Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary goal of a business strategy?

1. To reduce operational costs

2. To grow competitive edge

3. To minimize employee turnover

4. To expand product lines

The correct answer is: To grow competitive edge

The primary goal of a business strategy is to grow competitive edge. A well-defined business strategy focuses on how an organization can position itself in the marketplace to differentiate itself from its competitors, taking into account the capabilities, competencies, and resources available to it. This involves identifying unique value propositions, understanding customer needs, and determining how to deliver superior products or services compared to competitors. By establishing a competitive edge, a business can achieve sustainable growth, increase its market share, and ultimately enhance profitability and long-term success. While reducing operational costs, minimizing employee turnover, and expanding product lines can be important aspects of a business's tactical decisions, they typically serve as means to support the overarching aim of developing and maintaining a competitive advantage in the market.