Question 1
An SMP analyzing the soft drink industry notices that consumers can easily switch to water, juice, or tea. This BEST illustrates which force?
Show answer & explanation
Correct answer: C - Threat of substitute products available
10 free, exam-style Strategy Management Professional (SMP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free SMP practice test to study every exam domain.
An SMP analyzing the soft drink industry notices that consumers can easily switch to water, juice, or tea. This BEST illustrates which force?
Correct answer: C - Threat of substitute products available
An SMP discovers managers fully understand the new strategy but resist participating in its rollout. According to ADKAR, which element is MOST likely deficient?
Correct answer: B - Desire to support the change
An SMP analyzes a software firm's proprietary algorithm: it generates value, no rival has it, it took 10 years to develop, and the firm's structure exploits it. Per VRIO, this indicates:
Correct answer: D - A position of sustained competitive advantage
An SMP analyzing the airline industry notices fuel suppliers are concentrated and switching costs are high. Which Porter force is HIGH?
Correct answer: A - Supplier bargaining power increases
An SMP observes that an organization's espoused values say 'innovation is core' but underlying assumptions punish risk-taking. Per Schein, this represents:
Correct answer: B - A contradiction between espoused values and underlying assumptions
An SMP analyzing a project where multiple paths run through the schedule should use which method to find the longest path determining minimum duration?
Correct answer: C - Critical Path Method (CPM) analysis
'Catchball' in Hoshin Kanri refers to:
Correct answer: D - Iterative top-down and bottom-up communication to refine objectives
An SMP advising on a high-stakes decision requiring strong team buy-in should typically recommend which Vroom-Yetton style?
Correct answer: A - GII for consensus decision-making and stronger buy-in
An SMP detecting that a strategic initiative repeatedly misses targets despite execution discipline should consider applying:
Correct answer: B - Double-loop learning to question underlying strategic assumptions
An SMP advising senior management on the COMPLETE strategic management lifecycle (engagement, formulation, transformation, execution) should ensure:
Correct answer: C - All four domains operate as integrated capability rather than separate silos
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