CSM CSM Innovation & Business Development 2

Question 1

What is 'open innovation' in the context of strategic management?

Accepted Answer

Leveraging external ideas, partners, and paths to market alongside internal R&D

Answer

Open innovation is a paradigm where organizations use inflows and outflows of knowledge—from customers, startups, universities, and partners—to accelerate internal innovation.

Question 2

The Business Model Canvas was primarily designed to help organizations:

Accepted Answer

Visualize, design, and challenge how a business creates and delivers value

Answer

The Business Model Canvas by Osterwalder provides a one-page visual framework covering nine building blocks that collectively describe how a business creates, delivers, and captures value.

Question 3

A 'first-mover advantage' in strategic management refers to:

Accepted Answer

Benefits gained by the first company to enter a new market or product category

Answer

First-mover advantage allows a company to build brand recognition, customer loyalty, and economies of scale before competitors enter the market.

Question 4

In Ansoff's Growth Matrix, 'market penetration' refers to:

Accepted Answer

Selling existing products to existing markets more aggressively

Answer

Market penetration involves increasing sales of existing products in existing markets through tactics like price reductions, promotions, or improved distribution.

Question 5

What distinguishes 'intrapreneurship' from entrepreneurship?

Accepted Answer

Intrapreneurship involves entrepreneurial activity within an established organization

Answer

Intrapreneurship refers to employees acting entrepreneurially within an existing company, innovating new products or processes while leveraging organizational resources.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM CSM Innovation & Business Development 2