TMA Introduction to Strategy 3

Question 1

Which of the following best describes 'strategic intent' in the context of corporate turnaround?

Accepted Answer

A clear, long-term aspirational goal that motivates the organization through adversity

Answer

Strategic intent provides a unifying long-term vision that guides the organization through the turnaround, motivating stakeholders beyond short-term metrics.

Question 2

The Balanced Scorecard in strategy execution measures performance across how many perspectives?

Accepted Answer

Four

Answer

The Balanced Scorecard uses four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.

Question 3

A turnaround manager who decides to exit unprofitable product lines is executing which type of strategic action?

Accepted Answer

Portfolio pruning / retrenchment

Answer

Exiting unprofitable lines is a retrenchment or portfolio pruning strategy, focusing the firm on its most viable activities.

Question 4

Which of the following scenarios best illustrates a 'turnaround trap' — a strategic mistake common in distressed companies?

Accepted Answer

Attempting too many strategic initiatives simultaneously, diluting resources

Answer

Pursuing too many initiatives at once is a classic turnaround trap — it spreads scarce resources too thin and prevents any single effort from succeeding.

Question 5

In the context of competitive strategy, 'competitive parity' means:

Accepted Answer

Meeting the minimum competitive standards required to remain in an industry

Answer

Competitive parity means matching rivals on necessary strategic dimensions so as not to be at a disadvantage, without necessarily exceeding them.

TMA - Turnaround Management Association Practice Test

TMA - Turnaround Management Association Practice Test

TMA Introduction to Strategy 3