Strategy Quiz- CSCA (Certified in Strategy & Competitive Analysis) - All Sections

Strategy determines

The direction and scope of an organization over the long term

How resources should be configured to meet the needs of markets and stakeholders

Organizational resources, skills, and competencies should be combined to create competitive advantage

All Options

A corporate strategy establishes the big picture. Each business unit within the organization then has a business unit strategy, which its leaders use to determine how they will compete in their individual markets.

True

False

Individual teams should not have its own strategy tied to day-to-day activities help move the organization in the right direction.

True

False

Each competitive geography requires an individual corporate strategy.

True

False

At the corporate level, which are not examples of how can strategy be supported?

Sharing technologies and resources between business units

Raising capital cost-effectively

Developing and nurturing a strong corporate brand

Developing a new product

Identify new customers

What type of strategy would be described by the following approach? Good research, development and innovation. The ability to deliver high-quality products or services. Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

Differentiation

Focus

Cost Leadership

Generic

Strategy at the ____________ level is concerned with competing successfully in individual markets, and it addresses the question, "How do we win in this market?" However, this strategy needs to be linked to the objectives identified in the corporate level strategy.

Business unit

Funtional

Board

Executive

For smaller businesses, corporate and business unit strategy may overlap or be the same thing. However, if an organization is competing in different markets, then each business unit needs to think about its own strategic direction.

True

False

Mission, vision and values help people working within each unit should be able to draw direct links between this strategy and the work that they're doing.

True

False

Fit and Operational Excellence are the same concept.

True

False

Apple, Harley-Davidson, Nespresso, LEGO, Nike and Starbucks follow which strategy?

Differentiation

Cost Leadership

Focus

Southwest Airlines, Wal-Mart, McDonald’s, EasyJet, Costco and Amazon follow which strataegy?

Differentiation

Cost Leadership

Focus

Rolls Royce, Omega, Prada and Razer follow which strategy?

Differentiation focus

Cost focus

Cost Leadership

Differentiation

Claire’s, Home Depot and Smart follow which strategy?

Differentiation focus

Cost focus

Cost Leadership

Differentiation

The picture depicts what aspect of strategy for Ikea?

Fit

Strategic goals

Strategy-execution

Alignment

The picture depicts what aspect of strategy?

Operational excellence

Fit

Tactics

Value Chain

In most cases, operational effectivenss can overcome a weak strategy.

True

False

Which is not a key aspect of strategy?

Uniqueness

Making trade-offs

Fit across the value chain

Synergy

Organizations must strive to be the best.

True

False

The fundamental goal of a company is

Superior long-term return on invested capital (ROIC)

A record high stock price

Employee engagement

Profitability

Business-level strategy defines what set of businesses to compete in, while business unit strategy describes how to compete in each distinct business or industry.

True

False

Which statement is false?

In diversified companies, corporate leaders can enhance competitive advantage by capturing synergies across business units within the corporate portfolio.

Competitive advantage is won or lost at the business unit level. To achieve competitive advantage, companies must position themselves strategically within their industries.

The terms “business unit strategy,” “business strategy” and “competitive strategy” are often used interchangeably in Porter's work.

The fundamental goal of a company is superior short-term return on invested capital (ROIC)

The GE McKinsey Matrix is a good alternative for the BCG Matrix and has the advantage that the two variables used consist of multiple factors combined.

True

False

Which level of strategy is indicated by the grey squares?

Functional-level strategy

Corporate-level strategy

Business-level strategy

Board-level strategy

The VRIO framework leads to

Sustained competitive advantage

Higher short-term profitability

Synergies

Executive bonuses

Even without the correct organization to acquire, use and monitor the resources involved, companies with valuable, rare and imperfectly imitable resources will be able to create a sustainable competitive advantage.

True

False

Both internal and external factors will have to be taken into account of course to improve a company’s chances for success.

True

False

The number of customers,size of each customer order, differences between competitors, price sensitivity, buyer's ability to substitute, buyer's information availability, and switching costs influence which factor?

Rivalry among existing competitors

Threat of new entrants (potential competitors)

Threat of substitute products (alternatives)

Bargaining power of suppliers

Bargaining power of buyers

Alliance Tech System / Gify

What does the following statement describe? Company A and Company B combine their respective resources, capabilities, and core competencies to generate mutual interests in designing, manufacturing, or distributing goods or services.

Strategic competition

Strategic alliances

Synergies

Corporate dissodance

Which option is false? Strategic alliances create value by

Improving current operations

Changing the competitive environment

Ease of entry and exit

Borrowing ideas from peer R&D

How do strategic alliances not improve operations?

Economies of scale from successful strategic alliances

The ability to learn from the other partner(s)

Risk and cost being shared between partner(s)

Lower accountability leads to lower risk

Strategic alliances may face which challenge(s)

Partners may misrepresent what they bring to the table (lie about competencies that they do not have).

Partners may fail to commit resources and capabilities to the other partners.

One partner may commit heavily to the alliance while the other partner does not.

Partners may fail to use their complementary resources effectively.

All choices are correct

To maximize the value of the entire firm, leaders must determine how to allocate these resources to the various businesses or business units to make the whole greater than the sum of the parts. Key factors related to the allocation of resources are:

Identifying core competencies and ensuring they are well distributed across the firm

Moving leaders to the places they are needed most and add the most value (changes over time, based on priorities)

Ensuring an appropriate supply of talent is available to all businesses

Allocating capital across businesses so it earns the highest risk-adjusted return

Analyzing external opportunities (mergers and acquisitions) and allocating capital between internal (projects) and external opportunities

Determining how much autonomy to give business units

Determining the extent of vertical integration the firm should have

Portfolio management looks at the way business units complement each other, their correlations, and decides where the firm will “play” (i.e. What businesses it will or won’t enter). Corporate Strategy related to portfolio management includes:

Deciding what business to be in or to be out of

Determining the extent of vertical integration the firm should have

Managing risk through diversification and reducing the correlation of results across businesses

Creating strategic options by seeding new opportunities that could be heavily invested in if appropriate

Monitoring the competitive landscape and ensuring the portfolio is well balanced relative to trends in the market

Developing centers of excellence

Setting governance structures

Barriers to international trade,Changes in government regulation, Tax policy, Employment laws, Country-specific political risk relate to _________?

Political Factors

Economic Factors

Socio-Demographic (Social) Factors

Technological Factors

Research & development (R&D) investment, Scientific advances, emerging technologies, Diffusion of technologies relate to __________ ?

Political Factors

Economic Factors

Socio-Demographic (Social) Factors

Technological Factors

Gify

The concept of balanced scorecard is popular because of the simple use of perspectives.

True

False

The BSC suggests that we examine an organization from four different perspectives to help develop objectives, measures (KPIs), targets, and initiatives relative to those views.

	Financial (or Stewardship):
	Financial (or Stewardship):	Customer/Stakeholder:	Internal Process:	Organizational Capacity (or Learning & Growth):
Views an organization’s financial performance and the use of financial resources
Views organizational performance from the perspective of the customer or key stakeholders the organization is designed to serve
Views the quality and efficiency of an organization’s performance related to the product, services, or other key business processes
Views human capital, infrastructure, technology, culture, and other capacities that are key to breakthrough performance

____________ strategy focuses the entire organization on strategy and creating line-of-sight between the work people do and high level desired results

Cascading

Business

Synergistic

Profit

Fantasy Life App / Gify

The ________ is a strategic planning and management system. Organizations use ________ to:

Communicate what they are trying to accomplish
Align the day-to-day work that everyone is doing with strategy
Prioritize projects, products, and services
Measure and monitor progress towards strategic targets

Balanced Scorecard

Business Stock Conference

Business KPI Index

Business Scorecard

A plan of action used by an organization is called

Strategy

Management

Report

Summary

CBC / Gify

Strategic alliances allow a company to rapidly extend its strategic advantage and generally require less commitment than other forms of expansion. A key motivator is sharing resources or activities, although there may be less obvious reasons as well. There are four types of alliance: scale, access, complementary, and collusive.

	Scale alliances	Access alliances	Complementary alliances	Collusive alliances
Involve companies combining to achieve necessary scale. The capabilities of each partner may be quite similar, but together they can achieve advantages that they could not easily achieve on their own. Thus, combining together can provide economies of scale in the production of outputs (products or services). Combining might also provide economies of scale in terms of inputs—for example by reducing purchasing costs of raw materials or services.
Involve a company allying in order to access the capabilities of another company that are required to produce or sell its own products and services. For example, in countries such as Mexico a Western company might need to partner with a local distributor to access effectively the national market for its products and services. The local company is critical to the international company’s ability to sell. Access alliances can also work in the opposite direction, with a local company seeking a licensing alliance to access inputs from an international company—for example technologies or brands.
Involve companies at similar points in the value network combining their distinctive but complementary resources so that each partner is bolstered where it has particular gaps or weaknesses. The Renault-Nissan Alliance is a great example of two companies combining their strenghts to overcome their individual weaknesses.
Involve companies colluding secretly to increase their market power. By combining into cartels, they reduce competition in the marketplace, enabling them to extract higher prices from customers or lower prices from suppliers. Such collusive cartels among for-profit businesses are discouraged by regulators. For instance, mobile phone and energy companies are often accused of collusive behavior.

Strategy involves creating a

Model

Approach

Both

None

Objectives are the_____________ milestones?

Measurable

Qualitative

Quantifiable

All

Objectives make strategy

Actionable

Clear

Complex

Powerful

Paramount+ / Gify

Objectives are established before

Plans

Initiatives

Strategy

Goals

_____________ are generally stated long-term aims?

Objectives

Purpose

Goals

All

The strategic plan is comprised of _________goals and objectives?

Short-term

Long-term

Permanent

Temporary

The ongoing sustainability of the organization, however, requires it to focus on _____________long-term goals?

Financial

Non-financial

Both

None

The strategic management and strategic planning process generate

Recommendations

Profits

Unncessary work

Referals

Nonprofit organizations compete for

Profit

Fame

Member Subscriptions

Owner Benefits

Effective implementation of a plan involves _________________support?

Leadership

Business

Consultant

Middle management

The challenge of developing or reestablishing a clear strategy is often primarily an organizational one and depends on ___________________?

Goals

Aims

Leadership

Competitors

The purpose of ___________ is to exploit and create new and different opportunities for the future?

Strategic Goals

Strategic Implementations

Strategic Management

Strategic Planning

Strategic planning can be thought of as the _______________?

Scientific Plan

Game Plan

Business Plan

Management Plan

Strategies are usually for a time span of ______________?

2 to 3 years

3 to 5 years

4 to 5 years

1 to 2 years

Strategic implementation is a term used to describe the ___________ within an organization?

Activities

Methods

Techniques

Rules

During the implementation process, a trusted, visible leader such as the __________will communicate the organization’s vision with passion?

HOD

CEO

CFO

COO

Sharing the plan of action is also known as a ____________________?

Strategy Plan

Strategy Map

Strategy Action

Strategy Protocol

Strategic plans are subject to future modifications because ______________factors are constantly changing?

Strategic ______________is a process for assessing an organization’s programs, projects, and activities.

Evaluation

Implementatio

Assumption

Planning

CSF stands for________________?

Complex Success Factors

Complete Success Factors

Critical Success Factors

Clear Success Factors

KPI means____________________?

Key Performance Identifier

Key Power Indicators

Kaleen Performance Indicators

Key Performance Indicators

Once a strategy has been implemented, its ________must be managed?

Implementation

Execution

Employees

Consultants

Large vs. Small companies also differ in their approach to ___________?

Strategic Mapping

Strategy Protocols

Strategic Planning

Strategic Methods

Domestic companies can typically have _______predominant strategic plan/plans?

4 or more

The focus of growth plans of domestic companies is to create new ____________?

Clients

Customers

Markets

Business

Nearly _______ of financial professionals work in business as management accountants?

60%

65%

70%

75%

Change the mind-set on your____________, and cultivate the right behaviors.

Team

Customer

CEO

Manager

Nearly ____________of controllers believe that the finance function adds a great deal of value to the organization?

70%

75%

80%

85%

Management accountants are increasingly being asked to provide ___________data?

Operational

Management

Statistical

Economical

To perform an external analysis, an organization must examine its _______________?

Worth

Branding

Competition

Plan

___________analysis, is used to assess the macro environmental factors?

STEEP

STEP

PTEES

TSEEP

STEEP analysis tool has evolved into a more commonly used tool known as _____________analysis.

TESTEP

ESPTES

PESTEL

LETEP

The components of STEEP analysis include ___________ forces?

Sociocultural

Technological

Economic

All

Global warming and climate change, weather, and changes in temperature are___________ factors?

Political

Technological

Ecological

Economic

Changes in the _________environment normally require a firm to reassess the industry?

Macro

Micro

Global

Domestic

Every company should already know what the average ______________of its industry is and how that has been changing over time?

Profitability

Growth

Brand VRIO

Compensation

Porter's ___________forces reveal why industry profitability is what it is?

The stronger the ____________________is, the more competition there is in the industry?

Threat Of Entry

Profitability

Growth

Economy

_________________create demand in the industry?

Buyers

Sellers

Marketing Efforts

Value chains

Bargaining power gives ____________________the ability to influence the price of goods or services?

CEOs

Buyers

Suppliers

Managers

_______________products are the products of different companies that can satisfy similar customer needs?

Substitute

Disposable

Incongruous

Redundant

When substitute products are very similar to one another, companies may be forced to charge __________________prices?

Higher

Lower

Flat

All options

The __________________among established companies is a function of an industry’s competitive structure?

Intensity Of Reason

Intensity Of Competitors

Increment of Rivalry

Intensity Of Rivalry

_______________demand conditions moderate the competition among established companies and create opportunities for expansion?

Strong

Weak

Average

Changing

When demand is________________ intensive competition can develop?

Strong

Weak

Average

All

Rivalry affects the tactical actions of competing firms by driving down ______________?

Margins

Profits

Both

None

There are also competition-related issues that impact an organization and its strategy. Some of the most important include:

Industry life cycle

Industry competitive structure

Segmentation

All

Members of a company’s strategic group constitute its __________________?

Business Team

Immediate Competitors

Executive Board

Compensation Commitee

____________competition structure consists of many sellers producing identical products?

Internal

External

Pure

All

__________competition structure involves many companies selling products that are similar but not perfect substitutes

Monopolistic

Internal

External

Pure

An oligopoly structure is one where a _____________number of sellers control the entire industry but function independently of each other?

Large

Small

Average

Constant

A Single firm produces a product or a service that has no close substitutes is called__________?

Monopoly

Pure Monopoly

Proprietorship

Pure Proprietorship

________________is defined as the process of subdividing a market into clearly identifiable groups of customers with similar needs, desires, and demand characteristics

Segmentation

Classification

Filtration

Partitioning

Identifying the industry the organization is in and who its competitors are, is called_____________?

Competitor Classification

Competitor Segmentation

Competitor Identification

Competitor Industry

____________is a industry where no single enterprise has large enough market share to be able to influence the industry’s direction?

Fragmented industry

Rich Industry

Independent Industry

Dependent Industry

Factors that lead to a fragmented industry include

Low Market Share

Low Economies Of Scale

Local Brand

All

The primary activity of competitive intelligence is to monitor _________________?

Customers

Rivals

Start-ups

Market conditions

The collection of data points that one can use to understand something is called_______________?

Data Analysi

Information

Reporting

Variance Analysis

All intelligence information must be ______________because using data from unreliable sources can lead to ethics issues?

Checked

Evaluated

Implemented

Validated

The uncertainties and untapped opportunities embedded in your strategy are ________________?

Strategic Risks

Management Risks

Implementation Risks

Business Risks

Market introduction phase is known as__________________?

The Growth phase

The Shakeout phase

The Mature phase

The Embryonic phase

A time of rapid increase in demand is known as______________?

The Growth phase

The Shakeout phase

The Mature phase

The Embryonic phase

_________________is when demand approaches saturation levels ?

The Growth phase

The Shakeout phase

The Mature phase

The Embryonic phase

The process of looking inward at the resources, capabilities, and competencies in order to recognize an organization’s strengths and weaknesses is called_________________?

Internal Analysis

External Analysis

Business Analysis

Market Analysis

_____________are essential internal activities that organizations have mastered ?

Pure competencies

Core competencies

Business competencies

All

Set of activities that an organization can carry out to identify efficiencies to create value for its customers is known as________________?

Value Chain

Customer Chain

Business Chain

Activity Chain

____________include the processes related to receiving and distributing?

Inbound logistics

Outbound logistics

Activity Logistics

Customer Logistics

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