CSM Strategic Planning & Implementation 3

Question 1

Which of Porter's generic strategies involves targeting a narrow market segment with either low cost or differentiation?

Accepted Answer

Focus

Answer

Porter's Focus strategy concentrates on a specific market niche, applying either cost or differentiation advantages within that segment.

Question 2

A company conducts a PESTEL analysis primarily to:

Accepted Answer

Identify macro-environmental factors affecting strategy

Answer

PESTEL examines Political, Economic, Social, Technological, Environmental, and Legal factors in the external macro-environment.

Question 3

In the context of strategic management, 'core competencies' are best defined as:

Accepted Answer

Unique capabilities that provide sustainable competitive advantage and are hard to replicate

Answer

Core competencies, as defined by Prahalad and Hamel, are deeply embedded capabilities that differentiate a firm and are difficult for competitors to imitate.

Question 4

Which tool plots business units on axes of market growth rate and relative market share to guide portfolio strategy?

Accepted Answer

BCG Growth-Share Matrix

Answer

The BCG matrix categorizes business units as Stars, Cash Cows, Question Marks, or Dogs to inform resource allocation decisions.

Question 5

When implementing strategy, 'cascading goals' means:

Accepted Answer

Breaking high-level strategic objectives into aligned goals at every organizational level

Answer

Cascading ensures that enterprise-level strategy is translated into department and individual goals, creating alignment throughout the organization.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM Strategic Planning & Implementation 3