PGMP · Question #350
The advertising agency has been awarded a $54M US, 8-year contract to manage the advertising campaigns of a fast food chicken restaurant. The company realizes that this work is going to require a spec
The correct answer is A. Exploit. Exploit is a positive risk response strategy used for opportunities. It involves taking deliberate action to ensure the opportunity is realized. By acquiring a smaller company that possesses the exact specialized skill set needed (50 qualified employees vs. only 7 in-house), the
Question
The advertising agency has been awarded a $54M US, 8-year contract to manage the advertising campaigns of a fast food chicken restaurant. The company realizes that this work is going to require a specific skill set for 40 people. Their current workforce only has 7 people with this skill set. This skill set is somewhat rare and specialized in the area they are located. They have chosen to buy a company much smaller than they are, but this company's core focus is this type of skill set. The company employs 50 people with this skill set. This is an example of what type of risk response strategy?
Options
- AExploit
- BShare
- CMitigate
- DAccept
How the community answered
(51 responses)- A80% (41)
- B6% (3)
- C2% (1)
- D12% (6)
Explanation
Exploit is a positive risk response strategy used for opportunities. It involves taking deliberate action to ensure the opportunity is realized. By acquiring a smaller company that possesses the exact specialized skill set needed (50 qualified employees vs. only 7 in-house), the advertising agency is actively exploiting the opportunity presented by the large contract. Share involves partnering with another entity to share the opportunity. Mitigate and Accept are negative risk responses (for threats). Exploit is the strongest positive risk strategy - it eliminates uncertainty around whether the opportunity will be captured by directly securing the resources needed.
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