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
A management consultant is advising a client on corporate-level strategy. Which of the following is a corporate-level strategic decision?
Answer: Deciding which industries or markets to compete in
Corporate-level strategy determines the scope of the firm, including which industries and markets it should enter, exit, or maintain presence in.
The concept of 'dynamic capabilities' in strategic management refers to a firm's ability to:
Answer: Sense, seize, and reconfigure resources as the environment changes
Dynamic capabilities, as defined by Teece, Pisano, and Shuen, enable firms to adapt by integrating, building, and reconfiguring internal and external competencies.
Which growth strategy involves a company entering new markets with new products simultaneously?
Answer: Diversification
Diversification in the Ansoff Matrix involves launching new products into new markets, carrying the highest risk of all four growth strategies.
A firm's 'sustainable competitive advantage' is best described as:
Answer: A cost or differentiation advantage that competitors cannot easily replicate
A sustainable competitive advantage is durable because it is based on resources or capabilities that are valuable, rare, inimitable, and non-substitutable (VRIN).
In strategic planning, a 'stretch goal' is best characterized as:
Answer: An ambitious goal that requires significant capability building to achieve
Stretch goals are deliberately ambitious objectives that push organizations beyond their current capabilities, fostering innovation and transformation.
Which of the following best describes a 'market development' strategy in Ansoff's framework?
Answer: Selling existing products to new customer segments or geographies
Market development involves taking existing products and expanding into new markets, whether geographic regions or new customer segments.
When evaluating strategic options, the SAF criteria stands for:
Answer: Suitability, Acceptability, Feasibility
The SAF criteria—Suitability, Acceptability, and Feasibility—provide a structured way to evaluate whether a strategy is appropriate, viable, and acceptable to stakeholders.