Coverage of ABSP™ Exam
The questions appearing in TSI exams aim to check and validate candidates' awareness and knowledge of the general frameworks of Business Strategy. This includes key practices and trends in strategic thinking in addition to the design and execution of Business Strategy, critical issues, and challenges and opportunities in the discipline today. TSI exams, pursuant to the TSI Body of Knowledge, do not dwell on strategic management, instead focusing exclusively on Business Strategy. Candidates are expected to have knowledge of business fundamentals and the bare basics of strategic management for a faster and more in-depth learning of Business Strategy.
TSI exams feature questions drawn from a wide selection of Business Strategy areas defined by the TSI body of knowledge as essential for individuals intending to be certified by TSI. The framework and coverage of TSI exams is defined by The Business Strategy Handbook. Candidates will be tested on the following topics, which have been specifically assigned by TSI:
Knowledge Areas & Topics
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The Business Strategy Concept
5%
The Role of Strategy in Business Success; The Basic Framework for Strategy Analysis; The Business Strategy Building Process; Strategic Management of Not-For-Profit Organizations
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Goals, Values, and Performance
5%
Strategy as a Quest for Value; Putting Performance Analysis into Practice; Values and Corporate Social Responsibility; Strategy and Real Options
From Environmental Analysis to Industry Analysis; Analyzing Industry Attractiveness; Applying Industry Analysis to Forecasting Industry Profitability; Using Industry Analysis to Develop Strategy; Defining Industries; Identifying Key Factors Driving Competitive Success in Industries
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Competitive Analysis
7.5%
Extending the Five Forces Framework; Dynamic Competition: Hypercompetition, Game Theory, and Competitor Analysis; Segmentation and Strategic Groups
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Analyzing Resources & Capabilities
10%
The Role of Resources and Capabilities in Strategy Formulation; Identifying Resources and Capabilities; Appraising Resources and Capabilities; Developing Strategy Implications
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Organization Structure & Management Systems
5%
From Strategy to Execution; The Fundamentals of Organizing; Choosing the Right Organizational Structure
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Competitive Advantage
10%
How Competitive Advantage Is Established and Sustained; Types of Competitive Advantage: Cost and Differentiation; Cost Analysis; Differentiation Analysis; Implementing Cost and Differentiation Strategies
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Industry Evolution & Strategic Change
5%
The Industry Life Cycle; The Challenge of Organizational Adaptation and Strategic Change; Managing Strategic Change
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Technology Industries & Innovation
5%
Competitive Advantage in Technology-intensive Industries; Strategies to Exploit Innovation: How and When to Enter; Standards, Platforms, and Network Externalities; Platform-based Markets; Implementing Technology Strategies: Creating the Conditions for Innovation; Accessing External Sources of Innovation
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Competitive Advantage in Mature Industries
5%
Competitive Advantage in Mature Industries; Strategy Implementation in Mature Industries: Structure, Systems, and Style; Strategies for Declining Industries
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Vertical Integration & the Scope of the Firm
5%
Transaction Costs and the Scope of the Firm; The Benefits from Vertical Integration; The Costs of Vertical Integration; Applying the Criteria: Deciding Whether to Make or Buy; Designing Vertical Relationships; Different Types of Vertical Relationship; Choosing among Alternative Vertical Relationships
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Global Business Strategy
5%
Implications of International Competition for Industry Analysis; Analyzing Competitive Advantage in an International Context; Internationalization Decisions: Locating Production; Internationalization Decisions: Entering a Foreign Market; Multinational Strategies: Global Integration versus; National Differentiation; Implementing International Strategy: Organizing the Multinational Corporation
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Diversification Strategy
5%
Motives for Diversification; Competitive Advantage from Diversification; Diversification and Performance; The Meaning of Relatedness in Diversification
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Managing the Multibusiness Firm
5%
The Role of Corporate Management; Managing the Corporate Portfolio; Managing Linkages Across Businesses; Managing Individual Businesses; Managing Change in the Multibusiness Corporation; Governance of Multibusiness Corporations
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External Growth Strategies
5%
Mergers and Acquisitions; Strategic Alliances
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Trends in Business Strategy Management
5%
The New Environment of Business; New Directions in Strategic Thinking; Redesigning Organizations;The Changing Role of Managers
Business Strategy Cases of companies and industries including Tough Mudder; Starbucks Corporation; Kering; The US Legal Marijuana Industry; The US Airline Industry; Wal-Mart Stores; harley-Davidson; British Petroleum; AirAsia; Chipotle Mexican Grill; Ford; Eastman Kodak; Tesla Motors; Video Game Console Industry; New York Times; Eni SpA; American Apparel; Haier Group; The Virgin Group; Google & Alphabet; General Electric; Bank of America’s Acquisition of Merrill Lynch; W. L. Gore & Associates
Structure & Nature of a Typical ABSP™ Exam
A typical ABSP™ exam includes a mix of Type A and Type B questions for a total of 50 questions, though some exams may feature only one type of questions. Also, the number of questions may change without notice.
TYPE A - GENERAL UNDERSTANDING OF CONCEPTS
Questions directly test candidates' ability to correctly recollect concepts, principles, techniques, and generally accepted practices in contemporary Business Strategy. The answers to TYPE A questions will reflect candidates' awareness and comprehension of critical Business Strategy concepts and issues covered in the TSI body of knowledge. TYPE A Questions are fact-based, with the answer choices either being clearly correct or incorrect responses. There is only one correct answer to TYPE A questions, and candidates are scored only if the correct option is selected.
TYPE B - ABILITY TO APPLY UNDERSTANDING & KNOWLEDGE
Questions directly test candidates’ ability to apply and execute their understanding of the concepts and principles in the practice of Business Strategy. The answers to TYPE B questions will reflect candidates' capacities for critical analysis and judgement in gauging Business Strategy challenges. Questions will test examinees' abilities to devise strategic approaches, plans and programs to resolve challenges with accountability and a high degree of effectiveness. TYPE B questions have four answer choices and only one of these four will be incorrect. The other three answers will be correct, but will represent varying levels of suitability for the situation expressed. The best of these three correct answers will obtain 10 points, and the least suitable answer will obtain 5 points. The third correct answer with mid-level suitability will obtain 7.5 points. Candidates must choose only one of these four answer choices and are scored 0, 5, 7.5 or 10, depending on their answer choice.
The Objectives and Principles Underlying the Design of ABSP™ Exam
The TSI exam aims at validating candidates' potential to effectively perform an array of Business Strategy functions in complex organizations operating within a transnational system. The TSI exam system validates this potential by assessing candidates' knowledge about Business Strategy theory and practice and their ability to apply this knowledge effectively. These exams are designed on standards from the TSI Standardized Knowledge Architecture for Practice Excellence. The TSI Body of Knowledge has been engineered to redefine the profession of Business Strategy in the 21st century.
TSI exams test candidates on their knowledge of the principles, theories and generally accepted practices of Business Strategy as laid out in the TSI Body of Knowledge. These exams expect that individuals being assessed for their TSI certifications read the material contained in the TSI Resource Box and maintain familiarity with the latest in Business Strategy theory and practice by reading journals and books, listening to podcasts of experts and participating in professional development programs and events.
Certifying for the ABSP™ Exam
Usually, a cumulative score of 65%-70% on an ABSP™ exam can be deemed worthy of certification. However, an examinee's real, individual scores do not decide the recommendation for a certification award. Instead, a complex algorithm is used to make certification decisions which nullifies geographic and environmental factors with potential to skew performance. As such, the certifying benchmark should not be used as a specific number to determine passing or failing performance on the exam.
Preparing for the ABSP™ Exam
ABSP™ is for young professionals aspiring to break into the Business Strategy space. It is critical that all ABSP™ candidates focus on widening their perspective of Business Strategy. While the TSI ABSP™ Resource Box contains reading material and guidelines on how to study for the ABSP™ exam, additional research should be done to properly prepare for the exam. Business Strategy is an evolving discipline and will perhaps never become an exact science, which makes containing the entire practice into a single textbook impossible. TSI has evolved its knowledge model in what is the world’s largest project on defining knowledge essentials for excellence in Business Strategy. As a program in Business Strategy, TSI has covered the extensive breadth of Business Strategy to assure that the ABSP™ program makes an impact on the professional capabilities of certification holders.
While ABSP™ candidates are advised to use The TSI Handbook on Business Strategy as their main reference while preparing for their exams, it is just one piece in preparation for the ABSP™ examination. Although a sizable number of questions in a typical ABSP™ exam are drawn from content which is available in the Handbook, the rest of the questions are drawn from content from other sources. TSI therefore strongly advises all examinees to research other online and offline resources to increase their knowledge of concepts and awareness about how Business Strategy impacts business.
To ensure that all ABSP™ candidates develop into the best young international professionals, TSI advises they read extensively on the subject from as many sources as possible. For external resources candidates can use to better prepare for your ABSP™ examination, please refer to the TSI Exam Preparation Guidelines available for download under the TSI resources tab of your account.