Business Strategy & Client Solutions Flashcards

A client wants to know whether entering a new market is attractive based on supplier power, buyer power, substitutes, new entrants, and rivalry. Which framework fits best?

Answer: Porter's Five Forces

Porter's Five Forces assesses industry attractiveness through those five competitive pressures.

In the BCG matrix, a product with high relative market share in a low-growth market is called a:

Answer: Cash Cow

Cash cows hold high share in mature, low-growth markets and generate surplus cash.

A client plans to sell existing products to a new geographic region. On the Ansoff Matrix, this strategy is:

Answer: Market development

Market development means taking existing products into new markets.

Which test is used in the VRIO framework to judge whether a resource provides sustained competitive advantage?

Answer: Valuable, Rare, Inimitable, Organized to capture value

VRIO asks whether a resource is Valuable, Rare, Inimitable, and supported by the Organization.

A consultant sorts problem drivers so they do not overlap and together cover every possibility. This principle is known as:

Answer: MECE

MECE stands for Mutually Exclusive, Collectively Exhaustive.

Which PESTLE factor would a new data privacy regulation fall under?

Answer: Legal

Data privacy laws are legal factors in a PESTLE analysis.

According to Porter, a firm that targets a narrow segment with the lowest cost is pursuing:

Answer: Cost focus

Cost focus combines a narrow competitive scope with a low-cost advantage.