MBA Business Strategy 3

Question 1

What is 'disruptive innovation' according to Clayton Christensen?

Accepted Answer

An innovation that initially targets overlooked segments with simpler solutions, then moves upmarket to displace incumbents

Answer

Innovation that dramatically improves a product for existing high-end customers

Answer

A radical technological breakthrough requiring massive R&D investment

Answer

Government-mandated changes to industry standards

Question 2

What is 'core competency' as defined by Prahalad and Hamel?

Accepted Answer

A unique combination of skills, knowledge, and technologies that provides competitive advantage and cannot be easily imitated

Answer

The fundamental financial ratio that drives profitability

Answer

The company's best-selling product line

Answer

The most experienced team within the organization

Question 3

What is 'stakeholder analysis' in strategic management?

Accepted Answer

Identifying and understanding the interests, power, and influence of all parties affected by or affecting an organization's strategy

Answer

Analyzing stock market performance metrics

Answer

Analyzing the financial returns to shareholders only

Answer

Evaluating employee satisfaction and performance metrics

Question 4

What is 'strategic group analysis'?

Accepted Answer

Identifying clusters of competitors within an industry that follow similar strategies along key dimensions

Answer

Analyzing the performance of top management teams

Answer

Grouping customers by purchasing behavior

Answer

Mapping the geographic distribution of industry competitors

Question 5

What does 'strategic intent' refer to in management theory?

Accepted Answer

An ambitious, long-term aspiration that focuses organizational energy and guides resource allocation toward a stretch goal

Answer

The written mission statement published in annual reports

Answer

The short-term quarterly financial targets

Answer

The legal obligations in corporate governance documents

Question 6

What is 'merger and acquisition' (M&A) activity primarily used for in corporate strategy?

Accepted Answer

Rapidly acquiring new capabilities, market access, talent, or market share that would be slower to build organically

Answer

Fulfilling regulatory compliance requirements

Answer

Managing day-to-day cash flow needs

Answer

Reducing the number of products in a company's portfolio