilience against revenue volatility during the recovery period.
In a turnaround, a 'platform business' strategy refers to:
Answer: Identifying a core product or service that multiple adjacent revenues can be built around
A platform strategy concentrates resources on a defensible core that can generate multiple revenue streams, creating value density rather than spreading resources thinly.
What is a 'business interruption assessment' in a turnaround plan?
Answer: An analysis of which operations will be disrupted during restructuring and a plan to minimize customer and revenue impact
A business interruption assessment identifies restructuring activities that could damage customer relationships or operational continuity, allowing management to proactively mitigate those risks.
Which strategic planning tool helps quantify the specific revenue or cost improvement needed to achieve financial viability in a turnaround?
Answer: Break-even analysis identifying the minimum performance required to cover all obligations
Break-even analysis establishes the minimum revenue level required to cover fixed and variable costs, creating a concrete financial target for the turnaround team.
In a turnaround strategic plan, 'quick wins' are important because:
Answer: They build organizational credibility and stakeholder confidence early in the process
Early visible wins demonstrate momentum and management competence, which is critical for maintaining employee morale and stakeholder support during a lengthy restructuring.