MR Strategic Planning and Decision Making 3 — Questions and Answers
Question 1: Which approach to decision making relies on the decision maker's experience, feelings, and accumulated judgment rather than systematic analysis?
- Rational model
- Evidence-based decision making
- Intuitive decision making (Correct answer)
- Nominal group technique
Correct answer: Intuitive decision making
Intuitive decision making relies on gut feelings and subconscious pattern recognition developed through experience, particularly useful in time-pressured situations.
Question 2: What is the primary purpose of a strategic management system's environmental scanning process?
- To comply with environmental regulations
- To identify internal financial risks only
- To monitor internal and external factors that affect strategy (Correct answer)
- To benchmark against ISO 14001 standards
Correct answer: To monitor internal and external factors that affect strategy
Environmental scanning systematically monitors internal and external factors—political, economic, social, technological, legal, and competitive—that could impact strategic plans.
Question 3: A Management Representative must prioritize competing strategic initiatives with limited resources. Which tool is most appropriate for ranking options based on multiple weighted criteria?
- Pareto chart
- Weighted decision matrix (Correct answer)
- Ishikawa diagram
- Run chart
Correct answer: Weighted decision matrix
A weighted decision matrix scores each option against criteria that are assigned importance weights, allowing objective comparison of competing alternatives.
Question 4: Which strategic planning concept refers to the range of products, markets, and geographies an organization chooses to compete in?
- Strategic intent
- Competitive positioning
- Strategic scope (Correct answer)
- Value proposition
Correct answer: Strategic scope
Strategic scope defines the boundaries of where an organization competes, including which products it offers, which customer segments it serves, and which geographic markets it enters.
Question 5: When a Management Representative escalates a decision to senior leadership, this is most appropriate when:
- Any uncertainty exists in the process
- The decision exceeds their authority or has enterprise-wide impact (Correct answer)
- The decision involves more than two stakeholders
- All decisions should go to senior leadership
Correct answer: The decision exceeds their authority or has enterprise-wide impact
Escalation is appropriate when a decision exceeds the MR's delegated authority, carries significant organizational risk, or has implications beyond the QMS scope.
Question 6: Which of the following is a characteristic of a 'wicked problem' in strategic decision making?
- It has a clear, definitive solution
- It is easy to measure with quantitative data
- It is unique, complex, and has no definitive solution (Correct answer)
- It can be solved using standard operating procedures
Correct answer: It is unique, complex, and has no definitive solution
Wicked problems are complex, interconnected challenges with no single correct solution—each attempt to solve them reveals new aspects and consequences.
Question 7: In strategic planning, 'blue ocean strategy' refers to:
- Competing aggressively in existing high-demand markets
- Creating new, uncontested market space where competition is irrelevant (Correct answer)
- Following industry best practices to reduce costs
- Forming alliances with competitors to share markets
Correct answer: Creating new, uncontested market space where competition is irrelevant
Blue ocean strategy focuses on creating new market demand in uncontested space rather than competing in saturated existing markets ('red oceans').
MR Strategic Planning and Decision Making 3
Which approach to decision making relies on the decision maker's experience, feelings, and accumulated judgment rather than systematic analysis?