#1
What is SWOT analysis used for in business strategy?
Evaluating internal strengths and weaknesses
ExplanationAssessing internal factors to inform strategy.
#2
What does the term 'core competency' refer to in the context of business strategy?
A unique capability that gives a firm a competitive advantage
ExplanationDistinctive strengths that set a company apart.
#3
What is the purpose of a SWOT analysis in business?
Analyzing internal strengths and weaknesses
ExplanationAssessing internal factors to inform strategy.
#4
What is the primary focus of Porter's Five Forces framework in business strategy?
Assessing the competitive forces in an industry
ExplanationUnderstanding market dynamics and competitive intensity.
#5
What is the primary purpose of a mission statement in business strategy?
Communicating the organization's purpose and values
ExplanationDefining the fundamental objectives and ethos of the company.
#6
Which of the following is a cost leadership strategy?
Low-cost production
ExplanationStriving for cost efficiency to gain a competitive edge.
#7
What is the concept of the Blue Ocean Strategy?
Creating new markets and value innovation
ExplanationSeeking uncontested market spaces for growth.
#8
Which type of innovation involves making incremental improvements to existing products or processes?
Sustaining innovation
ExplanationEnhancing current offerings for continued relevance.
#9
What is the purpose of a pestle analysis in business strategy?
Analyzing macro-environmental factors
ExplanationUnderstanding external influences on the business.
#10
Which of the following is a differentiation strategy?
Product innovation
ExplanationCreating unique offerings to stand out in the market.
#11
What does the term 'strategic alignment' mean in the context of business strategy?
Aligning organizational activities with strategic goals
ExplanationEnsuring actions support overarching objectives.
#12
In decision-making, what does the term 'opportunity cost' refer to?
The value of the best alternative forgone
ExplanationThe benefit lost by choosing one option over another.
#13
What is the primary purpose of a decision tree in business strategy?
Evaluating various decision alternatives
ExplanationVisualizing options and their potential outcomes.
#14
What is the primary goal of a diversification strategy in business?
Minimizing risk by entering new markets
ExplanationSpreading risk across different market segments.
#15
In decision-making, what does the term 'bounded rationality' mean?
Considering a limited amount of information
ExplanationMaking choices within constraints of time and resources.
#16
What role does benchmarking play in strategic decision-making?
Comparing performance with industry standards
ExplanationIdentifying areas for improvement by measuring against industry norms.
#17
In the context of decision-making, what is the purpose of a decision matrix?
Prioritizing alternatives based on criteria
ExplanationSystematically evaluating options against set criteria.