SPP Innovation & Growth Strategy 3

Question 1

A startup uses a minimum viable product (MVP) to test assumptions with real customers before full-scale development. This practice originates from which methodology?

Accepted Answer

Lean Startup

Answer

Eric Ries's Lean Startup methodology centers on the Build-Measure-Learn loop with MVPs to validate hypotheses with minimum waste.

Question 2

Which metric best measures whether a new product innovation is gaining genuine traction with customers beyond early adopters?

Accepted Answer

Cohort retention rate over 90 days

Answer

Cohort retention over 90 days shows whether new users continue engaging after novelty wears off, distinguishing real traction from a curiosity spike.

Question 3

Platform business models create value primarily by facilitating interactions between which parties?

Accepted Answer

Two or more distinct user groups

Answer

Platforms (e.g., Uber, Airbnb, Apple App Store) orchestrate exchanges between two or more distinct sides—producers and consumers—generating network effects.

Question 4

A firm earns high market share in a fast-growing market. According to the BCG matrix, this business unit is classified as a:

Accepted Answer

Star

Answer

Stars have high relative market share in high-growth markets; they typically require continued investment but are expected to become cash cows as growth slows.

Question 5

The concept of 'ambidexterity' in corporate innovation refers to an organization's ability to simultaneously:

Accepted Answer

Exploit current capabilities and explore new opportunities

Answer

Organizational ambidexterity—coined by O'Reilly and Tushman—is the capacity to exploit mature businesses for cash while simultaneously exploring innovations that may cannibalize them.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Innovation & Growth Strategy 3