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IMANET CMA Exam - Topic 6 Question 3 Discussion

Actual exam question for IMANET's CMA exam
Question #: 3
Topic #: 6
[All CMA Questions]

What is the key strategic issues when a firm is considering capacity expansion?

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Suggested Answer: D

Whether to expand capacity is a major strategic decision because of the capital required, the difficulty of forming accurate expectations, and the long time frame of the lead times and the commitment. The key forecasting problems are long-term demand and behavior of competitors. The key strategic issue is avoidance of industry overcapacity. Undercapacity in a portable industry trends to be a short-term issue. Profits ordinarily lure additional investors. Overcapacity trends to be a long-term problem because firms are more likely to compete intensely rather than reverse their expansion


by Franklyn at May 07, 2022, 10:52 AM

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Roxanne
4 months ago
Yeah, but how do you even forecast demand accurately?
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Frankie
5 months ago
Avoiding industry overcapacity? Really? Is that a big deal?
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Willis
5 months ago
Identifying options can make or break the expansion plan.
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Brendan
5 months ago
Totally agree, but competitor analysis is just as important.
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Melissa
5 months ago
Forecasting long-term demand is crucial!
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Shalon
5 months ago
Analyzing competitors might be important too, but I feel like it’s more about understanding demand first.
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Adria
5 months ago
Avoiding industry overcapacity seems like a big deal, especially after what we discussed in class about market saturation.
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Allene
5 months ago
I remember a practice question that emphasized identifying options for expansion, but I can't recall if that was the most important factor.
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Lonna
5 months ago
I think forecasting long-term demand is really crucial, but I'm not entirely sure how to balance that with competitor analysis.
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Willard
5 months ago
Okay, I've got this. The two steps I would take are enabling DMARC and creating an incoming content filter with SPF detection. That should help ensure the executive emails are coming from legitimate sources.
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Tran
6 months ago
I think the key here is to find where Salesforce provides the code coverage information for a specific class. Option C looks like the most direct way to view the code coverage percentage.
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