BBM Degree in Business Management Strategy 3

Question 1

Which growth strategy involves a company selling existing products to new geographic markets?

Accepted Answer

Market development

Answer

Market development, per the Ansoff Matrix, involves taking current products into new markets, such as entering international markets or new customer segments.

Question 2

A company pursuing a differentiation strategy primarily seeks to:

Accepted Answer

Offer unique products or services for which customers will pay a premium

Answer

Differentiation strategy, per Porter's Generic Strategies, involves creating a product perceived as unique industry-wide, allowing the firm to charge premium prices.

Question 3

Stakeholder analysis in strategic management is primarily used to:

Accepted Answer

Identify and prioritize groups who affect or are affected by the firm's strategy

Answer

Stakeholder analysis maps all parties with interests in the company and assesses their influence and expectations to inform strategic decisions.

Question 4

In a SWOT analysis, an 'opportunity' is best defined as:

Accepted Answer

A favorable external condition that could enhance firm performance

Answer

Opportunities in SWOT analysis are positive external environmental factors—such as market trends or regulatory changes—that the firm can leverage to its advantage.

Question 5

The resource-based view (RBV) of strategy suggests competitive advantage stems from:

Accepted Answer

Unique internal resources and capabilities that are valuable, rare, inimitable, and non-substitutable

Answer

The RBV, associated with Barney, argues that sustained competitive advantage comes from internal resources meeting the VRIO criteria.

BBM - Business Management Degree Practice Test

BBM - Business Management Degree Practice Test

BBM Degree in Business Management Strategy 3