SPP Strategic Analysis & Environmental Scanning 4

Question 1

During an industry life cycle analysis, which stage is characterized by slowing growth, consolidation among competitors, and emphasis on cost efficiency?

Accepted Answer

Maturity

Answer

In the maturity stage, market growth slows, weaker competitors exit, and surviving firms compete primarily on price and operational efficiency.

Question 2

A strategist performing stakeholder analysis assigns stakeholders to categories based on their level of power and interest. This technique is known as:

Accepted Answer

Power-interest grid

Answer

The power-interest grid (Mendelow's matrix) categorizes stakeholders by their power to influence the organization and their level of interest in it.

Question 3

Which of the following best describes 'competitive intelligence' in the context of environmental scanning?

Accepted Answer

The systematic collection and analysis of publicly available information about competitors and the competitive environment

Answer

Competitive intelligence uses ethical, legal means to gather and analyze information about competitors, customers, and the broader market.

Question 4

The 'VRIO' framework evaluates resources based on whether they are Valuable, Rare, Inimitable, and Organized. What does an asset that is Valuable but NOT Rare imply?

Accepted Answer

Competitive parity, not a source of advantage

Answer

A resource that is valuable but not rare is likely possessed by many competitors, resulting in competitive parity rather than advantage.

Question 5

Which environmental scanning technique involves systematically gathering expert opinions through multiple anonymous rounds of questionnaires with feedback?

Accepted Answer

Delphi method

Answer

The Delphi method uses structured, iterative expert surveys with anonymized feedback to build consensus on future trends and uncertainties.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Strategic Analysis & Environmental Scanning 4