SPP Strategic Analysis & Environmental Scanning 2

Question 1

Which PESTEL factor would a strategist consider when analyzing the impact of aging demographics on a healthcare company's long-term strategy?

Accepted Answer

Social

Answer

Aging demographics fall under the Social factor in PESTEL analysis, capturing population trends and cultural shifts.

Question 2

A firm conducts a competitive analysis and finds that switching costs for customers are very high. Under Porter's Five Forces, this most directly affects which force?

Accepted Answer

Bargaining power of buyers

Answer

High switching costs reduce buyers' bargaining power because customers are less able to move to competitors or alternatives.

Question 3

In scenario planning, what is the primary purpose of identifying 'driving forces' during the environmental scanning process?

Accepted Answer

To determine which trends and uncertainties will shape future scenarios

Answer

Driving forces are key trends and uncertainties that scenario planners use to construct plausible future environments.

Question 4

What does the term 'strategic inflection point' (as coined by Andy Grove) refer to in environmental scanning?

Accepted Answer

A point where the balance of competitive forces shifts dramatically, requiring strategy change

Answer

A strategic inflection point is when fundamental forces affecting a business change so dramatically that the existing strategy must be reconsidered.

Question 5

Which analysis technique maps an organization's capabilities against competitor capabilities to reveal relative strengths and gaps?

Accepted Answer

Competitive benchmarking

Answer

Competitive benchmarking systematically compares the firm's capabilities and performance metrics against those of key rivals.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Strategic Analysis & Environmental Scanning 2