CS Strategic Planning & Development 3

Question 1

In Porter's Five Forces model, the threat of substitutes is highest when:

Accepted Answer

Buyers face minimal switching costs and substitutes perform comparably

Answer

Threat of substitutes intensifies when buyers can easily switch to alternatives that deliver equivalent or superior value at comparable or lower cost.

Question 2

A balanced scorecard approach to strategy implementation measures performance across four perspectives. Which perspective directly links customer satisfaction to financial outcomes?

Accepted Answer

Customer perspective

Answer

The customer perspective captures how the organization is perceived by customers and links their satisfaction metrics to financial results.

Question 3

When applying the BCG Growth-Share Matrix, a business unit with high relative market share in a low-growth industry is classified as a:

Accepted Answer

Cash cow

Answer

Cash cows have dominant market positions in mature, slow-growing industries and generate strong cash flows with limited reinvestment needed.

Question 4

A company's strategy map is primarily used to:

Accepted Answer

Visualize cause-and-effect relationships between strategic objectives

Answer

A strategy map illustrates how value is created by showing the causal links between objectives across the four BSC perspectives.

Question 5

Which of the following best describes a 'blue ocean strategy'?

Accepted Answer

Creating uncontested market space by making competition irrelevant

Answer

Blue ocean strategy involves creating new demand in uncontested market space rather than competing in overcrowded existing markets.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS Strategic Planning & Development 3