IIBA-CPOA practice questions: Strategy Horizon (Product)

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These 5 questions come from the Strategy Horizon (Product) section of our IIBA-CPOA bank (75 questions on this area). Every question is original, with the correct answer explained and linked to the source it is drawn from.

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1/5 · Strategy Horizon (Product)

At the strategy horizon, a product owner wants to translate the product vision into measurable targets that teams can steer toward and that leadership can use to judge progress. Which technique most directly supports defining and tracking these strategic targets?

AMaintaining a definition of ready for incoming user stories

BCreating a sprint burndown chart for the development team

CEstablishing product goals paired with key performance indicators (KPIs) and target measures

DWriting detailed acceptance criteria for each backlog item

Show answer & explanation

C is correct. To make a product vision actionable and accountable, the product owner sets product goals and pairs them with KPIs and target measures. These strategic metrics let teams steer and let leadership assess progress. Acceptance criteria, burndown charts, and a definition of ready operate at the delivery horizon and measure execution, not strategic value.
↗ IIBA Product Ownership Analysis guidance — Strategy Horizon (Product)

2/5 · Strategy Horizon (Product) · easy

A product owner wants a structured way to weigh the product's internal strengths and weaknesses against external opportunities and threats to inform strategic positioning. Which technique provides this four-quadrant view at the strategy horizon?

ADefinition of ready

BSWOT analysis

CCumulative flow diagram

DVelocity tracking

Show answer & explanation

B is correct. SWOT analysis pairs internal factors (strengths, weaknesses) with external factors (opportunities, threats) to support strategic positioning decisions, exactly the four-quadrant structure described. The distractors are delivery-horizon readiness and flow tools with no strategic-positioning function.
↗ IIBA Product Ownership Analysis guidance — Strategy Horizon (Product)

3/5 · Strategy Horizon (Product)

To justify investment in a product direction, a product owner estimates the total demand that exists if every possible buyer purchased, then narrows to the portion the product's model can actually serve, and finally to the share the team can realistically capture in the near term. Which term names that final, realistically capturable figure?

ATotal Addressable Market (TAM)

BServiceable Obtainable Market (SOM)

CServiceable Addressable Market (SAM)

DCustomer Acquisition Cost (CAC)

Show answer & explanation

B is correct. In TAM/SAM/SOM market sizing: TAM is total addressable market (all possible demand), SAM is serviceable addressable market (the portion the model can serve), and SOM is serviceable obtainable market (the share realistically captured near-term). The question's final figure is the SOM. CAC is a cost metric, not a market-size figure.
↗ IIBA Product Ownership Analysis guidance — Strategy Horizon (Product)

4/5 · Strategy Horizon (Product) · hard

A product owner wants a strategic view that positions each component of the product's value chain by how visible it is to the user and how evolved it is (from novel/custom-built toward commodity/utility), so the team can decide what to build versus buy and where genuine differentiation lies. Which technique is designed to produce exactly this view?

ARACI charting, clarifying responsibility and accountability for each task

BWardley mapping, plotting value-chain components against an evolution axis

CBurndown charting, tracking remaining work against time in an iteration

DStory mapping, arranging user activities into a narrative backbone with detailed steps

Show answer & explanation

B is correct. Wardley mapping plots the components of a value chain on two axes: visibility to the user (the value chain itself) and evolution (genesis, custom-built, product/rental, commodity/utility). This reveals which components are commoditizing (candidates to buy or outsource) and which are still novel (candidates for differentiating investment), making it a strategy-horizon technique for build-versus-buy and positioning. Story mapping, burndown charts, and RACI serve unrelated delivery or governance purposes.
↗ IIBA Product Ownership Analysis guidance — Strategy Horizon (Product)

5/5 · Strategy Horizon (Product)

Before finalizing next year's product strategy, a product owner wants to systematically examine external political, economic, social, technological, legal, and environmental factors that could affect the product's market position. Which technique should be used?

ASprint Retrospective

BRoot Cause Analysis (5 Whys)

CPESTLE Analysis

DBacklog Refinement

Show answer & explanation

C is correct. PESTLE analysis is designed to scan external political, economic, social, technological, legal, and environmental factors that influence strategic direction, making it a fitting Strategy Horizon technique; root cause analysis, retrospectives, and backlog refinement all address internal team or delivery-level concerns rather than the external market environment.
↗ IIBA Product Ownership Analysis guidance — Strategy Horizon (Product)

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Other IIBA-CPOA areas

The same kind of free sample for every other section of the IIBA-CPOA bank:

Initiative Horizon (Product)74 q Delivery Horizon (Product)74 q Product Ownership Practices76 q

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