A service provider has documented their purpose and how they will achieve it. Which term is used to described this?

Question

Options

• ABusiness strategy
• BDigital organization
• CProduct and service portfolio
• DDigital transformation

• A
  74% (37)
• B
  16% (8)
• C
  6% (3)
• D
  4% (2)

Explanation

Business strategy is the term that describes a documented statement of an organization's purpose (its "why") and the approach it will take to achieve that purpose (its "how"). This is a foundational concept in service management - when an organization formally records both its mission and its plan for fulfilling it, that combined document is its business strategy.

Why the distractors are wrong:

• B. Digital organization describes a type of organization that operates primarily through digital means - it's a structural concept, not a planning document.
• C. Product and service portfolio refers to the complete catalog of products/services an organization offers - it describes what is offered, not why the organization exists or how it will succeed.
• D. Digital transformation refers to the process of adopting digital technologies to change how an organization operates - it's a journey or initiative, not a purpose statement.

Memory tip: Break "business strategy" into two halves - business = the organization's purpose/identity, strategy = the plan to get there. Whenever an exam question pairs "purpose" with "how to achieve it" in a documented form, that's your signal to choose business strategy.

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