Strategic Planning & Analysis Flashcards

Which Ansoff Matrix strategy involves selling new products into new markets?

Answer: Diversification

Diversification, the riskiest Ansoff option, combines new products with new markets.

The Pareto principle suggests that:

Answer: Roughly 80% of effects come from 20% of causes

The Pareto principle states that a small share of causes typically drives most of the outcomes.

Which measure shows the percentage return gained relative to the cost of an investment?

Answer: Return on investment (ROI)

ROI divides net gain by investment cost to show the return generated.

When performing a risk assessment, risk exposure is commonly calculated as:

Answer: Probability multiplied by impact

Risk exposure is typically the likelihood of an event multiplied by its potential impact.

A strategy map is mainly used to:

Answer: Visualize cause-and-effect links between strategic objectives

Strategy maps show how objectives across perspectives connect and drive one another.

Which statement best describes a vision statement?

Answer: A description of the organization's aspirational future state

A vision statement describes what the organization hopes to become or achieve in the future.

What is the purpose of a sensitivity analysis in strategic planning?

Answer: To see how changes in key assumptions affect outcomes

Sensitivity analysis tests how outcomes shift when key variables or assumptions change.