GMC Strategic Planning & Analysis 2 — Questions and Answers
Question 1: Which framework helps growth teams evaluate market opportunities by examining Political, Economic, Social, Technological, Environmental, and Legal factors?
- SWOT Analysis
- PESTEL Analysis (Correct answer)
- Porter's Five Forces
- BCG Matrix
Correct answer: PESTEL Analysis
PESTEL Analysis examines six macro-environmental factors that can impact a company's strategic growth opportunities.
Question 2: A growth team is deciding which market segments to prioritize. The TAM/SAM/SOM framework helps them determine what?
- Total addressable, serviceable addressable, and serviceable obtainable market sizes (Correct answer)
- Time, assets, and sales operations metrics
- Top acquisition, secondary acquisition, and organic metrics
- Total average monthly, seasonal, and occasional market data
Correct answer: Total addressable, serviceable addressable, and serviceable obtainable market sizes
TAM/SAM/SOM breaks down market sizing into total potential, realistically reachable, and actually capturable segments.
Question 3: When a growth strategy focuses on increasing revenue from existing customers rather than acquiring new ones, this is called:
- Market penetration
- Market development
- Expansion revenue growth (Correct answer)
- Diversification
Correct answer: Expansion revenue growth
Expansion revenue growth (upsell, cross-sell, seat expansion) focuses on monetizing the existing customer base more deeply.
Question 4: In the AARRR growth metrics framework, which stage focuses on users returning to the product after their initial visit?
- Acquisition
- Activation
- Retention (Correct answer)
- Revenue
Correct answer: Retention
Retention measures whether users continue engaging with the product over time after their initial experience.
Question 5: A company's growth strategy shows high market share in a slow-growth market. According to the BCG Matrix, this product is classified as a:
- Star
- Question Mark
- Cash Cow (Correct answer)
- Dog
Correct answer: Cash Cow
Cash Cows have high market share in low-growth markets, generating steady profits with minimal investment.
Question 6: Which metric best measures the efficiency of a growth team's paid acquisition efforts over time?
- Monthly Active Users (MAU)
- Customer Acquisition Cost (CAC) payback period (Correct answer)
- Net Promoter Score (NPS)
- Daily Active Users / Monthly Active Users ratio
Correct answer: Customer Acquisition Cost (CAC) payback period
CAC payback period measures how many months it takes to recoup the cost of acquiring a customer through their generated revenue.
Question 7: A growth marketer uses cohort analysis primarily to:
- Segment users by demographics for ad targeting
- Compare behavior of user groups acquired at different times (Correct answer)
- Calculate total revenue per product line
- Identify the highest-traffic landing pages
Correct answer: Compare behavior of user groups acquired at different times
Cohort analysis groups users by acquisition date or shared characteristic to track how their behavior evolves over time.
Which framework helps growth teams evaluate market opportunities by examining Political, Economic, Social, Technological, Environmental, and Legal factors?