Question 1

Which of the following are common managerial decision-making biases?
A) a long run view
B) inertia
C) information anchoring
D) all of the above

Accepted Answer

C

Question 2

Which of the following is not an element of a business-level strategic plan?
A) industry analysis
B) operating goals
C) SWOT analysis
D) specific programs

Accepted Answer

SWOT analysis is a tool used in the formulation of strategy, but it is not an element of a business-level strategic plan. It is used to assess the company's internal strengths and weaknesses, and its external opportunities and threats, which informs but does not constitute the strategic plan itself.

Question 3

Competitor analysis typically deals with:
A) forecasts of the strategic behavior of rivals
B) industry disruption
C) understanding the industry's key value and cost drivers
D) all of the above

Accepted Answer

Competitor analysis encompasses forecasts of rivals' strategic behavior, understanding industry disruptions, and identifying key value and cost drivers within the industry.

Question 4

Goal setting is a more effective tool for planning than SWOT analysis because:
A) goal setting starts where SWOT ends
B) the SWOT process delays decision making
C) a SWOT analysis offers no direction to a firm
D) all of the above

Accepted Answer

Goal setting provides direction and benchmarks for success, building on the insights from a SWOT analysis. SWOT analysis identifies strengths, weaknesses, opportunities, and threats but doesn't set specific goals or directions, which can delay decision-making without a subsequent goal-setting process.

Question 5

Which of the following are key benchmarks for setting financial goals?
A) the firm's historical performance
B) the performance of competitors
C) neither of the above
D) both of the above

Accepted Answer

Both the firm's historical performance and the performance of competitors are key benchmarks for setting financial goals. Historical performance provides insight into what the firm has achieved in the past and areas for improvement, while competitor performance offers a gauge for industry standards and competitive positioning.

Question 6

Which of the following is not a general category for strategic initiatives?
A) termination or turnaround of underperforming operations
B) top management compensation
C) investments in growth
D) development of risk management and compliance initiatives

Accepted Answer

Top management compensation is not considered a general category for strategic initiatives. Strategic initiatives typically focus on actions that directly impact the organization's long-term position and performance, such as growth investments, operational turnarounds, and risk management, rather than on compensation strategies.

Question 7

The Marakon profitability matrix is appropriate for:
A) comparing programs in the strategic plan
B) comparing competitors in terms of their market positions
C) comparing business units in terms of their economic performance
D) comparing countries in terms of their economic performance

Accepted Answer

The Marakon profitability matrix is a tool used to compare business units within a company in terms of their economic performance, helping to assess and prioritize them based on profitability and investment needs.

Question 8

Which of the following should not be an element in the corporate strategic plan?
A) portfolio management activities
B) infrastructure initiatives
C) centralization initiatives
D) none of the above

Accepted Answer

All the options listed (portfolio management activities, infrastructure initiatives, centralization initiatives) can be elements of a corporate strategic plan, as they all pertain to overarching decisions and directions that a corporation might take to achieve its long-term objectives.

Question 9

The typical time period for goal setting in a strategic plan is:
A) five years
B) three years
C) eight years
D) none of the above

Accepted Answer

The answer of The typical time period for goal setting...

Question 10

Which of the following is a useful question for competitor analysis?
A) What are the key macroeconomic forces that affect profits in the industry?
B) Has the industry passed through a shakeout?
C) Where is the firm located in the competitive landscape in terms of is value and cost drivers?
D) all of the above

Accepted Answer

All the options provided are useful questions for competitor analysis as they help in understanding the broader economic context, the stage of industry evolution, and the firm's competitive positioning, which are all crucial for strategic planning and decision-making.

Question 11

Strategic planning is more a line activity than a staff activity.

Accepted Answer

Strategic planning is primarily a line activity because it involves making key decisions and setting the direction for the organization, which is the responsibility of line managers who are directly accountable for achieving the organization's goals. Staff activities, on the other hand, typically support line activities by providing expertise, analysis, and recommendations.

Question 12

Strategic execution is the same as strategy planning.

Accepted Answer

Strategic execution refers to the implementation phase where the plans and strategies are put into action, whereas strategy planning involves the process of defining the organization's direction and making decisions on allocating resources to pursue this strategy.

Question 13

Two standard methods for evaluating the economic value of a project include DCF analysis (and, in turn, NPV) and Real Options. When would it make sense to use a Real Options analysis instead of a DCF based analysis?

Accepted Answer

The answer of Two standard methods for evaluating the economic...

Question 14

The benefit of stretch goals lies in stimulating a level of innovation beyond what management has already imagined.

Accepted Answer

Stretch goals are designed to push organizations beyond their current capabilities and comfort zones, encouraging innovative thinking and solutions that exceed existing management expectations.

Question 15

A vision statement is typically medium long and describes the long term goals of the firm.

Accepted Answer

A vision statement is typically short and describes the long-term aspirations of the firm, focusing on its ultimate goal or how it wants the world to see it in the future.

Question 16

Managers shy away from setting long-term goals because they are unwilling to identify the strategic consequences of their actions in a larger time frame.

Accepted Answer

Managers are unwilling to identify the strategic consequences of their actions in a larger time frame, so they shy away from setting long-term goals.

Question 17

Goals are the basic units though which strategy is executed.

Accepted Answer

Goals are specific targets or outcomes that organizations aim to achieve, while strategy is the overarching plan or approach to reach those goals. Goals are not the basic units of strategy execution; rather, they are the desired results that strategy aims to accomplish.

Question 18

Strategic initiatives are useful for assessing how well a plan is being executed.

Accepted Answer

Strategic initiatives are actions or series of actions aimed at achieving specific goals within a strategic plan, thus they are useful for assessing the execution and progress of that plan.

Question 19

Execution is compromised when programs lack a lead manager and a specific time frame for completion.

Accepted Answer

Without a lead manager to guide and oversee the project and a specific time frame for completion, execution can become disorganized and inefficient, leading to potential delays and compromised outcomes.

Question 20

Program performance is tied to the business metrics included in a plan's goals.

Accepted Answer

Program performance is often measured against the business metrics and objectives outlined in a plan's goals, as these metrics serve as benchmarks for success and guide the program's direction and adjustments.

Quiz 5: Partnering

Which of the following are common managerial decision-making biases?

Which of the following is not an element of a business-level strategic plan?

Competitor analysis typically deals with:

Goal setting is a more effective tool for planning than SWOT analysis because:

Which of the following are key benchmarks for setting financial goals?

Which of the following is not a general category for strategic initiatives?

The Marakon profitability matrix is appropriate for:

Which of the following should not be an element in the corporate strategic plan?

The typical time period for goal setting in a strategic plan is:

Which of the following is a useful question for competitor analysis?