CSM CSM Innovation & Business Development 1

Question 1

What is the primary goal of disruptive innovation?

Accepted Answer

Creating simpler, more affordable solutions that displace established competitors

Answer

Disruptive innovation introduces simpler, affordable solutions that initially target overlooked segments before eventually displacing incumbent competitors.

Question 2

Which framework helps organizations evaluate whether to build, buy, or partner when pursuing new business opportunities?

Accepted Answer

Make-or-Buy-or-Ally framework

Answer

The Make-or-Buy-or-Ally framework guides strategic decisions about whether to develop capabilities internally, acquire them, or form partnerships.

Question 3

What does 'blue ocean strategy' describe?

Accepted Answer

Creating uncontested market space by making competition irrelevant

Answer

Blue ocean strategy focuses on creating new market demand in uncontested space rather than fighting over existing demand in competitive 'red ocean' markets.

Question 4

In business development, a 'value proposition' is best described as:

Accepted Answer

A clear statement of how a product solves customer problems and delivers benefits

Answer

A value proposition articulates the unique benefits a product or service delivers to customers and why they should choose it over alternatives.

Question 5

What is the primary purpose of a 'stage-gate process' in new product development?

Accepted Answer

To provide structured checkpoints where projects are evaluated before advancing

Answer

A stage-gate process divides product development into stages separated by gates where management evaluates progress and decides whether to continue, redirect, or kill the project.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM CSM Innovation & Business Development 1