Strategic Planning & Implementation Flashcards

The McKinsey 7-S Framework helps organizations analyze internal alignment by examining seven elements. Which of the following is NOT one of them?

Answer: Supply Chain

The McKinsey 7-S elements are Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills — Supply Chain is not included.

In strategic planning, a 'scenario analysis' is used to:

Answer: Explore multiple plausible futures to test strategic robustness

Scenario analysis develops several plausible future narratives so that strategies can be tested for effectiveness under different conditions.

A 'first-mover advantage' in strategic management refers to:

Answer: The benefit gained by the company that enters a market before competitors

First-mover advantage occurs when a firm enters a new market early and establishes brand recognition, customer loyalty, or resource control before rivals.

Which stage in the strategic management process involves translating strategic goals into specific action plans, budgets, and timelines?

Answer: Strategy implementation

Strategy implementation converts chosen strategies into operational activities through resource allocation, program development, and performance management systems.

A company that continuously benchmarks itself against the best-performing firms in its industry is using benchmarking primarily as a tool for:

Answer: Identifying performance gaps and driving continuous improvement

Competitive benchmarking reveals performance gaps that can guide process improvements and strategic adjustments to close the distance to best-in-class standards.

In portfolio strategy, 'divesting' a business unit is most appropriate when:

Answer: The unit no longer fits the corporate strategy and underperforms

Divestiture is used to exit businesses that no longer align with strategic priorities, freeing resources for higher-value investments.

Strategic control differs from operational control primarily because it:

Answer: Monitors whether the strategic direction itself remains valid, not just execution progress

Strategic control questions whether the fundamental assumptions underlying a strategy are still sound, while operational control checks if execution is on track.