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

Disruptive innovation starts by serving low-end or non-consuming markets with simpler, cheaper solutions, then improves to eventually displace established market leaders.

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

Core competencies are the collective learning and unique capabilities that underpin a firm's ability to create and deliver value across multiple products or markets, and are difficult for rivals to replicate.

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

Stakeholder analysis maps all parties — customers, employees, suppliers, government, community — by their interests and influence to inform strategic decisions and manage relationships effectively.

Question 4

What is 'strategic group analysis'?

Accepted Answer

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

Answer

Strategic group analysis identifies clusters of firms in an industry that pursue similar strategies (e.g., targeting the same customer segments with similar price/quality positioning) and face similar competitive pressures.

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

Strategic intent, as described by Hamel and Prahalad, is a compelling long-term aspiration (e.g., 'encircle Caterpillar') that galvanizes the organization toward an ambitious goal beyond current capabilities.

MBA - Degree Master of Business Administration Practice Test

MBA - Degree Master of Business Administration Practice Test

MBA Business Strategy 3