Strategic Planning and Operations Management
What to know
Strategic planning and operations management tests how organizations set direction and run efficiently. Candidates must know the strategic planning cycle: environmental assessment (SWOT), mission/vision/values, goal setting, strategy formulation, implementation, and evaluation. Understand tools such as SWOT, Porter's five forces, balanced scorecard, and key performance indicators.
Operations concepts include process mapping, capacity planning, queuing theory, supply chain management, and Lean principles (waste reduction, value stream mapping, 5S, kaizen). Know the difference between strategic, tactical, and operational planning horizons. Understand project management basics - scope, schedule, budget, stakeholders, and risk.
Traps
Questions often confuse strategy (long-term direction) with tactics (short-term actions). Another trap is treating SWOT as only internal - strengths and weaknesses are internal; opportunities and threats are external. Watch for balanced scorecard questions that omit one of the four perspectives: financial, customer, internal process, and learning and growth.
Worked example / rule of thumb
Rule of thumb: SWOT sorts internal vs. external; the balanced scorecard balances four perspectives. If a hospital faces declining margins, SWOT identifies internal cost weaknesses and external payer threats, and the balanced scorecard tracks financial, patient, process, and workforce measures together.