Planning and managing organisations/PMAN103/Planning and strategy/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Planning and strategy.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Planning and Managing Organisations (PMAN103) micro-course. Please consult the Certify participation page for more information.

True - false questions

Indicate whether the following statements are true or false:

• Once the internal analyses of an organization using PESTLE are complete, the results can be inputted into a SWOT analysis.
  • True
    • Correct.
  • False
    • No. This approach facilitates the creation of “mini strategies” that address the problem(s) in question.
• Although the “classical” approach to formulating strategies, ie. Predict/Plan/Shape, is still relevant in some cases, many organizations may now require a more “experimental” approach to navigate a turbulent environment.
  • True
    • Correct.
  • False
    • No. Strategy still needs to match the situation, but in a turbulent environment it is difficult if not impossible to predict, plan for and/or shape the working conditions.
• Planning process is synonymous with strategic management process as they both focus on what the organization is doing to achieve its mission and vision.
  • True
    • No. While the planning process formulates a direction for an organization, the strategic management process is concerned with what the organization will do and won’t do so that this direction can be achieved.
  • False
    • Correct.
• A successful strategy formulation exercise would answer questions about “what” the strategy should be and “how” to implement that strategy.
  • True
    • No. The strategy formulation exercise only identifies “what” the strategy should be while the “how” question is answered in a separate strategy implementation exercise.
  • False
    • Correct

Multiple choice questions

• What is the usual time frame for a strategic management process which involves analyzing competitive opportunities and threats as well as the strengths and weaknesses of an organization? (Select one answer)
  • Less than one year
    • Incorrect. This is a long-term process.
  • One to two years
    • Incorrect. This is a long-term process.
  • Two to three years
    • Incorrect. This is a long-term process.
  • Three or more years
    • Yes.
• Which ONE of the POLC functions of management involves developing a corporate structure and allocating human resources to ensure the accomplishment of objectives? (Select one answer)
  • Planning
    • Incorrect. This is not the POLC function.
  • Organizing
    • Yes.
  • Leading
    • Incorrect. This is not the POLC function.
  • Controlling
    • Incorrect. This is not the POLC function.
• Which THREE of the following are major diversification strategies outlined in the PMAN103 readings? (Select all that apply – there are three correct answers)
  • Concentric diversification
    • Yes. The new business produces products that are technically similar to the company’s current product but that appeal to a new consumer group.
  • Horizontal Diversification
    • Yes. The new business produces products that are totally unrelated to the company’s current product but that appeal to the same consumer group.
  • Vertical diversification
    • Incorrect. This is not a diversification strategy.
  • Conglomerate diversification
    • Yes. The new business produces products that are totally unrelated to the company’s current product and that appeal to an entirely new consumer group.
• Which THREE of the following are major diversification strategies outlined in the PMAN103 readings? (Select all that apply – there are three correct answers)
  • Value chain
    • Yes. The value chain requires taking an organization apart and identifying the important constituent parts.
  • VRIO
    • Yes. The VRIO framework suggests that a capability, or a resource, such as a patent or great location, is likely to yield a competitive advantage to an organization when it can be shown that it is valuable, rare, difficult to imitate, and supported by an organization.
  • PESTEL
    • Yes. The PESTEL framework involves collecting information about, and analyzing, each environmental dimension to identify the broad range of threats and opportunities facing an organization.
  • Financial chain
    • Incorrect. The financial chain is not a tool discussed in the PMAN103 materials.