IMA CSCA Certified in Strategy and Competitive Analysis

In a SWOT analysis, which of the following would be classified as an internal factor?

• AA new tariff imposed on imported components
• BProprietary manufacturing technology owned by the firm
• CA competitor announcing a major product launch
• DRising consumer demand for sustainable products

According to Porter's Five Forces, which force is most directly intensified when buyers can easily switch between suppliers with little cost?

• AThreat of new entrants
• BBargaining power of buyers
• CThreat of substitutes
• DRivalry among existing competitors

In Porter's value chain, which of the following is classified as a primary activity rather than a support activity?

• AProcurement
• BHuman resource management
• COutbound logistics
• DTechnology development

A business unit holds a small relative market share in a high-growth industry. According to the BCG growth-share matrix, this unit is classified as which of the following?

• AStar
• BCash Cow
• CQuestion Mark
• DDog

PESTEL analysis is most useful for assessing which type of factors influencing strategy?

• AInternal resource capabilities
• BMacro-environmental external factors
• CCompetitive rivalry within an industry
• DCustomer segmentation patterns

The GE/McKinsey nine-cell matrix evaluates business units on which two dimensions?

• AMarket growth rate and relative market share
• BIndustry attractiveness and business unit competitive strength
• CProduct life cycle stage and profitability
• DCost position and differentiation level

Under the VRIO framework, a resource provides a sustained competitive advantage only when it is valuable, rare, costly to imitate, and the firm is:

• AVertically integrated
• BOperating in a regulated industry
• COrganized to capture the resource's value
• DListed on a major stock exchange

In Porter's Five Forces analysis, high capital requirements, strong economies of scale, and proprietary technology primarily affect which force?

• ABargaining power of suppliers
• BThreat of new entrants
• CThreat of substitutes
• DIndustry rivalry

A firm conducts an analysis of its supply network and identifies that a single overseas supplier provides a critical, hard-to-substitute component. This finding should be flagged as which of the following in a SWOT?

• AOpportunity
• BStrength
• CWeakness
• DThreat

Which of the following best describes a 'Cash Cow' in the BCG matrix?

• ALow market share in a high-growth market
• BHigh market share in a low-growth market
• CHigh market share in a high-growth market
• DLow market share in a low-growth market

An incumbent industrial gas producer has long-term contracts with all major customers, requires regional pipeline infrastructure, and benefits from steep learning-curve cost advantages. Using Porter's framework, the most accurate assessment of this industry's structural attractiveness for new entrants is:

• AHighly attractive due to inelastic demand
• BUnattractive due to multiple high entry barriers
• CAttractive only to firms with low cost of capital
• DNeutral, since switching costs offset entry barriers

Which value chain support activity covers the firm's planning, finance, accounting, legal, and quality management functions?

• AProcurement
• BTechnology development
• CHuman resource management
• DFirm infrastructure

Which of the following is NOT one of Porter's Five Forces?

• AThreat of new entrants
• BGovernment regulation
• CBargaining power of suppliers
• DThreat of substitute products

Under the resource-based view, which of the following resources is most likely to provide a sustained competitive advantage?

• AA widely available enterprise software package
• BA patent-protected drug compound with no close substitutes
• CA favorable currency exchange rate
• DA standard industry certification held by all competitors

An industry has many small competitors, low product differentiation, slow growth, and high fixed costs. Porter's framework predicts that rivalry in this industry will be:

• AWeak, because firms can easily exit
• BWeak, due to product variety
• CIntense, leading to price competition
• DModerate, due to high industry growth

Which of the following is the best example of a substitute product (rather than a direct competitor) for a domestic airline's economy class service?

• AA different airline's economy class fare
• BIntercity high-speed rail service
• CA first-class fare on the same airline
• DA code-share partner's economy fare

In a value chain analysis, an activity is considered to add value when:

• AIt increases the firm's headcount
• BCustomers are willing to pay more because of it
• CIt complies with internal policy requirements
• DIt reduces the number of management layers

A retail conglomerate is mapping its portfolio with the BCG matrix. A division has very high relative market share in a market that has stopped growing and is approaching maturity. Best strategic recommendation:

• ADivest immediately to free capital
• BHarvest cash flows and reinvest selectively elsewhere
• CAggressively reinvest to capture share growth
• DDiversify into unrelated industries

Which of the following statements about the GE/McKinsey matrix is most accurate compared to the BCG matrix?

• AIt uses a single quantitative measure on each axis
• BIt assumes all business units have equal cost of capital
• CIt uses multiple weighted factors to score each axis
• DIt applies only to consumer products firms

Suppliers in an industry have strong bargaining power when:

• AMany suppliers compete for buyers' business
• BThe supplier industry is concentrated and inputs are differentiated
• CBuyers can easily backward-integrate
• DSupplier products are commodities

Which acronym in PESTEL captures the influence of demographic shifts and changing consumer values on strategy?

• AP (Political)
• BS (Social)
• CT (Technological)
• DL (Legal)

A strategist evaluates a resource using VRIO and concludes it is valuable and rare but easy to imitate. According to Barney's framework, this resource provides:

• ASustained competitive advantage
• BA temporary competitive advantage
• CCompetitive parity
• DCompetitive disadvantage

Which of the following is the main limitation of the original SWOT framework when used for strategy formulation?

• AIt uses too many quantitative inputs
• BIt does not prioritize or weight items, so all factors appear equally important
• CIt is only valid for service firms
• DIt requires a five-year forecast horizon

When industry growth slows from 12% per year to 2% per year, Porter's framework predicts which of the following changes in competitive dynamics?

• ARivalry decreases as firms focus on existing customers
• BRivalry intensifies as firms fight for share
• CBuyer power decreases due to scarcity
• DThreat of new entrants rises sharply

An analyst identifies that machine learning models can now extract competitor pricing in near real time across global e-commerce sites. In a PESTEL analysis, this finding fits primarily under:

• APolitical
• BEconomic
• CTechnological
• DEnvironmental

Porter's three generic strategies are cost leadership, differentiation, and:

• ADiversification
• BFocus
• CVertical integration
• DMarket penetration

In the Ansoff matrix, selling existing products to new geographic markets is called:

• AMarket penetration
• BProduct development
• CMarket development
• DDiversification

Blue Ocean Strategy emphasizes which of the following?

• ABeating competitors on cost in saturated markets
• BCreating uncontested market space through value innovation
• CMaximizing market share within the existing industry
• DFollowing the leader's strategy with minor adaptations

A specialty coffee retailer charges premium prices, builds a strong brand, and invests heavily in store ambience and barista training. Which of Porter's generic strategies is this firm pursuing?

• ACost leadership
• BDifferentiation
• CCost focus
• DDifferentiation focus

Porter warned that firms attempting both cost leadership and differentiation across the entire market simultaneously risk what outcome?

• ABecoming the dominant industry leader
• BAchieving sustained competitive advantage
• CBecoming 'stuck in the middle' with no clear advantage
• DMaximizing both market share and margins

A consumer electronics firm launches a new line of smart wearables for its existing customer base. In Ansoff's matrix, this is:

• AMarket penetration
• BProduct development
• CMarket development
• DConglomerate diversification

In Blue Ocean Strategy, the 'Four Actions Framework' instructs strategists to ask which set of questions about industry factors?

• ABuy, sell, hold, divest
• BEliminate, reduce, raise, create
• CPlan, do, check, act
• DStrengths, weaknesses, opportunities, threats

A regional bakery decides to serve only gluten-free products and target customers with celiac disease through a small chain of specialty stores. This is best described as:

• ABroad differentiation
• BCost leadership
• CDifferentiation focus
• DMarket penetration

Which Ansoff strategy is generally considered the highest risk?

• AMarket penetration
• BProduct development
• CMarket development
• DDiversification

A discount airline standardizes its fleet to a single aircraft model, eliminates seat assignments and meal service, uses secondary airports, and turns aircraft around in 25 minutes. This combination most clearly illustrates:

• ADifferentiation strategy
• BCost leadership through aligned activities
• CDiversification across markets
• DCost focus on a narrow segment

Which of the following is a key insight of Blue Ocean Strategy that distinguishes it from Porter's generic strategies?

• AFirms must choose between cost or differentiation, not both
• BValue innovation pursues differentiation and low cost simultaneously
• CMarket structure is fixed and firms must adapt
• DDiversification across unrelated industries reduces risk

A mature beverage firm sees declining demand in soda and considers entering bottled water, sports drinks, snacks, and fitness apps. Using Ansoff's matrix, the snacks and fitness apps moves are:

• AMarket penetration
• BMarket development
• CRelated product development
• DDiversification

An incumbent media company adopts a cost-leadership strategy, but a new entrant uses cloud infrastructure and AI-driven content production to undercut its prices by 40%. The incumbent's most likely strategic response error would be:

• AMigrating to a value-innovation/blue-ocean position
• BDoubling its CapEx to defend cost leadership without changing its operating model
• CRepositioning to differentiation focus on premium investigative journalism
• DPartnering with the entrant to share distribution

A regional grocery chain runs a loyalty program offering steeper discounts to existing members to drive more weekly shopping trips. In Ansoff terms, this is:

• AMarket penetration
• BProduct development
• CMarket development
• DDiversification

In Blue Ocean Strategy, a 'strategy canvas' is used to:

• ACalculate cost of capital for new ventures
• BVisually compare competing offerings on key value factors
• CAudit internal control deficiencies
• DAllocate corporate overhead to business units

Cost leadership is most sustainable when it is supported by:

• AA single low-cost activity that competitors can quickly replicate
• BA system of mutually reinforcing activities and operational fit
• CAggressive short-term price cutting only
• DCentralized procurement alone

A focus strategy is most attractive when:

• AIndustry segments have similar needs and costs to serve
• BA segment has distinctive needs that are underserved by broad-line competitors
• CAll buyers are highly price-sensitive
• DThere are no economies of scale

An organizational structure in which employees report to both a functional manager and a project or product manager is best described as:

• AFunctional structure
• BDivisional structure
• CMatrix structure
• DNetwork structure

Kaplan and Norton's Balanced Scorecard includes which of the following four perspectives?

• AFinancial, Customer, Internal Process, Learning & Growth
• BOperations, Marketing, Finance, HR
• CStrategy, Tactics, Operations, Compliance
• DPast, Present, Future, External

In Kotter's 8-Step Change Model, which step typically comes FIRST?

• ACreate a guiding coalition
• BEstablish a sense of urgency
• CCommunicate the change vision
• DAnchor new approaches in the culture

ADKAR is a change management model focused on:

• AOrganizational structure design
• BIndividual transitions through change
• CRisk-adjusted capital budgeting
• DProject portfolio prioritization

Strategy maps, as developed by Kaplan and Norton, primarily serve to:

• AReplace traditional financial statements
• BVisualize cause-and-effect relationships among Balanced Scorecard objectives
• CCalculate weighted average cost of capital
• DDocument IT system architecture