OM Strategic Planning & Decision Making 5

Question 1

In stakeholder analysis for strategic planning, the 'power-interest grid' is used to:

Accepted Answer

Prioritize stakeholders by their influence and level of concern in the strategy

Answer

The power-interest grid categorizes stakeholders by their power to affect the organization and their interest in its strategy, guiding engagement priorities.

Question 2

Which of the following best describes 'competitive convergence' as a strategic risk?

Accepted Answer

Multiple firms adopt similar strategies, eroding differentiation and industry profitability

Answer

Competitive convergence occurs when rivals imitate each other's best practices, causing strategies to blur and reducing overall industry profitability.

Question 3

A company performs a 'pre-mortem analysis' before launching a strategy in order to:

Accepted Answer

Proactively identify potential failure modes by imagining the strategy has already failed

Answer

A pre-mortem asks decision makers to assume failure has occurred and work backward to identify causes, surfacing risks before launch.

Question 4

The concept of 'dynamic capabilities' in strategic management refers to an organization's ability to:

Accepted Answer

Sense, seize, and reconfigure resources in response to environmental changes

Answer

Dynamic capabilities, developed by Teece et al., describe higher-order abilities to integrate, build, and reconfigure competencies as markets evolve.

Question 5

Which quantitative technique uses mathematical optimization to allocate scarce resources across competing strategic objectives?

Accepted Answer

Linear programming

Answer

Linear programming finds the optimal allocation of limited resources (such as budget, capacity, or labor) subject to defined constraints and objectives.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Strategic Planning & Decision Making 5