CIMA Business Strategy and Competitive Environment 2

Question 1

Which growth strategy involves an organization acquiring or merging with a competitor at the same stage of the supply chain?

Accepted Answer

Horizontal integration

Answer

Vertical integration

Answer

Conglomerate diversification

Answer

Market penetration

Question 2

Porter's Value Chain divides organizational activities into primary and support activities. Which of the following is a PRIMARY activity?

Accepted Answer

Inbound logistics

Answer

Human resource management

Answer

Technology development

Answer

Procurement

Question 3

What is the Boston Consulting Group (BCG) Matrix primarily used for?

Accepted Answer

Managing a portfolio of business units based on market growth and relative market share

Answer

Analyzing a company's competitive position in its industry

Answer

Evaluating employee performance and development

Answer

Planning capital expenditure for new projects

Question 4

In the context of strategic alliances, a 'joint venture' involves which of the following?

Accepted Answer

Two or more companies creating a new, separate legal entity together

Answer

Two companies sharing marketing resources only

Answer

One company acquiring a minority stake in another

Answer

Companies agreeing informally to cooperate on a project

Question 5

Which concept describes the competitive advantage gained when a company enters a new market before its rivals?

Accepted Answer

First mover advantage

Answer

Late mover advantage

Answer

Cost advantage

Answer

Differentiation advantage

Question 6

According to the McKinsey 7S Framework, which of the following is classified as a 'hard' element?

Accepted Answer

Strategy

Answer

Shared values

Answer

Style

Answer

Skills