Practice Test Geeks(CCM) Certified Commercial Manager Practice Test
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Portfolio Management & Strategy Flashcards

7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Portfolio Management & Strategy flashcards as text

  1. In the GE-McKinsey Nine-Box Matrix, a business unit rated 'high' on industry attractiveness and 'medium' on competitive strength should be:

    Answer: Selectively invested in to build strength

    A high-attractiveness, medium-strength unit warrants selective investment to move it toward the top-right (invest/grow) zone.

  2. Corporate-level strategy differs from business-level strategy primarily in that it focuses on:

    Answer: Which markets and businesses the firm should participate in

    Corporate-level strategy determines the scope of the firm—which industries, markets, and business units to include in the portfolio.

  3. A company sells a non-core division to focus resources on its primary business. This action is best described as:

    Answer: Divestiture

    Divestiture involves selling off a business unit or division, often to sharpen strategic focus and redeploy capital.

  4. Which concept describes the additional value created when two merged companies are worth more together than as separate entities?

    Answer: Synergy

    Synergy occurs when combined operations generate more value—through cost savings, revenue growth, or capability sharing—than the sum of separate parts.

  5. A portfolio manager uses a 'parenting advantage' framework to evaluate whether corporate headquarters adds or destroys value for each business unit. This approach was developed by:

    Answer: Campbell, Goold, and Alexander

    Campbell, Goold, and Alexander developed the parenting advantage concept, arguing that the parent must add more value than any alternative owner.

  6. When a commercial manager applies scenario planning to a product portfolio, the primary objective is to:

    Answer: Identify strategic responses to multiple plausible future environments

    Scenario planning prepares the organization to respond effectively to different plausible futures rather than predicting one specific outcome.

  7. A 'portfolio gap' in strategic planning refers to:

    Answer: The difference between projected performance of the existing portfolio and the desired future state

    A portfolio gap is the shortfall between where the current business portfolio is heading and where the organization wants to be, driving strategic initiatives.