D263 MGMT 5040
Frameworks for Strategic Decision
Making
READINESS ASSESSMENT GUIDE
Q&S
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,1. What does the acronym SWOT stand for in strategic decision-
making?
- A) Strengths, Weaknesses, Opportunities, Threats
- B) Strategies, Weaknesses, Outcomes, Threats
- C) Strengths, Weaknesses, Objectives, Targets
- D) Skills, Weaknesses, Opportunities, Tactics
Correct Answer: A
Rationale: SWOT analysis is a framework for identifying and
understanding the internal strengths and weaknesses, and the
external opportunities and threats.
2. Which of the following frameworks focuses on the competitive
forces affecting an industry?
- A) Balanced Scorecard
- B) PEST Analysis
- C) Porter's Five Forces
- D) Value Chain Analysis
Correct Answer: C
Rationale: Porter's Five Forces analyze the competitive landscape
by examining the influences of competitors, potential entrants,
substitutes, buyers, and suppliers on market dynamics.
3. In the context of strategic decision-making, what does the 4Ps
model refer to?
- A) People, Process, Promotion, Price
- B) Product, Price, Place, Promotion
- C) Product, Process, People, Performance
- D) Purpose, Product, Profit, Promotion
Correct Answer: B
Rationale: The 4Ps (Product, Price, Place, Promotion)
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, framework helps organizations to define their marketing strategy by
emphasizing key aspects of marketing mix.
4. Which of the following is NOT part of the VRIO framework
for resource-based evaluation?
- A) Value
- B) Rarity
- C) Imitability
- D) Orientation
Correct Answer: D
Rationale: The VRIO framework evaluates resources based on
Value, Rarity, Imitability, and Organization.
5. What is a characteristic of the Ansoff Matrix?
- A) It evaluates industry attractiveness.
- B) It provides strategic growth options.
- C) It identifies internal strengths and weaknesses.
- D) It focuses on cost leadership strategies.
Correct Answer: B
Rationale: The Ansoff Matrix identifies growth strategies by
looking at existing and new products in existing and new markets.
Fill-in-the-Blank Questions
6. The __________ analysis provides a structured approach to
identifying the external macro-environmental factors affecting an
organization.
Correct Answer: PEST
Rationale: PEST analysis stands for Political, Economic, Social,
and Technological analysis, which helps organizations identify
external factors influencing strategic decisions.
7. In strategic decision-making, a __________ is a detailed plan to
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