CAM Strategic Planning 3 — Questions and Answers
Question 1: A 'growth-share matrix' (BCG Matrix) categorizes business units into Stars, Cash Cows, Question Marks, and Dogs based on:
- Customer satisfaction scores and revenue
- Market growth rate and relative market share (Correct answer)
- Profit margin and sales volume
- Product age and competitive price
Correct answer: Market growth rate and relative market share
The BCG Matrix plots business units on axes of market growth rate (vertical) and relative market share (horizontal).
Question 2: When an account manager conducts a gap analysis, the primary purpose is to:
- Identify the difference between current performance and desired future state (Correct answer)
- Benchmark pricing against three competitors
- Review the contract for compliance issues
- Assess the client's credit risk
Correct answer: Identify the difference between current performance and desired future state
Gap analysis compares where the account is now versus where it needs to be, highlighting areas requiring action.
Question 3: A strategic account manager discovers that a key client is considering insourcing a service currently provided by the vendor. The best strategic response is to:
- Reduce pricing immediately to retain the contract
- Conduct a value analysis demonstrating the total cost of insourcing vs. outsourcing (Correct answer)
- Escalate the issue to legal to enforce contract terms
- Offer a free pilot of a new product
Correct answer: Conduct a value analysis demonstrating the total cost of insourcing vs. outsourcing
A value analysis that compares full insourcing costs with outsourcing value makes a data-driven case for retaining the business.
Question 4: The 'balanced scorecard' approach to measuring account strategy performance typically includes which four perspectives?
- Finance, customer, internal processes, learning & growth (Correct answer)
- Revenue, cost, satisfaction, retention
- People, process, product, price
- Awareness, consideration, purchase, loyalty
Correct answer: Finance, customer, internal processes, learning & growth
Kaplan and Norton's Balanced Scorecard uses financial, customer, internal process, and learning & growth perspectives.
Question 5: In the context of strategic planning, 'resource allocation' refers to:
- Distributing sales quota among team members
- Assigning time, budget, and personnel to highest-priority strategic initiatives (Correct answer)
- Dividing commission among account managers
- Scheduling product demos for the quarter
Correct answer: Assigning time, budget, and personnel to highest-priority strategic initiatives
Resource allocation ensures that time, budget, and people are directed toward activities that deliver the greatest strategic return.
Question 6: Which type of strategy involves an account manager focusing on a narrow segment of a client's needs and becoming the dominant provider in that niche?
- Cost leadership
- Differentiation
- Focus (niche) strategy (Correct answer)
- Market penetration
Correct answer: Focus (niche) strategy
A focus strategy targets a specific segment or need within the account and aims to serve it better than any alternative.
Question 7: An account manager reviewing a strategic plan should prioritize initiatives based on:
- The personal preferences of the sales director
- Impact on account revenue and feasibility of execution (Correct answer)
- Alphabetical order of the initiatives
- The date initiatives were first proposed
Correct answer: Impact on account revenue and feasibility of execution
Prioritization should weigh expected revenue or value impact against the effort and feasibility required to execute.
CAM Strategic Planning 3
A 'growth-share matrix' (BCG Matrix) categorizes business units into Stars, Cash Cows, Question Marks, and Dogs based on: