CTA Strategic Planning & Business Model Assessment 2

Question 1

A 'value chain analysis' in turnaround planning is used to:

Accepted Answer

Identify where the company creates or destroys value across its operations, revealing restructuring opportunities

Answer

Value chain analysis pinpoints which operational activities generate competitive advantage and which destroy value, guiding decisions on what to fix, outsource, or eliminate.

Question 2

Which business model change is most commonly recommended when a turnaround company has high fixed costs and declining revenue?

Accepted Answer

Convert fixed costs to variable costs by outsourcing non-core activities

Answer

Shifting from fixed to variable costs reduces the breakeven point, giving the company more resilience against revenue volatility during the recovery period.

Question 3

In a turnaround, a 'platform business' strategy refers to:

Accepted Answer

Identifying a core product or service that multiple adjacent revenues can be built around

Answer

A platform strategy concentrates resources on a defensible core that can generate multiple revenue streams, creating value density rather than spreading resources thinly.

Question 4

What is a 'business interruption assessment' in a turnaround plan?

Accepted Answer

An analysis of which operations will be disrupted during restructuring and a plan to minimize customer and revenue impact

Answer

A business interruption assessment identifies restructuring activities that could damage customer relationships or operational continuity, allowing management to proactively mitigate those risks.

Question 5

Which strategic planning tool helps quantify the specific revenue or cost improvement needed to achieve financial viability in a turnaround?

Accepted Answer

Break-even analysis identifying the minimum performance required to cover all obligations

Answer

Break-even analysis establishes the minimum revenue level required to cover fixed and variable costs, creating a concrete financial target for the turnaround team.

CTA - Certified Turnaround Analyst Practice Test

CTA - Certified Turnaround Analyst Practice Test

CTA Strategic Planning & Business Model Assessment 2