SPP Strategic Analysis & Environmental Scanning 3

Question 1

Which of the following best describes 'environmental turbulence' in strategic planning contexts?

Accepted Answer

The degree of instability, complexity, and unpredictability in the external environment

Answer

Environmental turbulence refers to the rate and unpredictability of change in an organization's external environment, affecting how strategies must be formulated.

Question 2

A strategist uses a 'five forces' analysis and finds that the industry has low barriers to entry and many undifferentiated products. What strategic implication does this most likely signal?

Accepted Answer

Profitability in the industry is likely to be low and competition intense

Answer

Low entry barriers combined with undifferentiated products typically intensify rivalry and suppress industry profitability.

Question 3

What is the key distinction between 'monitoring' and 'scanning' in environmental analysis?

Accepted Answer

Scanning searches broadly for emerging trends; monitoring tracks specific identified trends over time

Answer

Environmental scanning casts a wide net to detect new trends, while monitoring involves ongoing tracking of previously identified trends.

Question 4

In a value chain analysis, 'primary activities' directly involved in creating and delivering a product include all of the following EXCEPT:

Accepted Answer

Human resource management

Answer

Human resource management is a support activity in Porter's value chain, not a primary activity.

Question 5

Which scenario planning approach involves identifying two critical uncertainties and constructing four distinct scenarios at their intersections?

Accepted Answer

Two-axis scenario matrix

Answer

The two-axis scenario matrix plots two key uncertainties on perpendicular axes to generate four distinct, plausible future scenarios.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Strategic Analysis & Environmental Scanning 3