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 consultant is helping a client apply the 'parenting advantage' concept. This involves evaluating whether the corporate parent:
Answer: Adds more value to business units than any other corporate owner would
Parenting advantage, from the Ashridge Portfolio Matrix, occurs when a corporate parent creates more value for its businesses than rival parent companies would.
In a TOWS matrix, a 'WT' strategy involves:
Answer: Minimizing weaknesses while avoiding threats
WT (Weakness-Threat) strategies are defensive, aimed at minimizing internal weaknesses and avoiding exposure to external threats.
Which competitive strategy involves offering a broad range of products at the lowest possible cost while maintaining acceptable quality?
Answer: Broad cost leadership
Broad cost leadership targets a wide market and competes by achieving the lowest cost structure, enabling lower prices than rivals across the industry.
A company implementing a 'platform strategy' primarily aims to:
Answer: Create a foundation that facilitates transactions between external producers and consumers
Platform strategies create value by connecting multiple user groups and enabling interactions between them, as seen with companies like Airbnb and Uber.
The 'strategic management process' typically begins with:
Answer: Conducting an environmental analysis
The strategic management process starts with environmental analysis (internal and external scanning) to understand the context before strategy formulation.
A firm with a 'transnational strategy' seeks to achieve:
Answer: Both global efficiency and local responsiveness simultaneously
The transnational strategy, as defined by Bartlett and Ghoshal, simultaneously pursues global efficiency, local responsiveness, and worldwide learning.
When is a 'related diversification' strategy typically preferred over 'unrelated diversification'?
Answer: When shared resources or capabilities can create synergies across business units
Related diversification is preferred when businesses can share resources, capabilities, or value chain activities, creating operational synergies.