Strategy and Alignment CGEIT Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   In the strategic planning process, what is the typical first step?

   • ADeveloping strategic options and selecting the best one
   • BImplementing the strategic plan across the organization
   • CConducting a review of the strategic plan's performance
   • DSetting the direction by defining the mission, vision, and strategic objectives
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2. 2application · medium

   A manufacturing company's enterprise strategy emphasizes reducing operational costs by 15% through automation. The IT department proposes a large-scale ERP upgrade. What should the IT governance board do first to ensure alignment with enterprise objectives?

   • AAsk the IT department to reduce the upgrade scope to minimize costs
   • BDefer the decision until the next fiscal year to see if the cost reduction target changes
   • CConduct a business case analysis to quantify how the ERP upgrade will reduce operational costs and support the automation strategy
   • DApprove the ERP upgrade because it is a major IT investment that will modernize the infrastructure
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4. 3foundation · easy

   In the context of developing an IT strategy, which activity is primarily associated with environmental scanning?

   • AReviewing the organization's mission and vision statements
   • BIdentifying external trends, opportunities, and threats that could affect the organization
   • CEvaluating the performance of current IT projects against their business cases
   • DAnalyzing the organization's current IT capabilities and resource constraints
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5. 4expert · hard

   A multinational corporation is developing its IT strategy. The enterprise has two conflicting objectives: (1) reduce IT costs by 20% and (2) expand into emerging markets with high-growth potential. The environmental scan shows that emerging markets require significant local IT infrastructure investment. The internal assessment reveals that the current IT architecture is centralized and costly to maintain. What is the most balanced strategic option?

   • AFully decentralize IT operations to each emerging market to maximize local responsiveness
   • BDelay all expansion plans until the cost reduction is fully achieved
   • CInvest heavily in a single global IT platform to serve all markets uniformly
   • DAdopt a hybrid IT model: keep core systems centralized for cost efficiency, but deploy localized edge infrastructure in emerging markets
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   What is the primary objective of aligning IT governance strategy with enterprise objectives?

   • ATo ensure IT infrastructure is standardized across all business units
   • BTo ensure IT investments and initiatives directly support the achievement of business goals
   • CTo minimize the IT budget by reducing the number of IT projects
   • DTo centralize all IT decision-making within the IT department
   Reveal Solution Discussion Select an answer first