Business Strategy Development Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Strategy Development flashcards as text
Which strategic framework uses four quadrants—Stars, Cash Cows, Question Marks, and Dogs—to allocate resources across business units?
Answer: BCG Growth-Share Matrix
The BCG Growth-Share Matrix classifies business units by market growth rate and relative market share into these four categories.
A company pursuing a 'focus differentiation' strategy is targeting:
Answer: A narrow market segment with highly tailored, premium offerings
Focus differentiation combines a narrow target market with product or service uniqueness to serve that segment exclusively.
In scenario planning, what is the primary purpose of identifying 'driving forces'?
Answer: To understand key uncertainties that will shape future environments
Driving forces are macro-level trends and uncertainties whose outcomes will most significantly influence which future scenarios materialize.
A firm has high operational efficiency but struggles to differentiate its products. According to the strategy clock, it is most likely positioned as:
Answer: Low price/low value
The 'low price/low value' segment on Bowman's Strategy Clock represents firms offering reduced benefits at lower prices with minimal differentiation.
Which analytical tool helps strategists assess the degree of rivalry, threat of entry, supplier power, buyer power, and substitutes in an industry?
Answer: Porter's Five Forces
Porter's Five Forces framework analyzes the five competitive forces that determine industry attractiveness and long-run profitability.
When a company uses a 'blue ocean strategy,' it is primarily seeking to:
Answer: Create uncontested market space by making competition irrelevant
Blue ocean strategy, developed by Kim and Mauborgne, focuses on value innovation to create new demand rather than competing in existing markets.
The 'strategic fit' concept in business strategy refers to:
Answer: Alignment between a firm's strategy, resources, and external environment
Strategic fit describes the degree to which a firm's internal capabilities and resources align with external opportunities and market demands.