MBA 620 Strategic Management Comprehensive Final Exam
Questions and Detailed Solutions Latest Update 2026/2027 |
Southern New Hampshire University | Downloadable PDF - 200
Questions
This comprehensive final exam assesses mastery of strategic management concepts including industry analysis,
competitive strategy, internal resource analysis, corporate strategy, global strategy, innovation, governance, and
strategic change. It requires synthesis and application of theories to complex business scenarios, emphasizing
analytical rigor and strategic decision-making. It contains 200 multiple-choice questions, each with four
distractors and a fully worked rationale that explains why the keyed answer is correct. Questions are organized
into clearly labelled sections that mirror the major content areas of the course. Targeted learning outcomes
include: Analyze industry structures and competitive forces to identify strategic opportunities and threats.;
Evaluate firm resources and capabilities to determine sources of sustainable competitive advantage.; Formulate
and assess business-level and corporate-level strategies across domestic and global contexts.; Critically evaluate
strategic leadership, governance, and change management processes.. Every item has been reviewed for clinical
accuracy, current guidelines, and clarity so that students can study with confidence and self-correct as they work
through the bank. Use it as a high-yield review immediately before the exam, or as a structured practice tool
during the unit - the rationales double as concise teaching notes. The recommended writing time is 3 hours, with a
passing score of 70%. Aligned with This exam adheres to the rigorous standards of the Southern New Hampshire
University MBA program, accredited by the New England Commission of Higher Education (NECHE). standards
Section 1: General (Questions 1-200)
1 A multinational conglomerate is evaluating entry into a new
industry characterized by rapid technological change, high capital
intensity, and strong network effects. Which of the following
competitive forces is most likely to be the primary determinant of
long-term profitability in this industry?
A) Bargaining power of suppliers, due to high capital intensity.
B) Threat of new entrants, because network effects create high
barriers to entry.
C) Intensity of rivalry, because rapid technological change increases
competitive dynamism.
D) Threat of substitutes, because network effects often increase
substitution risk.
Answer: B
Rationale: Network effects create strong barriers to entry by increasing
the value of a product as more users adopt it, making it difficult for
new entrants to attract users. While capital intensity and technological
,change affect rivalry and supplier power, network effects are a classic
barrier to entry and thus the primary determinant of profitability in
such industries. Substitutes are less relevant when network effects are
strong.
2 A firm's resource is valuable, rare, and costly to imitate, but the firm
lacks complementary assets to fully exploit it. According to the
resource-based view, this resource will most likely lead to:
A) Temporary competitive advantage, because the resource is still
valuable and rare.
B) Sustainable competitive advantage, as long as the resource
remains rare.
C) Competitive parity, because the firm cannot capture value without
complementary assets.
D) A competitive disadvantage, because the firm is not utilizing the
resource effectively.
Answer: A
Rationale: A resource that is valuable, rare, and costly to imitate can
provide a competitive advantage, but without complementary assets
(e.g., distribution, brand, technology), the firm may not be able to
fully capture the value. This results in temporary advantage because
competitors may eventually develop or acquire complementary assets.
Sustainable advantage requires the resource to be non-substitutable
and the firm to have the necessary complementary assets to exploit it.
3 A company faces declining demand in its core market. Using the
BCG matrix, this business unit would be classified as a 'dog' if it
also has:
A) High market growth and high relative market share.
B) Low market growth and low relative market share.
C) High market growth and low relative market share.
D) Low market growth and high relative market share.
Answer: B
,Rationale: In the BCG matrix, a 'dog' is a business unit with low
market growth and low relative market share. It generates little cash
and does not require significant investment, often being a candidate
for divestiture. High growth with low share is a 'question mark,' low
growth with high share is a 'cash cow,' and high growth with high
share is a 'star.'
4 When a firm diversifies into an unrelated industry, which of the
following is the most critical factor for achieving corporate-level
advantage?
A) Sharing tangible resources between business units.
B) Applying common management capabilities and control systems.
C) Transferring core competencies across industries.
D) Leveraging market power through cross-subsidization.
Answer: B
Rationale: Unrelated diversification creates value through
corporate-level management capabilities, such as efficient capital
allocation, performance management, and governance practices that
can be applied across diverse businesses. Sharing tangible resources or
transferring core competencies is more relevant for related
diversification. Market power through cross-subsidization may be
unethical or illegal and is not a sustainable source of advantage.
5 In the context of global strategy, which of the following is a primary
limitation of a multi-domestic strategy?
A) It fails to adapt to local customer preferences.
B) It leads to high coordination costs and inefficiencies.
C) It prevents the firm from achieving economies of scale.
D) It reduces the firm's responsiveness to local market conditions.
Answer: C
Rationale: A multi-domestic strategy focuses on local responsiveness
but often sacrifices economies of scale because each country operates
independently with its own product lines, marketing, and operations.
, This duplication of efforts increases costs and prevents scale benefits.
It does adapt well to local preferences and is responsive, but
coordination is not the main issue-rather, the lack of integration limits
scale economies.
6 A firm's innovation strategy is to be a 'fast follower.' Which of the
following is most critical for this strategy to succeed?
A) Strong basic research capabilities.
B) Ability to reverse-engineer competitors' products.
C) Speed of product development and process innovation.
D) First-mover advantages in new markets.
Answer: C
Rationale: A fast follower strategy relies on learning from the first
mover's mistakes and quickly bringing an improved version to market.
This requires rapid product development and process innovation to
reduce costs or enhance features. Basic research is more relevant for
first movers, and reverse engineering is only part of the process; speed
is the key. First-mover advantages are not applicable to followers.
7 A CEO is considering a strategic change that will require significant
organizational restructuring. According to Lewin's change model,
which of the following actions is most critical during the
'unfreezing' stage?
A) Communicating the need for change and creating urgency.
B) Implementing new processes and structures.
C) Reinforcing new behaviors through incentives.
D) Evaluating the results of the change initiative.
Answer: A
Rationale: Lewin's change model involves three stages: unfreezing,
changing, and refreezing. Unfreezing is about creating readiness for
change by challenging the status quo, communicating the need, and
building urgency. Implementing new processes belongs to the
'changing' stage, reinforcing behaviors to 'refreezing,' and evaluation
Questions and Detailed Solutions Latest Update 2026/2027 |
Southern New Hampshire University | Downloadable PDF - 200
Questions
This comprehensive final exam assesses mastery of strategic management concepts including industry analysis,
competitive strategy, internal resource analysis, corporate strategy, global strategy, innovation, governance, and
strategic change. It requires synthesis and application of theories to complex business scenarios, emphasizing
analytical rigor and strategic decision-making. It contains 200 multiple-choice questions, each with four
distractors and a fully worked rationale that explains why the keyed answer is correct. Questions are organized
into clearly labelled sections that mirror the major content areas of the course. Targeted learning outcomes
include: Analyze industry structures and competitive forces to identify strategic opportunities and threats.;
Evaluate firm resources and capabilities to determine sources of sustainable competitive advantage.; Formulate
and assess business-level and corporate-level strategies across domestic and global contexts.; Critically evaluate
strategic leadership, governance, and change management processes.. Every item has been reviewed for clinical
accuracy, current guidelines, and clarity so that students can study with confidence and self-correct as they work
through the bank. Use it as a high-yield review immediately before the exam, or as a structured practice tool
during the unit - the rationales double as concise teaching notes. The recommended writing time is 3 hours, with a
passing score of 70%. Aligned with This exam adheres to the rigorous standards of the Southern New Hampshire
University MBA program, accredited by the New England Commission of Higher Education (NECHE). standards
Section 1: General (Questions 1-200)
1 A multinational conglomerate is evaluating entry into a new
industry characterized by rapid technological change, high capital
intensity, and strong network effects. Which of the following
competitive forces is most likely to be the primary determinant of
long-term profitability in this industry?
A) Bargaining power of suppliers, due to high capital intensity.
B) Threat of new entrants, because network effects create high
barriers to entry.
C) Intensity of rivalry, because rapid technological change increases
competitive dynamism.
D) Threat of substitutes, because network effects often increase
substitution risk.
Answer: B
Rationale: Network effects create strong barriers to entry by increasing
the value of a product as more users adopt it, making it difficult for
new entrants to attract users. While capital intensity and technological
,change affect rivalry and supplier power, network effects are a classic
barrier to entry and thus the primary determinant of profitability in
such industries. Substitutes are less relevant when network effects are
strong.
2 A firm's resource is valuable, rare, and costly to imitate, but the firm
lacks complementary assets to fully exploit it. According to the
resource-based view, this resource will most likely lead to:
A) Temporary competitive advantage, because the resource is still
valuable and rare.
B) Sustainable competitive advantage, as long as the resource
remains rare.
C) Competitive parity, because the firm cannot capture value without
complementary assets.
D) A competitive disadvantage, because the firm is not utilizing the
resource effectively.
Answer: A
Rationale: A resource that is valuable, rare, and costly to imitate can
provide a competitive advantage, but without complementary assets
(e.g., distribution, brand, technology), the firm may not be able to
fully capture the value. This results in temporary advantage because
competitors may eventually develop or acquire complementary assets.
Sustainable advantage requires the resource to be non-substitutable
and the firm to have the necessary complementary assets to exploit it.
3 A company faces declining demand in its core market. Using the
BCG matrix, this business unit would be classified as a 'dog' if it
also has:
A) High market growth and high relative market share.
B) Low market growth and low relative market share.
C) High market growth and low relative market share.
D) Low market growth and high relative market share.
Answer: B
,Rationale: In the BCG matrix, a 'dog' is a business unit with low
market growth and low relative market share. It generates little cash
and does not require significant investment, often being a candidate
for divestiture. High growth with low share is a 'question mark,' low
growth with high share is a 'cash cow,' and high growth with high
share is a 'star.'
4 When a firm diversifies into an unrelated industry, which of the
following is the most critical factor for achieving corporate-level
advantage?
A) Sharing tangible resources between business units.
B) Applying common management capabilities and control systems.
C) Transferring core competencies across industries.
D) Leveraging market power through cross-subsidization.
Answer: B
Rationale: Unrelated diversification creates value through
corporate-level management capabilities, such as efficient capital
allocation, performance management, and governance practices that
can be applied across diverse businesses. Sharing tangible resources or
transferring core competencies is more relevant for related
diversification. Market power through cross-subsidization may be
unethical or illegal and is not a sustainable source of advantage.
5 In the context of global strategy, which of the following is a primary
limitation of a multi-domestic strategy?
A) It fails to adapt to local customer preferences.
B) It leads to high coordination costs and inefficiencies.
C) It prevents the firm from achieving economies of scale.
D) It reduces the firm's responsiveness to local market conditions.
Answer: C
Rationale: A multi-domestic strategy focuses on local responsiveness
but often sacrifices economies of scale because each country operates
independently with its own product lines, marketing, and operations.
, This duplication of efforts increases costs and prevents scale benefits.
It does adapt well to local preferences and is responsive, but
coordination is not the main issue-rather, the lack of integration limits
scale economies.
6 A firm's innovation strategy is to be a 'fast follower.' Which of the
following is most critical for this strategy to succeed?
A) Strong basic research capabilities.
B) Ability to reverse-engineer competitors' products.
C) Speed of product development and process innovation.
D) First-mover advantages in new markets.
Answer: C
Rationale: A fast follower strategy relies on learning from the first
mover's mistakes and quickly bringing an improved version to market.
This requires rapid product development and process innovation to
reduce costs or enhance features. Basic research is more relevant for
first movers, and reverse engineering is only part of the process; speed
is the key. First-mover advantages are not applicable to followers.
7 A CEO is considering a strategic change that will require significant
organizational restructuring. According to Lewin's change model,
which of the following actions is most critical during the
'unfreezing' stage?
A) Communicating the need for change and creating urgency.
B) Implementing new processes and structures.
C) Reinforcing new behaviors through incentives.
D) Evaluating the results of the change initiative.
Answer: A
Rationale: Lewin's change model involves three stages: unfreezing,
changing, and refreezing. Unfreezing is about creating readiness for
change by challenging the status quo, communicating the need, and
building urgency. Implementing new processes belongs to the
'changing' stage, reinforcing behaviors to 'refreezing,' and evaluation
