SPP Strategy Formulation & Development 2

Question 1

Which analytical tool maps an organization's strategic position by plotting business units based on market growth rate and relative market share?

Accepted Answer

BCG Growth-Share Matrix

Answer

The BCG Growth-Share Matrix categorizes business units as Stars, Cash Cows, Question Marks, or Dogs based on market growth rate and relative market share.

Question 2

In the context of strategy formulation, a 'Blue Ocean Strategy' is best described as:

Accepted Answer

Creating uncontested market space by making competition irrelevant

Answer

Blue Ocean Strategy, developed by Kim and Mauborgne, involves creating new market space (blue oceans) rather than competing in saturated markets (red oceans).

Question 3

A company pursues a strategy of selling existing products to new customer segments. According to the Ansoff Matrix, this is called:

Accepted Answer

Market development

Answer

Market development involves taking existing products into new markets or customer segments, representing moderate risk in the Ansoff Matrix.

Question 4

Which element of the McKinsey 7-S Framework is considered a 'hard' element?

Accepted Answer

Strategy

Answer

Strategy, Structure, and Systems are the three 'hard' elements in McKinsey's 7-S Framework because they are tangible and directly influenced by management.

Question 5

What is the primary purpose of conducting a stakeholder analysis during strategy formulation?

Accepted Answer

To identify and assess the influence and interests of parties affected by strategic decisions

Answer

Stakeholder analysis identifies key parties, assesses their power and interest, and helps strategists manage relationships to reduce resistance and gain support.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Strategy Formulation & Development 2