CGM Strategic Planning & Leadership 2

Question 1

Which of Porter's Five Forces describes the ability of customers to demand lower prices or higher quality?

Accepted Answer

Bargaining power of buyers

Answer

Buyer power is the leverage customers have to push prices down or demand more value.

Question 2

In the BCG growth-share matrix, a business unit with high market share in a low-growth market is called a:

Accepted Answer

Cash cow

Answer

Cash cows generate more cash than they need to sustain, funding other units.

Question 3

Which element of a SWOT analysis refers to external conditions the company can exploit?

Accepted Answer

Opportunities

Answer

Opportunities are favorable external factors, while strengths and weaknesses are internal.

Question 4

A general manager who sets a compelling vision and inspires employees to exceed self-interest is practicing which style?

Accepted Answer

Transformational leadership

Answer

Transformational leaders motivate through vision, inspiration and individual consideration.

Question 5

Which Ansoff Matrix strategy involves selling new products into new markets?

Accepted Answer

Diversification

Answer

Diversification is the highest-risk quadrant because both product and market are new.

CGM - Certified General Manager Practice Test