BBM Degree in Business Management Strategy 4

Question 1

A company experiencing 'strategic drift' is characterized by:

Accepted Answer

Incrementally adapting its strategy in ways that fail to keep pace with environmental change

Answer

Strategic drift occurs when a company's strategy gradually falls out of alignment with its environment due to slow, incremental changes that collectively lag behind external shifts.

Question 2

The primary purpose of a balanced scorecard in strategic management is to:

Accepted Answer

Translate strategy into a set of financial and non-financial performance measures

Answer

The balanced scorecard, developed by Kaplan and Norton, aligns organizational activities with strategy by measuring performance across financial, customer, internal process, and learning perspectives.

Question 3

Which of the following is an example of related diversification?

Accepted Answer

A software company acquiring a cybersecurity firm

Answer

Related diversification involves entering industries that share strategic fit with existing businesses, such as similar technologies, customers, or distribution channels.

Question 4

In strategic management, 'emergent strategy' differs from 'deliberate strategy' in that it:

Accepted Answer

Arises from patterns in decisions made without prior intentions or formal plans

Answer

Emergent strategies, as described by Mintzberg, develop organically from organizational actions and decisions rather than from formal strategic planning processes.

Question 5

A company with a high degree of vertical integration would most likely:

Accepted Answer

Own and control multiple stages of its supply chain from raw materials to distribution

Answer

Vertical integration means owning multiple links in the supply chain (upstream suppliers and/or downstream distributors), reducing dependence on external parties.

BBM - Business Management Degree Practice Test

BBM - Business Management Degree Practice Test

BBM Degree in Business Management Strategy 4