CBS Business Growth & Development 2

Question 1

A company pursuing a 'blue ocean strategy' is primarily focused on:

Accepted Answer

Creating uncontested market space and making competition irrelevant

Answer

Blue ocean strategy, coined by Kim and Mauborgne, focuses on creating new demand in uncontested market space rather than competing in existing 'red ocean' markets.

Question 2

Which Ansoff Matrix quadrant carries the highest risk for business growth?

Accepted Answer

Diversification

Answer

Diversification (new products in new markets) carries the highest risk because the company operates outside its existing expertise in both product and market dimensions.

Question 3

A franchise model is best described as a growth strategy that:

Accepted Answer

Allows third parties to operate under the brand in exchange for fees and royalties

Answer

Franchising enables rapid geographic expansion by leveraging franchisees' capital while the franchisor earns fees and royalties in exchange for brand rights and operational systems.

Question 4

The 'hockey stick' growth curve in startups typically describes:

Accepted Answer

Slow initial growth followed by a sharp exponential increase

Answer

The hockey stick curve reflects a typical startup trajectory: a long flat period of slow growth followed by a sudden steep upward inflection as the business scales.

Question 5

Which metric best measures the efficiency of a company's customer acquisition efforts relative to long-term value?

Accepted Answer

LTV:CAC ratio

Answer

The LTV:CAC (Lifetime Value to Customer Acquisition Cost) ratio directly measures whether the long-term revenue from a customer justifies the cost to acquire them, making it a key growth efficiency metric.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS Business Growth & Development 2