CMC Business Strategy Development 2

Question 1

Which strategic framework uses four quadrants—Stars, Cash Cows, Question Marks, and Dogs—to allocate resources across business units?

Accepted Answer

BCG Growth-Share Matrix

Answer

The BCG Growth-Share Matrix classifies business units by market growth rate and relative market share into these four categories.

Question 2

A company pursuing a 'focus differentiation' strategy is targeting:

Accepted Answer

A narrow market segment with highly tailored, premium offerings

Answer

Focus differentiation combines a narrow target market with product or service uniqueness to serve that segment exclusively.

Question 3

In scenario planning, what is the primary purpose of identifying 'driving forces'?

Accepted Answer

To understand key uncertainties that will shape future environments

Answer

Driving forces are macro-level trends and uncertainties whose outcomes will most significantly influence which future scenarios materialize.

Question 4

A firm has high operational efficiency but struggles to differentiate its products. According to the strategy clock, it is most likely positioned as:

Accepted Answer

Low price/low value

Answer

The 'low price/low value' segment on Bowman's Strategy Clock represents firms offering reduced benefits at lower prices with minimal differentiation.

Question 5

Which analytical tool helps strategists assess the degree of rivalry, threat of entry, supplier power, buyer power, and substitutes in an industry?

Accepted Answer

Porter's Five Forces

Answer

Porter's Five Forces framework analyzes the five competitive forces that determine industry attractiveness and long-run profitability.

(CMC) Chartered Management Consultant Practice Test