OM Strategic Planning & Analysis 2

Question 1

Which analytical tool maps an organization's activities along a series of steps to identify where value is added and where costs are incurred?

Accepted Answer

Value Chain Analysis

Answer

Value Chain Analysis, developed by Michael Porter, breaks down organizational activities into primary and support activities to identify sources of competitive advantage.

Question 2

An organization's mission statement primarily serves to:

Accepted Answer

Articulate the fundamental purpose and reason for the organization's existence

Answer

A mission statement defines the organization's core purpose, what it does, who it serves, and why it exists, providing direction for all strategic decisions.

Question 3

In a PESTLE analysis, the 'L' factor refers to:

Accepted Answer

Legal and regulatory considerations affecting the business

Answer

The 'L' in PESTLE stands for Legal factors, encompassing laws, regulations, court rulings, and compliance requirements that affect organizational operations.

Question 4

Which portfolio analysis tool classifies business units into 'Stars,' 'Cash Cows,' 'Question Marks,' and 'Dogs' based on market share and market growth?

Accepted Answer

BCG Growth-Share Matrix

Answer

The BCG (Boston Consulting Group) Growth-Share Matrix uses market growth rate and relative market share to categorize business units for portfolio management decisions.

Question 5

Scenario planning in strategic management is best described as:

Accepted Answer

Developing multiple plausible future stories to prepare for uncertainty

Answer

Scenario planning constructs several distinct, plausible future environments to help organizations develop flexible strategies that can succeed under different conditions.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Strategic Planning & Analysis 2