OM Strategic Planning & Analysis 4

Question 1

The VRIO framework assesses whether a resource provides sustained competitive advantage by evaluating its:

Accepted Answer

Value, Rarity, Imitability, and Organization

Answer

VRIO asks whether a resource is Valuable (exploits opportunities), Rare (not widely held), costly to Imitate, and supported by the Organization to sustain competitive advantage.

Question 2

In strategic planning, 'emergent strategy' contrasts with 'deliberate strategy' in that it:

Accepted Answer

Arises organically from day-to-day decisions and adaptations not originally planned

Answer

Emergent strategy, identified by Henry Mintzberg, develops from unplanned actions and patterns that arise in response to real conditions rather than from a formal planning process.

Question 3

Which of the following is an example of a 'backward vertical integration' strategy?

Accepted Answer

A retailer acquiring a supplier of its raw materials

Answer

Backward vertical integration occurs when a company acquires or develops operations that were previously performed by its suppliers, moving toward the start of the supply chain.

Question 4

A 'turnaround strategy' is most appropriately deployed when an organization:

Accepted Answer

Faces serious performance decline and needs to reverse negative trends quickly

Answer

A turnaround strategy is used to reverse declining performance through cost cutting, restructuring, divestiture of underperforming units, and refocusing on core strengths.

Question 5

What is the primary purpose of a 'strategic alliance' between two organizations?

Accepted Answer

To share resources, capabilities, or risks while each party maintains independence

Answer

Strategic alliances allow organizations to collaborate on specific initiatives—sharing technology, market access, or risk—without the full commitment or cost of a merger.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Strategic Planning & Analysis 4