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840-450 · Question #14

Which two real world examples for an external business influence are true? (Choose two.)

The correct answer is D. The CMO has indicated they should develop new business capabilities for their Business Delivery E. A bricks and mortar retailer is introducing their online retail capability to compete with online rivals. Options D and E are correct because they both describe influences that originate outside the organization's internal operations and drive strategic business response. In D, the CMO is responding to external market demands by directing the development of new business…

Business Alignment

Question

Which two real world examples for an external business influence are true? (Choose two.)

Options

  • AA bank has decided to invest in a new business solution for retail banking.
  • BA state health department has mandated the use of closed-loop medication administration to all
  • CA manufacturer is streamlining current manual processes in the warehouse for automation
  • DThe CMO has indicated they should develop new business capabilities for their Business Delivery
  • EA bricks and mortar retailer is introducing their online retail capability to compete with online rivals.

How the community answered

(27 responses)
  • A
    7% (2)
  • B
    7% (2)
  • C
    4% (1)
  • D
    81% (22)

Explanation

Options D and E are correct because they both describe influences that originate outside the organization's internal operations and drive strategic business response. In D, the CMO is responding to external market demands by directing the development of new business capabilities - the pressure to change comes from the competitive landscape, not internal operations. In E, a brick-and-mortar retailer is being compelled to build online capability specifically because of external competitive pressure from online rivals - a textbook external business influence.

Why the distractors are wrong:

  • A is an internal strategic investment decision made by the bank itself - the driver is internal leadership, not an outside force.
  • B is a regulatory/compliance influence (a government mandate), which is a distinct category from a business influence, even though the source is external.
  • C is an internal operational initiative - the manufacturer is choosing to automate its own processes, with no external driver mentioned.

Memory tip: Ask yourself "Is the organization being pushed by something it doesn't control?" External business influences are reactions to outside forces (competition, market shifts, customer demands). If the decision is self-initiated for internal efficiency (A, C) or is regulatory in nature (B), it's not an external business influence.

Topics

#External Business Drivers#Stakeholder Influence#Market Competition#Business Capability Development

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