MR Strategic Planning and Decision Making 2 — Questions and Answers
Question 1: Which strategic planning tool uses four quadrants to categorize products based on market growth rate and relative market share?
- BCG Matrix (Correct answer)
- SWOT Analysis
- Balanced Scorecard
- Porter's Five Forces
Correct answer: BCG Matrix
The BCG Matrix (Boston Consulting Group) categorizes products as Stars, Cash Cows, Question Marks, or Dogs based on market growth and market share.
Question 2: In the context of strategic planning, what does 'scenario planning' primarily help organizations do?
- Eliminate all business risks
- Prepare for multiple possible future states (Correct answer)
- Predict the exact future with precision
- Reduce headcount during uncertainty
Correct answer: Prepare for multiple possible future states
Scenario planning helps organizations prepare strategic responses to multiple plausible future environments rather than relying on a single forecast.
Question 3: A Management Representative is reviewing the organization's strategic objectives. Which SMART criterion ensures an objective can be evaluated to determine if it was achieved?
- Specific
- Measurable (Correct answer)
- Achievable
- Time-bound
Correct answer: Measurable
The Measurable criterion ensures that progress toward an objective can be tracked and success can be objectively determined.
Question 4: Which decision-making model assumes that decision makers have complete information and will choose the option that maximizes utility?
- Bounded rationality model
- Intuitive model
- Rational model (Correct answer)
- Garbage can model
Correct answer: Rational model
The rational model assumes complete information availability, clear objectives, and selection of the optimal solution—an idealized view of decision making.
Question 5: When conducting a gap analysis in strategic planning, what are you comparing?
- Current state vs. desired future state (Correct answer)
- Internal strengths vs. external threats
- Short-term vs. long-term goals
- Budget projections vs. actual spending
Correct answer: Current state vs. desired future state
Gap analysis compares the current state of the organization to the desired future state, identifying what needs to change to close the gap.
Question 6: Which of the following best describes a 'lagging indicator' in strategic performance measurement?
- A metric that predicts future performance
- A metric that measures outcomes after they occur (Correct answer)
- A leading benchmark used for competitive comparison
- A real-time dashboard showing current operations
Correct answer: A metric that measures outcomes after they occur
Lagging indicators measure outcomes that have already occurred, such as annual revenue or customer satisfaction scores from completed surveys.
Question 7: In strategic planning, 'core competencies' are best described as:
- Basic operational tasks all companies must perform
- Unique capabilities that provide competitive advantage (Correct answer)
- Minimum compliance requirements for industry regulations
- Skills that can be easily outsourced to third parties
Correct answer: Unique capabilities that provide competitive advantage
Core competencies are the distinctive capabilities, knowledge, or skills that give an organization a sustainable competitive advantage over rivals.
MR Strategic Planning and Decision Making 2
Which strategic planning tool uses four quadrants to categorize products based on market growth rate and relative market share?