Strategic Planning & Decision Making Flashcards

Which strategic planning tool maps an organization's activities against industry rivals to identify competitive positioning?

Answer: Strategic group map

A strategic group map clusters competitors by similar strategic dimensions, revealing competitive positioning across the industry.

A company practicing 'satisficing' in decision making is:

Answer: Choosing the first option that meets a minimum acceptable threshold

Satisficing, a concept by Herbert Simon, means selecting the first option that satisfies minimum criteria rather than finding the optimal solution.

In the McKinsey 7-S framework, which element is considered the central connecting factor among all others?

Answer: Shared values

Shared values sit at the center of the 7-S model, interconnecting all seven elements and representing the organization's core culture and beliefs.

When using a decision tree for strategic choices, what does a 'chance node' (circle) represent?

Answer: A probabilistic event outside the decision maker's control

Chance nodes represent uncertain events with assigned probabilities, distinguishing them from decision nodes where managers choose.

A firm pursuing a 'blue ocean strategy' is primarily focused on:

Answer: Creating uncontested market space through value innovation

Blue ocean strategy, by Kim and Mauborgne, seeks to create new demand in uncontested market space rather than competing in existing industries.

Which type of organizational strategy focuses primarily on managing a portfolio of different business units?

Answer: Corporate-level strategy

Corporate-level strategy deals with the overall scope of the organization and how to manage multiple business units or product lines.

The 'Delphi method' is used in strategic planning primarily to:

Answer: Reach consensus among experts through structured anonymous rounds

The Delphi method gathers expert opinions through iterative anonymous questionnaires, reducing groupthink and building consensus.