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Free SMP Practice Questions

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.

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?

  1. Threat of new entrants to the industry
  2. Bargaining power of suppliers in the chain
  3. Threat of substitute products available
  4. Competitive rivalry among existing firms
Show answer & explanation

Correct answer: C - Threat of substitute products available

Question 2

An SMP discovers managers fully understand the new strategy but resist participating in its rollout. According to ADKAR, which element is MOST likely deficient?

  1. Awareness of the change overall
  2. Desire to support the change
  3. Knowledge of how to change
  4. Reinforcement of the change
Show answer & explanation

Correct answer: B - Desire to support the change

Question 3

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:

  1. Competitive parity with rival firms overall
  2. Temporary competitive advantage briefly
  3. Competitive disadvantage versus peers
  4. A position of sustained competitive advantage
Show answer & explanation

Correct answer: D - A position of sustained competitive advantage

Question 4

An SMP analyzing the airline industry notices fuel suppliers are concentrated and switching costs are high. Which Porter force is HIGH?

  1. Supplier bargaining power increases
  2. Bargaining power of buyers here
  3. Threat of substitute products
  4. Threat of new market entrants
Show answer & explanation

Correct answer: A - Supplier bargaining power increases

Question 5

An SMP observes that an organization's espoused values say 'innovation is core' but underlying assumptions punish risk-taking. Per Schein, this represents:

  1. Perfect alignment of all three cultural levels described
  2. A contradiction between espoused values and underlying assumptions
  3. An external regulatory issue unrelated to internal culture
  4. A simple artifact-level mismatch with easy resolution across functions
Show answer & explanation

Correct answer: B - A contradiction between espoused values and underlying assumptions

Question 6

An SMP analyzing a project where multiple paths run through the schedule should use which method to find the longest path determining minimum duration?

  1. Six Sigma DMAIC improvement cycle
  2. RACI matrix for accountability
  3. Critical Path Method (CPM) analysis
  4. VRIO resource-based view analysis
Show answer & explanation

Correct answer: C - Critical Path Method (CPM) analysis

Question 7

'Catchball' in Hoshin Kanri refers to:

  1. A one-way top-down directive without any bottom-up dialogue generally
  2. An obsolete practice with no role in modern Hoshin Kanri broadly
  3. Pure bottom-up planning without any top-down guidance overall
  4. Iterative top-down and bottom-up communication to refine objectives
Show answer & explanation

Correct answer: D - Iterative top-down and bottom-up communication to refine objectives

Question 8

An SMP advising on a high-stakes decision requiring strong team buy-in should typically recommend which Vroom-Yetton style?

  1. GII for consensus decision-making and stronger buy-in
  2. AI for fast leader-only decision without team input
  3. AII for fast leader decision with information gathered alone
  4. CI for individual consultation without group dialogue broadly
Show answer & explanation

Correct answer: A - GII for consensus decision-making and stronger buy-in

Question 9

An SMP detecting that a strategic initiative repeatedly misses targets despite execution discipline should consider applying:

  1. Single-loop learning to adjust execution within the same assumptions
  2. Double-loop learning to question underlying strategic assumptions
  3. PESTEL macro analysis without any learning framework broadly
  4. Critical Path Method without any strategic learning framework
Show answer & explanation

Correct answer: B - Double-loop learning to question underlying strategic assumptions

Question 10

An SMP advising senior management on the COMPLETE strategic management lifecycle (engagement, formulation, transformation, execution) should ensure:

  1. All four domains operate as separate silos without any integration broadly
  2. Only one domain matters and the others are obsolete in modern practice overall
  3. All four domains operate as integrated capability rather than separate silos
  4. The four domains are restricted to external auditors without internal use
Show answer & explanation

Correct answer: C - All four domains operate as integrated capability rather than separate silos

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