CIMA Exam CIMAPRA19-E02-1 Topic 5 Question 48 Discussion

Actual exam question for CIMA's CIMAPRA19-E02-1 exam

Question #: 48
Topic #: 5

Drawbacks of the formal top-downapproach to strategyinclude which THREE of the following?

AIt is too infrequent, typically every three to five years, to allow the business to adapt to changes in the business environment.

BEven when a firm is involved in a range of industries and has a unique core competence, there is no guarantee of competitive advantage against more focused players.

CThe approach assumes that the strategist is able to make reliable assumptions about the future but as critics point out, this is not always possible.

DOrganisations need to be continuously monitoring their marketplace to ensure that their core competences are still providing a competitive advantage.

EThe formality of the approach constrains the development of radical innovative strategies.

Show Suggested Answer

Suggested Answer: A, C, E

by Cordelia at May 03, 2022, 06:22 PM

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