Question 31. What describes the specific end results an organization is seeking to achieve and the measures to objectively assess if these end results have been achieved?
A. Business Goal
B. Business Case
C. Business Objective
D. Business Need
The correct answer is:
C. Business Objective
Explanation:
A Business Objective describes specific, measurable outcomes that an organization aims to achieve. Objectives are concrete and time-bound, often forming part of a broader strategy, and help to drive the organization’s operations towards clear end results. They also include specific measures or Key Performance Indicators (KPIs) that allow for an objective assessment of success.
Let’s examine why the other options are not the best answers:
• A. Business Goal: Goals are broader than objectives. While they outline what the organization hopes to accomplish, they are generally less specific and may not include detailed metrics for assessment.
• B. Business Case: A Business Case is a document that justifies the undertaking of a project or initiative, focusing on its value, benefits, costs, and risks. It does not define specific end results or how they will be measured.
• D. Business Need: A Business Need identifies a gap or requirement within the organization, such as a problem to solve or an area for improvement. It is not a specific outcome or measurable end result.
Thus, Business Objective is the best answer because it aligns with the requirement for specific end results and measurable assessments.
Question 32. The following are the four elements to be addressed in every business case?
A. Costs,Benefits,results,risks
B. Benefits,Costs,Goals,Objectives
C. Costs,Benefits,risks,issues
D. Benefits,Costs,plan,scope
The correct answer is A. Costs, Benefits, Results, Risks.
Here’s an explanation of why each element is essential in a business case:
1. Costs: This includes all expenses associated with the project, such as direct and indirect costs. Knowing costs helps stakeholders understand the financial commitment required and assists in determining if the benefits justify these costs.
2. Benefits: The business case should highlight expected gains or value, whether in revenue, operational efficiencies, or strategic advantages. Benefits provide a reason for pursuing the project and help justify the investment.
3. Results: This refers to the specific outcomes the project aims to achieve. Results help clarify what the project will deliver upon completion and can include qualitative or quantitative objectives.
4. Risks: Identifying potential risks or uncertainties is critical. By understanding risks, decision-makers can assess the likelihood of achieving the project goals and plan ways to mitigate possible challenges.
These four elements together ensure that a business case addresses both the advantages and challenges of the project comprehensively.
Question 33. Which of the following is a technique used in determining solution approach?
A. Benchmarking
B. SWOT Analysis
C. Estimation
D. All of the above
The correct answer is D. All of the above. Each of the options listed is a technique that can be used to determine a solution approach in problem-solving or strategic planning. Here’s a breakdown of each technique:
1. Benchmarking: This involves comparing processes, performance metrics, or solutions with best practices or industry standards. Benchmarking helps in understanding how others solve similar problems and can inspire or inform a suitable solution approach.
2. SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic tool that helps identify internal and external factors impacting a solution. By understanding these factors, it becomes easier to develop an effective approach, leveraging strengths, addressing weaknesses, exploiting opportunities, and mitigating threats.
3. Estimation: Estimation is the process of making an educated guess about the potential resources, time, or costs associated with different solution approaches. Accurate estimation allows for better planning and ensures that resources are allocated efficiently when determining a solution approach.
All three of these techniques can play a role in determining a suitable solution approach, making the correct answer D. All of the above.
Question 34. The following except ONE describes the business analysis activities within the strategy analysis knowledge area:
A. Analysis of the business situation to fully understand opportunities or problems
B. Analyze Current State for the needed change to meet business needs or achieve strategic goals
C. Business case and solution scope definition for a proposed solution
D. Meeting stakeholders to gather requirements for the business problem / opportunity.
The correct answer is:
D. Meeting stakeholders to gather requirements for the business problem/opportunity.
Explanation
In business analysis, the Strategy Analysis knowledge area focuses on understanding the overall business context, goals, and needs to define solutions and strategies at a high level. Let’s look at why each option either fits or does not fit within this knowledge area:
1. Option A – Analysis of the business situation to fully understand opportunities or problems.
• This is part of strategy analysis. Business analysts assess the broader context, analyzing internal and external factors to identify potential business challenges or growth opportunities.
2. Option B – Analyze Current State for the needed change to meet business needs or achieve strategic goals.
• This also falls under strategy analysis. It involves evaluating the current state to understand existing problems, capabilities, and areas that require change to meet business objectives.
3. Option C – Business case and solution scope definition for a proposed solution.
• This is within the scope of strategy analysis. Business analysts often create a business case to justify the investment and scope out potential solutions, defining what the solution might encompass in broad terms.
4. Option D – Meeting stakeholders to gather requirements for the business problem/opportunity.
• Incorrect choice for strategy analysis. Gathering detailed requirements from stakeholders is generally part of the Requirements Analysis and Design Definition knowledge area. This phase comes after understanding the business context and developing a high-level strategy.
So, Option D does not belong to the Strategy Analysis knowledge area, as it is specific to gathering detailed requirements rather than assessing high-level strategy.
Question 35. The process of determining the justification of the investment required to deliver a propose solution is detailed in the business case and may include the following:
A. The company to buy the solution from
B. The year the solution was produced
C. Similar companies that are using the same solution
D. Quantitative and qualitative benefits
The correct answer is D. Quantitative and qualitative benefits.
Explanation:
In the context of a business case, the goal is to justify an investment by detailing how a proposed solution will benefit the organization. This involves a clear presentation of quantitative benefits (such as cost savings, revenue growth, or productivity gains that can be measured in numbers) and qualitative benefits (such as improved customer satisfaction or employee morale, which may be harder to measure numerically).
Let’s break down why each option is relevant or not in this context:
• Option A: The company to buy the solution from – While it’s helpful to know which vendor might provide the solution, the business case’s primary focus is to justify the investment. Deciding on a vendor is often a later stage, after deciding that the investment is worthwhile.
• Option B: The year the solution was produced – This might be relevant for understanding the technology’s age or support lifespan but doesn’t directly justify the value or benefits of the investment.
• Option C: Similar companies that are using the same solution – While examples of similar companies can offer validation, they don’t directly address the unique benefits expected for the organization in question.
• Option D: Quantitative and qualitative benefits – This is correct because the business case relies heavily on providing both measurable (quantitative) and less tangible (qualitative) benefits to justify the investment and ensure stakeholders understand its value.
In summary, option D is the best answer as it aligns most closely with the purpose of a business case in assessing an investment’s justification.
Question 36. The approach in which business need is defined determines all except ONE of the following:
A. Stakeholders to be consulted
B. How many interview sessions to be held
C. Solution approaches to be evaluated
D. Alternative solutions for consideration
The correct answer is B. How many interview sessions to be held.
Explanation
The approach to defining business needs typically involves clarifying objectives, identifying challenges, and assessing possible solutions. This process impacts:
1. Stakeholders to be consulted (A): The business need definition often reveals which stakeholders should be involved. It is crucial to consult relevant parties who have insights into the problem or who will be affected by the solution.
2. Solution approaches to be evaluated (C): Based on the defined needs, specific solution approaches are considered. This will include high-level strategies and methods that align with the business goals and requirements.
3. Alternative solutions for consideration (D): In order to achieve the best fit for the identified needs, alternative solutions are generated and considered. This ensures that multiple viable paths are evaluated before committing to a single solution.
Why B is the Exception:
The number of interview sessions to be held is a logistical decision, usually determined by resource availability, scheduling, or specific project planning rather than the business needs themselves.
Question 37. Which of the following is an example of a business goal?
A. To increase profit by 10% in 12 months
B. To increase revenue customer
C. To acquire security software within a month
D. To reduce turnaround time by 20%
The best example of a business goal among the options is:
A. To increase profit by 10% in 12 months
Here’s why:
1. Business Goals Are Strategic and Measurable: Business goals typically involve strategic objectives that a company wants to achieve. They are often specific, measurable, achievable, relevant, and time-bound (SMART). “To increase profit by 10% in 12 months” is measurable (10%), time-bound (12 months), and strategic because it addresses the company’s financial growth.
2. Options B, C, and D Are More Tactical or Operational:
• B. To increase revenue customer is unclear and lacks specificity, making it hard to measure and track.
• C. To acquire security software within a month is an operational task, not a broad business goal, as it focuses on obtaining a specific tool rather than achieving a strategic outcome.
• D. To reduce turnaround time by 20% is often seen as an operational improvement goal rather than a broad business objective. While it could support a business goal, it’s more of a performance metric than a strategic target.
In summary, Option A fits best as a business goal since it aligns with the strategic, measurable, and time-bound nature of typical business objectives.
Question 38. Which of the following statements best describes the role of a Project manager in defining solution scope?
A. Primarily responsible for determining the time and effort required to deliver a capacity
B. Determines all assumptions and constraints about the solutions
C. Approves the project budgets
D. Provide detailed process knowledge on key business areas
The best answer is A. Primarily responsible for determining the time and effort required to deliver a capacity.
Explanation
The role of a Project Manager primarily involves overseeing project delivery, which includes determining timelines, managing resources, and coordinating activities to ensure successful project completion. While the Project Manager collaborates with stakeholders to understand the scope and objectives of the project, their main responsibility is to create a feasible plan that aligns with the project’s time and resource constraints.
Why the Other Options Are Not Correct
• B. Determines all assumptions and constraints about the solutions: This responsibility typically falls to business analysts and solution architects, who have a deeper understanding of the technical and business environment, and who work closely with the Project Manager to inform the project plan.
• C. Approves the project budgets: While Project Managers often provide budget estimates and monitor spending, final budget approvals are usually the responsibility of executives or project sponsors.
• D. Provide detailed process knowledge on key business areas: Subject matter experts (SMEs) or business analysts, rather than Project Managers, typically supply this kind of detailed business knowledge. The Project Manager uses this input to inform planning but is not necessarily an expert on business processes themselves.
Therefore, option A best captures the Project Manager’s role in defining solution scope from a planning and resource allocation perspective.
Question 39. What has been defined when all strategy analysis tasks are complete?
A. Business Goals and objectives
B. Business requirements and Solution Approach
C. Business case and required capabilities
D. Solution scope and Solution approach.
The correct answer is:
D. Solution scope and Solution approach
Explanation:
When all strategy analysis tasks are complete, business analysts have established a clear understanding of the following:
1. Solution Scope – This defines what the solution will address in terms of problems, opportunities, and objectives. It outlines the boundaries of what is included in the solution and what is not, which helps set expectations and prevent scope creep during development and implementation.
2. Solution Approach – This is the strategy or method the organization will use to solve the identified problems and achieve the objectives. It includes whether the solution will be developed in-house, purchased, or outsourced, and details the key activities and resources needed to implement it.
The other options, though relevant to the strategy analysis process, are not necessarily fully defined by the end of it. Here’s why each is less accurate:
• A. Business Goals and Objectives: These are identified early on and serve as foundational inputs to the strategy analysis. By the end of strategy analysis, they guide the solution scope but are not defined by it.
• B. Business Requirements and Solution Approach: Business requirements are often further detailed in the requirements analysis phase rather than strategy analysis, though the solution approach does emerge here.
• C. Business Case and Required Capabilities: While a business case may be initiated as part of strategy analysis, it often evolves and is refined as more specific requirements and solution options are considered.
Hence, Solution Scope and Solution Approach are the key outputs defined by completing strategy analysis.
Question 40. What is the primary deliverable from preparing the decision package step?
A. Executive briefing
B. Portfolio analysis report
C. Business case
D. Strategy analysis report
The correct answer is:
C. Business case
Explanation:
The primary deliverable from preparing the decision package is typically a business case. A business case provides a structured document that outlines the justification for a proposed investment or project. This document includes details about the objectives, benefits, costs, risks, and potential returns. Preparing a decision package involves gathering and analyzing this information so that decision-makers can evaluate whether the project aligns with strategic goals and is worth pursuing.
Here’s why the other options are not the primary deliverable:
• A. Executive briefing: An executive briefing is often a summary or presentation for leadership but does not serve as the main deliverable of the decision package.
• B. Portfolio analysis report: This report assesses a portfolio of projects or investments, focusing on overall balance and alignment with organizational strategy. While it may consider decision packages, it isn’t the main output of a single decision package.
• D. Strategy analysis report: This report looks at strategic alignment or options at a broader level, rather than the specific evaluation of a single project or initiative that the business case covers.
So, the business case is the main document prepared to support informed decision-making for specific investments.