APPIAN ANALYST CERTIFICATION
PREP - STRATEGIC ANALYSIS EXAM
QUESTIONS WITH VERIFIED
ANSWERS
What do Michael Porter's five forces analyse? - ANSWER-Michael Porter's five
forces analyse the competitive landscape in which a business operates. They assess
the level of competition and the threat of new entrants, the bargaining power of
customers and suppliers, the threat of substitute products and services, and the
degree of rivalry in an industry.
What is the most important part of SWOT Analysis? - ANSWER-The most important
part of SWOT Analysis is to identify an organization's strengths and weaknesses, as
well as the external opportunities and threats facing the company. This can be used
to identify areas of competitive advantage and disadvantage, and to identify potential
areas of growth or areas of risk.
How can you use the Balanced Scorecard to measure performance? - ANSWER-
The Balanced Scorecard helps organizations measure performance in a holistic and
balanced way. It is used to measure performance across a variety of financial,
customer, internal, and innovation metrics. This allows organizations to understand
the long-term impacts of each decision, and to create and measure specific goals for
each aspect of the organization.
What is the purpose of market segmentation? - ANSWER-Market segmentation is
the process of dividing a market into smaller groups of customers who have common
characteristics, interests, and needs. By segmenting a market, companies are better
able to target different segments with tailored products and services as well as more
efficient marketing campaigns.
What do the financial ratios measure? - ANSWER-Financial ratios measure
information about a company's performance, such as profitability, liquidity, and
solvency. They can be used to compare a company's performance to industry
norms, as well as to determine how a company is performing relative to its peers.
What types of industry research can you do? - ANSWER-Industry research can
include performing market and customer surveys, assessing customer needs,
industry trends, competitor data, legislation, and economic factors. It can help
organizations understand their industry, identify competitors, and make more
informed strategic decisions.
What is the most important concept in value chain analysis? - ANSWER-The most
important concept in value chain analysis is understanding the link between each
part of an organization's activities and the overall financial performance. Companies
can use value chain analysis to identify potential areas of cost savings, or to
, understand how their activities drive customer value or create competitive
advantage.
What is a stakeholder analysis? - ANSWER-A stakeholder analysis is a process of
identifying and assessing the needs of stakeholders, in order to determine how to
best manage their expectations. It is often used to assess the potential impact of a
project or policy on different stakeholder groups.
What is a scenario analysis? - ANSWER-Scenario analysis is an analytical tool used
to investigate the potential outcomes of different decisions. It involves creating
different alternative scenarios and then assessing the potential financial and
operational impacts of each.
What are the benefits of a PESTEL Analysis? - ANSWER-A PESTEL Analysis is an
analytical tool used to identify the key external factors that could affect organization's
strategic decisions. It is used to assess the impact of political, economic, social,
technological, environmental, and legal factors on a company's performance.
What is Porter's 'Five Forces' model? - ANSWER-Porter's Five Forces model is a
framework for analyzing the level of competition in an industry. It considers the
intensity of rival firms, the bargaining power of customers and suppliers, the threat of
substitution, the potential for new entrants, and the intensity of industry rivalry.
What is the purpose of a financial statement analysis? - ANSWER-Financial
statement analysis is used to determine a company's financial health. It involves
analyzing financial statements such as income statements and balance sheets in
order to assess profitability, solvency, liquidity, growth potential, and financial
strength.
What is the definition of strategic analysis? - ANSWER-Strategic analysis is the
assessment of a situation - usually a business, political, or military situation - in order
to determine the optimal course of action. It involves analyzing the internal and
external environment of an organization to identify its strengths and weaknesses and
to assess any potential opportunities and threats.
What are the four steps of the strategic analysis process? - ANSWER-The four steps
of the strategic analysis process are: Step 1: Situation Analysis. This is the
assessment of the internal and external environment of an organization. Step 2:
Choice of Strategy. Once the trustworthiness of the tasks have been identified, the
best strategy must be selected. Step 3: Implementation. Once the chosen strategy
has been determined, it must be properly implemented. Step 4: Monitoring and
Evaluation. This is the ongoing evaluation of the efficacy of the strategy.
How are PESTEL and SWOT analysis used in strategic analysis? - ANSWER-
PESTEL and SWOT analysis are used in strategic analysis to evaluate the internal
and external environment of an organization. PESTEL stands for "Political,
Economic, Social, Technological, Environmental, and Legal" analysis and is used to
assess the external environment. SWOT analysis stands for "Strength, Weaknesses,
Opportunities, and Threats" and is used to assess the internal environment.
PREP - STRATEGIC ANALYSIS EXAM
QUESTIONS WITH VERIFIED
ANSWERS
What do Michael Porter's five forces analyse? - ANSWER-Michael Porter's five
forces analyse the competitive landscape in which a business operates. They assess
the level of competition and the threat of new entrants, the bargaining power of
customers and suppliers, the threat of substitute products and services, and the
degree of rivalry in an industry.
What is the most important part of SWOT Analysis? - ANSWER-The most important
part of SWOT Analysis is to identify an organization's strengths and weaknesses, as
well as the external opportunities and threats facing the company. This can be used
to identify areas of competitive advantage and disadvantage, and to identify potential
areas of growth or areas of risk.
How can you use the Balanced Scorecard to measure performance? - ANSWER-
The Balanced Scorecard helps organizations measure performance in a holistic and
balanced way. It is used to measure performance across a variety of financial,
customer, internal, and innovation metrics. This allows organizations to understand
the long-term impacts of each decision, and to create and measure specific goals for
each aspect of the organization.
What is the purpose of market segmentation? - ANSWER-Market segmentation is
the process of dividing a market into smaller groups of customers who have common
characteristics, interests, and needs. By segmenting a market, companies are better
able to target different segments with tailored products and services as well as more
efficient marketing campaigns.
What do the financial ratios measure? - ANSWER-Financial ratios measure
information about a company's performance, such as profitability, liquidity, and
solvency. They can be used to compare a company's performance to industry
norms, as well as to determine how a company is performing relative to its peers.
What types of industry research can you do? - ANSWER-Industry research can
include performing market and customer surveys, assessing customer needs,
industry trends, competitor data, legislation, and economic factors. It can help
organizations understand their industry, identify competitors, and make more
informed strategic decisions.
What is the most important concept in value chain analysis? - ANSWER-The most
important concept in value chain analysis is understanding the link between each
part of an organization's activities and the overall financial performance. Companies
can use value chain analysis to identify potential areas of cost savings, or to
, understand how their activities drive customer value or create competitive
advantage.
What is a stakeholder analysis? - ANSWER-A stakeholder analysis is a process of
identifying and assessing the needs of stakeholders, in order to determine how to
best manage their expectations. It is often used to assess the potential impact of a
project or policy on different stakeholder groups.
What is a scenario analysis? - ANSWER-Scenario analysis is an analytical tool used
to investigate the potential outcomes of different decisions. It involves creating
different alternative scenarios and then assessing the potential financial and
operational impacts of each.
What are the benefits of a PESTEL Analysis? - ANSWER-A PESTEL Analysis is an
analytical tool used to identify the key external factors that could affect organization's
strategic decisions. It is used to assess the impact of political, economic, social,
technological, environmental, and legal factors on a company's performance.
What is Porter's 'Five Forces' model? - ANSWER-Porter's Five Forces model is a
framework for analyzing the level of competition in an industry. It considers the
intensity of rival firms, the bargaining power of customers and suppliers, the threat of
substitution, the potential for new entrants, and the intensity of industry rivalry.
What is the purpose of a financial statement analysis? - ANSWER-Financial
statement analysis is used to determine a company's financial health. It involves
analyzing financial statements such as income statements and balance sheets in
order to assess profitability, solvency, liquidity, growth potential, and financial
strength.
What is the definition of strategic analysis? - ANSWER-Strategic analysis is the
assessment of a situation - usually a business, political, or military situation - in order
to determine the optimal course of action. It involves analyzing the internal and
external environment of an organization to identify its strengths and weaknesses and
to assess any potential opportunities and threats.
What are the four steps of the strategic analysis process? - ANSWER-The four steps
of the strategic analysis process are: Step 1: Situation Analysis. This is the
assessment of the internal and external environment of an organization. Step 2:
Choice of Strategy. Once the trustworthiness of the tasks have been identified, the
best strategy must be selected. Step 3: Implementation. Once the chosen strategy
has been determined, it must be properly implemented. Step 4: Monitoring and
Evaluation. This is the ongoing evaluation of the efficacy of the strategy.
How are PESTEL and SWOT analysis used in strategic analysis? - ANSWER-
PESTEL and SWOT analysis are used in strategic analysis to evaluate the internal
and external environment of an organization. PESTEL stands for "Political,
Economic, Social, Technological, Environmental, and Legal" analysis and is used to
assess the external environment. SWOT analysis stands for "Strength, Weaknesses,
Opportunities, and Threats" and is used to assess the internal environment.
