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Scaled Agile SAFe Agile Product Manager (APM 5.1) Sample Questions (Q56-Q61):
NEW QUESTION # 56
What is a key factor in determining the value of a market segment?
- A. Time criticality in product delivery
- B. The amount Customers are willing to pay for products or services
- C. Availability of materials and people in sufficient quantities
- D. Where the products and services will be sold
Answer: B
Explanation:
The value of a market segment is determined by the potential revenue and profit that can be generated from selling products or services to that segment. One of the key factors that influences the value of a market segment is the amount customers are willing to pay for products or services, which reflects their perceived value and price sensitivity. Customers who are willing to pay more for products or services that meet their needs and preferences are more valuable than customers who are willing to pay less or switch to cheaper alternatives. Therefore, understanding the customer's willingness to pay is essential for setting optimal prices and maximizing the value of a market segment.
Reference:
Market Segmentation: Definition, Example, Types, Benefits: This article from Investopedia explains the concept and purpose of market segmentation, and describes the four primary types of market segmentation: demographic, geographic, psychographic, and behavioral.
Value-based Market Segmentation - Divide Markets into Value Categories: This article from Marketing Insider provides a detailed guide on how to conduct a value-based market segmentation, which is based on the actual value perceived and delivered to customers. It also discusses the benefits and challenges of value-based market segmentation, and provides some examples and best practices.
Market Segmentation: Definition, Types, Benefits, & Best Practices: This article from Qualtrics XM provides an overview of market segmentation, and discusses the benefits and best practices of market segmentation for businesses. It also provides some examples and tips on how to segment markets effectively.
NEW QUESTION # 57
The Lean Portfolio Management team is reviewing new work moving through the Portfolio Kanban. Request 1 is incremental innovation and can likely be done by one ART in one PI. Request 2 is a major opportunity impacting multiple stages of the Value Stream, likely requiring the participation of two ARTs over multiple PIs. Which backlog should each request be added?
- A. Request 1 should be added to the ART Backlog as a Feature; Request 2 should be added to the Portfolio Backlog as an Epic
- B. Request 1 should be added to the Portfolio Backlog as an Epic; Request 2 should be added to the ART Backlog as a Feature
- C. Both should be added to the Portfolio Backlog
- D. Both should be added to the ART Backlog
Answer: A
Explanation:
According to the Scaled Agile Framework, the Portfolio Backlog contains the highest-level portfolio epics, which are large, cross-cutting initiatives that require analysis, approval, and funding by the Lean Portfolio Management (LPM) team1. The ART Backlog contains the features, which are services provided by the system that fulfill stakeholder needs2. Features are derived from epics and are typically implemented by one Agile Release Train (ART) within one Program Increment (PI)3. Therefore, Request 1, which is an incremental innovation that can be done by one ART in one PI, should be added to the ART Backlog as a Feature. Request 2, which is a major opportunity impacting multiple stages of the Value Stream and requiring the participation of two ARTs over multiple PIs, should be added to the Portfolio Backlog as an Epic.
References:
* Portfolio Backlog: This article from the Scaled Agile Framework explains the purpose, structure, and content of the Portfolio Backlog, and how it is managed by the LPM team using the Portfolio Kanban
* system.
* Features: This article from the Scaled Agile Framework defines the concept of features, their attributes, and their relationship with epics and stories.
* ART Backlog: This article from the Scaled Agile Framework describes the role, composition, and management of the ART Backlog, and how it supports the PI Planning process.
NEW QUESTION # 58
Where are opportunities found in the strategic sweet spot?
- A. Product Vision
- B. Solution Intent
- C. Competitors offerings
- D. Customer needs
Answer: D
Explanation:
The strategic sweet spot of a company is where it meets customer's needs in a way that rivals can't, given the context in which it competes12. It is where the company's capabilities match customer needs in a way that the competition can't. Finding the strategic sweet spot is a key challenge of strategic thinking and a source of competitive advantage.
Reference:
How to find your strategic sweet spot and why it matters
The Strategic Sweet Spot - Harvard Business Review
NEW QUESTION # 59
A company that typically markets to small companies has a growth strategy to sell to larger organizations. The Product Manager is in charge of a new application and must recommend which of the following segments to address first.
Segment 1: Top 1,000 very large companies (over 25,000 employees); dominated by large Enterprise application vendors who sell the app as an add-on module but need to be better integrated into their other applications. Customer anecdotes indicate low satisfaction.
Segment 2: 5.8 million US-based small businesses (under 500 employees); tasks are often done in spreadsheets. Competitors are small privately-owned software companies offering desktop-based solutions.
The company already has a good market share in this segment.
What should be the recommendation for the next 12 months?
- A. Find another segment
- B. Choose both
- C. Choose segment 2
- D. Choose segment 1
Answer: D
Explanation:
Segment 1 is the better choice for the next 12 months, because it aligns with the company's growth strategy to sell to larger organizations, and it offers a higher potential value and lower competitive intensity than segment
2. Segment 1 consists of very large companies that have a need for the new application, but are dissatisfied with the current solutions offered by the large enterprise application vendors. This indicates a market opportunity for the company to provide a better integrated and more satisfying solution that can meet the needs and expectations of these customers. Segment 2, on the other hand, consists of small businesses that are already well-served by the company and its competitors, and may not have a strong demand or willingness to pay for the new application. Therefore, segment 2 offers a lower value and higher competitive intensity than segment 1.
References:
* Market Segmentation: Definition, Types, Benefits, & Best Practices: This article from Qualtrics XM provides an overview of market segmentation, and discusses the benefits and best practices of market segmentation for businesses. It also provides some examples and tips on how to segment markets effectively.
* Market Segmentation: Definition, Example, Types, Benefits - Investopedia: This article from Investopedia explains the concept and purpose of market segmentation, and describes the four primary
* types of market segmentation: demographic, geographic, psychographic, and behavioral.
* Market Segmentation: Definition, Criteria and Other Details: This article from Your Article Library provides a comprehensive guide on market segmentation, including its definition, criteria, process, levels, and bases. It also discusses the advantages and limitations of market segmentation.
NEW QUESTION # 60
The Architectural Runway is a key part of which aspect of the Design Thinking model?
- A. Sustainable
- B. Desirable
- C. Feasible
- D. Viable
Answer: C
Explanation:
The Architectural Runway is a key part of the Feasible aspect of the Design Thinking model. The Design Thinking model is a framework that guides the creation of innovative solutions that are desirable, viable, feasible, and sustainable. The Feasible aspect focuses on the technical and operational aspects of the solution, such as the architecture, infrastructure, integration, performance, and security. The Architectural Runway is a concept that describes the existing code, components, and technical infrastructure that enable the development and delivery of near-term features without excessive redesign and delay. The Architectural Runway supports the Feasible aspect by providing the necessary technical foundation and alignment for developing business initiatives and implementing new features and capabilities.
References:
* Architectural Runway - Scaled Agile Framework
* Design Thinking - Scaled Agile Framework
NEW QUESTION # 61
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