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

Horizontal integration involves acquiring or merging with a competitor at the same supply chain stage to gain market share or reduce competition.

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

Inbound logistics is a primary activity in Porter's Value Chain, directly involved in creating and delivering a product or service.

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

The BCG Matrix helps organizations manage their portfolio of business units by categorizing them based on market growth rate and relative market share.

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

A joint venture involves two or more companies creating a new, separate legal entity in which they share ownership, control, and profits.

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

First mover advantage refers to the competitive benefits gained by being the first company to enter a new market or adopt a new technology.

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test

CIMA Business Strategy and Competitive Environment 2