CIMA Business Strategy and Competitive Environment 3

Question 1

What does the term 'core competence' mean in strategic management?

Accepted Answer

A unique capability or strength that gives an organization a sustainable competitive advantage

Answer

The minimum skills required to operate in an industry

Answer

The financial resources available for strategic investment

Answer

The number of qualified managers in an organization

Question 2

In a 'balanced scorecard', performance is measured across four perspectives. Which perspective focuses on how the organization creates value through learning and innovation?

Accepted Answer

Learning and growth perspective

Answer

Financial perspective

Answer

Customer perspective

Answer

Internal business process perspective

Question 3

Which strategic option involves an organization withdrawing from a particular market or business area?

Accepted Answer

Retrenchment

Answer

Diversification

Answer

Market development

Answer

Forward integration

Question 4

The 'resource-based view' of strategy focuses primarily on which of the following?

Accepted Answer

Internal resources and capabilities as sources of competitive advantage

Answer

External market opportunities and competitive forces

Answer

The organization's relationships with its stakeholders

Answer

Regulatory and legal constraints on strategy

Question 5

What is 'strategic drift' in an organizational context?

Accepted Answer

The gradual divergence of an organization's strategy from the needs of its environment

Answer

A deliberate shift in strategic direction approved by the board

Answer

The process of translating strategy into operational plans

Answer

A rapid change in strategy in response to a crisis

Question 6

Which framework categorizes industries based on their attractiveness using factors such as industry size, growth rate, and competitive intensity?

Accepted Answer

GE-McKinsey Matrix

Answer

Porter's Five Forces

Answer

SWOT analysis

Answer

Ansoff Matrix