Certified Management Accountant Strategic Management 3

Question 1

In strategic management, 'environmental scanning' primarily involves:

Accepted Answer

Analyzing external factors such as political, economic, social, and technological trends

Answer

Environmental scanning systematically surveys external environments using frameworks like PEST/PESTLE to identify opportunities and threats facing the organization.

Question 2

Which analytical tool maps a company's activities to identify sources of competitive advantage and cost reduction opportunities?

Accepted Answer

Porter's Value Chain Analysis

Answer

Porter's Value Chain Analysis disaggregates firm activities into primary (inbound logistics, operations, etc.) and support activities to find where value is created or costs reduced.

Question 3

A company pursues a 'market penetration' strategy according to the Ansoff Matrix. This means it is:

Accepted Answer

Selling existing products to existing markets more aggressively

Answer

Market penetration in the Ansoff Matrix involves growing sales of current products in current markets through tactics like promotions, price reductions, or increased distribution.

Question 4

The 'balanced scorecard' was developed primarily to address the limitation that:

Accepted Answer

Financial metrics alone do not capture all drivers of long-term organizational performance

Answer

Kaplan and Norton developed the balanced scorecard to complement financial measures with non-financial perspectives (customer, internal process, learning & growth) for a complete performance picture.

Question 5

Which of the following represents a 'first-mover advantage'?

Accepted Answer

Gaining brand loyalty and switching costs by entering a market before rivals

Answer

First-mover advantages arise when early market entrants gain durable benefits like brand recognition, customer loyalty, and favorable access to resources before competitors arrive.

Certified Management Accountant Practice Test

Certified Management Accountant Practice Test

Certified Management Accountant Strategic Management 3