Practice Questions
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What is the primary purpose of scenario planning in strategic decision-making?
Scenario planning creates several possible futures and looks at how each would affect the organization. Other options are incorrect because Some think...
In the context of strategic decision-making, how should a company prioritize its resource allocation when entering a new market based on strategic analysis?
Align resources with the strategic goals you found in your analysis. Other options are incorrect because Giving every department the same amount of mo...
In the context of strategic decision-making, how can a company utilize SWOT analysis to assess stakeholder interests and influence its strategic direction?
A company can look at its strengths and weaknesses that matter to stakeholders. Other options are incorrect because The idea that SWOT only cares abou...
In a scenario where a company is facing a major ethical dilemma regarding the environmental impact of its new product line, which strategic decision-making approach should the executives prioritize to ensure long-term sustainability while addressing stakeholder concerns?
Using scenario planning lets leaders look at several possible futures and see how each choice affects people and the planet. Other options are incorre...
Which of the following are key components of effective strategic decision-making? Select all that apply.
Using facts gives clear evidence about the situation. Other options are incorrect because Some people think only gut feeling is enough, but this misse...
In strategic decision-making, it is crucial to evaluate ______________ to ensure the best course of action is selected for achieving organizational goals.
Choosing the right alternative lets you see the pros and cons of each option. Other options are incorrect because Stakeholders matter, but they are pe...
A company is deciding whether to enter a new market or focus on improving its existing product line. Which category of strategic decision-making does this situation best represent?
Choosing a new market means the company wants to sell its current products to different customers. Other options are incorrect because The idea of mak...
If a company experiences a decline in market share despite increasing its advertising budget, what could be a likely underlying cause of this effect?
When ads are shown to people who do not want or need the product, the message is ignored. Other options are incorrect because The mistake is thinking ...
Strategic decision-making is to long-term planning as tactical decision-making is to what?
Strategic moves set goals for years. Other options are incorrect because Some think money checks are the main focus of tactics, but they are tools use...
A small tech startup is facing declining sales and is considering whether to pivot their product line or invest in marketing their current offerings. Which strategic decision-making principle should they prioritize to ensure they choose the best course of action?
When a company sees sales drop, it must look at what customers want and how the market is changing. Other options are incorrect because Thinking marke...
In strategic decision-making, why is it crucial to consider long-term implications over short-term gains?
Planning for the future gives a company a clear direction that keeps it growing steadily. Other options are incorrect because Some think quick profits...
What is the correct sequence of steps in the strategic decision-making process?
Defining objectives first tells the team what to aim for. Other options are incorrect because Misplacing the first steps confuses the goal; Starting w...
When faced with multiple strategies, which approach is most effective for selecting the one that aligns with organizational goals?
Using a SWOT analysis lets a company look at what it does well (strengths) and where it could improve (weaknesses) while also spotting outside chances...
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