#1
Which of the following is a primary component of SWOT analysis?
Opportunities
ExplanationOpportunities are one of the key elements analyzed in SWOT analysis, focusing on favorable external factors.
#2
Which strategic analysis tool assesses the internal environment of an organization through examining its strengths, weaknesses, opportunities, and threats?
SWOT Analysis
ExplanationSWOT Analysis evaluates internal Strengths and Weaknesses, as well as external Opportunities and Threats.
#3
Which type of innovation involves making incremental improvements to existing products or processes?
Sustaining Innovation
ExplanationSustaining Innovation focuses on incremental improvements to existing products or processes, enhancing their performance.
#4
What is the main purpose of the McKinsey 7S Framework in strategic management?
Assess organizational effectiveness and alignment
ExplanationMcKinsey 7S Framework evaluates organizational effectiveness and alignment by examining seven key elements.
#5
In the context of business competitiveness, what is the focus of the VRIO framework?
Resource-based analysis
ExplanationVRIO framework focuses on resource-based analysis, evaluating the Value, Rarity, Inimitability, and Organizational fit of strategic resources.
#6
In Porter's Five Forces framework, which force focuses on the bargaining power of buyers?
Bargaining Power of Buyers
ExplanationThe Bargaining Power of Buyers is a force in Porter's framework that assesses the influence customers have on pricing and terms.
#7
What does VRIO stand for in the context of strategic management?
Value, Rarity, Inimitability, Organization
ExplanationVRIO assesses strategic resources for their Value, Rarity, Inimitability, and fit with the Organization's capabilities.
#8
In the context of competitive advantage, what does the term 'cost leadership' refer to?
Being the lowest-cost producer in the industry
ExplanationCost Leadership involves becoming the industry's lowest-cost producer, gaining a competitive edge.
#9
Which factor is considered an internal component of the McKinsey 7S Framework?
Structure
ExplanationStructure is an internal component of the McKinsey 7S Framework, assessing organizational structure and design.
#10
In the context of strategic management, what does the acronym SMART stand for when setting objectives?
Specific, Measurable, Achievable, Relevant, Time-bound
ExplanationSMART objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound for effective strategic planning.
#11
Which framework is used to analyze the external macro-environmental factors that impact an organization?
PESTLE Analysis
ExplanationPESTLE Analysis examines Political, Economic, Social, Technological, Legal, and Environmental factors affecting an organization.
#12
Which strategic analysis tool is used to visualize a firm's portfolio of products or business units in a matrix format?
BCG Matrix
ExplanationThe BCG Matrix is a tool for portfolio analysis, categorizing products into areas like 'Stars,' 'Cash Cows,' 'Dogs,' and 'Question Marks.'
#13
What is the central idea behind the Blue Ocean Strategy?
Creating new market spaces with uncontested competition
ExplanationBlue Ocean Strategy focuses on creating new, uncontested market spaces rather than competing in existing markets.
#14
What is the primary goal of a diversification strategy in strategic management?
Expand into new markets or industries
ExplanationDiversification aims to expand into new markets or industries, reducing risk and increasing opportunities.
#15
According to Michael Porter, what is a key element of a successful differentiation strategy?
Unique and valued product features
ExplanationDifferentiation strategy relies on offering unique and valued product features to stand out in the market.
#16
What is the primary purpose of a corporate-level strategy?
Managing a portfolio of businesses to create value
ExplanationCorporate-level strategy involves managing a portfolio of businesses to optimize overall value creation.
#17
According to the Boston Consulting Group (BCG) Matrix, what does the term 'Stars' refer to?
High-growth, high-market-share products
ExplanationStars in the BCG Matrix represent high-growth, high-market-share products requiring significant investment.