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

A core competence is a unique organizational capability that provides a sustainable competitive advantage and is difficult for competitors to replicate.

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

The learning and growth perspective of the balanced scorecard focuses on how people, systems, and organizational procedures support the achievement of goals.

Question 3

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

Accepted Answer

Retrenchment

Answer

Retrenchment is a strategic option involving withdrawal from a market, product line, or business area, often to focus on core activities.

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

The resource-based view holds that sustainable competitive advantage stems from an organization's unique internal resources and capabilities.

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

Strategic drift occurs when an organization's strategy gradually becomes misaligned with its changing environment, often due to resistance to change.

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 3