OM Strategic Planning & Decision Making 2

Question 1

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

Accepted Answer

Strategic group map

Answer

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

Question 2

A company practicing 'satisficing' in decision making is:

Accepted Answer

Choosing the first option that meets a minimum acceptable threshold

Answer

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

Question 3

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

Accepted Answer

Shared values

Answer

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

Question 4

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

Accepted Answer

A probabilistic event outside the decision maker's control

Answer

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

Question 5

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

Accepted Answer

Creating uncontested market space through value innovation

Answer

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

(OM) Organizational Management Specialty Certification Practice Test