OM Strategic Planning & Analysis 3

Question 1

Which strategy involves an organization expanding by acquiring or developing businesses in completely different industries from its core operations?

Accepted Answer

Conglomerate diversification

Answer

Conglomerate (unrelated) diversification involves entering industries entirely unrelated to current operations, primarily to spread risk or capitalize on financial opportunities.

Question 2

The 'strategic gap' in organizational planning refers to:

Accepted Answer

The difference between a firm's current position and its desired future position

Answer

A strategic gap is the difference between where an organization currently stands and where it wants to be, driving the need for strategic initiatives to close that gap.

Question 3

Which of the following best describes a 'cost leadership' generic strategy according to Porter?

Accepted Answer

Becoming the lowest-cost producer in an industry while maintaining acceptable margins

Answer

Cost leadership strategy aims to become the industry's lowest-cost producer, enabling competitive pricing or superior margins compared to rivals operating at similar prices.

Question 4

What does the acronym 'OKR' stand for in strategic performance management?

Accepted Answer

Objectives and Key Results

Answer

OKR stands for Objectives and Key Results, a goal-setting framework that links high-level aspirational objectives with specific, measurable outcomes to track progress.

Question 5

In stakeholder analysis, a stakeholder with HIGH power but LOW interest should be:

Accepted Answer

Kept satisfied with enough engagement to prevent negative interference

Answer

High-power, low-interest stakeholders should be kept satisfied to prevent them from becoming adversarial, without overwhelming them with unnecessary detail.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Strategic Planning & Analysis 3