Business Strategy and Competitive Environment Flashcards
6 cards from real CIMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business Strategy and Competitive Environment flashcards as text
According to Porter's Five Forces, which force relates to the threat from companies that produce alternative products satisfying the same customer need?
Answer: Threat of substitutes
The threat of substitutes refers to alternative products or services that can satisfy the same customer need, limiting pricing power.
In CIMA's strategic planning process, which analysis tool examines Strengths, Weaknesses, Opportunities, and Threats?
Answer: SWOT
SWOT analysis examines internal Strengths and Weaknesses alongside external Opportunities and Threats to inform strategic decisions.
Ansoff's Matrix suggests that 'market development' involves which of the following strategies?
Answer: Selling existing products to new markets
Market development involves selling existing products or services to new markets or customer segments.
Which of the following best describes a 'cost leadership' competitive strategy as defined by Porter?
Answer: Achieving the lowest cost of production in the industry
Cost leadership involves achieving the lowest cost base in the industry to offer competitive prices and/or higher margins.
The PESTEL framework is used to analyze which type of business environment?
Answer: Macro-environmental external factors
PESTEL analyzes macro-environmental factors: Political, Economic, Social, Technological, Environmental, and Legal influences on an organization.
In strategic management, what does a 'strategic gap' represent?
Answer: The difference between current performance and desired future objectives
A strategic gap is the difference between where an organization currently is and where it wants to be in terms of its future objectives.