An organization provides services to businesses and private customers, it is now reviewing. its strategy and needs to ensure that the strategy sufficiently addresses the external perspective. Which…

Question

Options

• AHow can we reduce costs?
• BHow can we improve operational efficiencies?
• CHow do we get to where we want to be?
• DWhat markets do we serve?

• A
  12% (7)
• B
  3% (2)
• C
  5% (3)
• D
  80% (48)

Explanation

Option D is correct because "What markets do we serve?" directly addresses the external perspective of strategy - it focuses on the outside environment, specifically the customers and market segments the organization engages with. Since the organization serves both businesses and private customers, identifying which markets to target is a classically outward-facing strategic question.

Why the distractors are wrong:

• A (reduce costs) and B (improve operational efficiencies) both focus on the internal perspective - they concern how the organization operates, not how it relates to the outside world.
• C (how do we get to where we want to be?) addresses strategic direction and execution - it's about the journey, not the external landscape. It's an important strategic question, but not specifically an external one.

Memory tip: Think External = Everyone outside the organization. Costs and efficiency live inside the building; markets and customers live outside it. If the question mentions "external perspective," look for the answer that points outward toward customers, markets, or competitors.

No community discussion yet for this question.