MNG3701 Strategic Management Assignment 1 Solution
2026 | Corporate Governance & Strategy Formulation
Memo | Full Case Study Briefing & Multiple-Choice
Question Rationales | UNISA BCom
QUESTION 1
Which of the following best describes the concept of strategy?
A. A detailed operational plan for daily activities
B. The long-term direction and scope of an organization to achieve advantage
through its configuration of resources within a changing environment
C. A short-term tactical response to market changes
D. A financial budget for the upcoming fiscal year
Answer: B. The long-term direction and scope of an organization to achieve
advantage through its configuration of resources within a changing
environment
Rationale: Strategy is defined as the long-term direction and scope of an organization
to achieve advantage through its configuration of resources within a changing
environment. It involves making choices about where to compete and how to compete
to achieve sustainable competitive advantage .
QUESTION 2
The strategic management process consists of which three main stages?
A. Planning, Organizing, Controlling
B. Analysis, Formulation, Implementation
C. Strategy, Structure, Systems
D. Input, Process, Output
Answer: B. Analysis, Formulation, Implementation
Rationale: The strategic management process consists of three main stages: (1)
Strategic Analysis - analyzing the internal and external environment, (2) Strategic
Formulation - developing the strategy, and (3) Strategic Implementation - executing
the strategy .
,QUESTION 3
Which of the following is NOT a characteristic of strategic decisions?
A. They are long-term in nature
B. They are usually routine and repetitive
C. They involve significant resource commitment
D. They are influenced by the external environment
Answer: B. They are usually routine and repetitive
Rationale: Strategic decisions are characterized by being long-term, involving
significant resource commitment, being influenced by the external environment, and
being complex and non-routine. Routine and repetitive decisions are typically
operational or tactical, not strategic .
QUESTION 4
What is the primary purpose of a mission statement?
A. To describe the organization's financial goals
B. To explain the organization's reason for existence and its fundamental purpose
C. To list the organization's products and services
D. To outline the organization's annual budget
Answer: B. To explain the organization's reason for existence and its
fundamental purpose
Rationale: A mission statement explains the organization's reason for existence and its
fundamental purpose. It answers the question "What business are we in?" and provides
a framework for strategic decision-making .
QUESTION 5
Corporate-level strategy is primarily concerned with:
A. How to compete in a particular market
B. The overall scope of the organization and how value is added across business units
C. Day-to-day operational efficiency
D. Employee motivation and satisfaction
,Answer: B. The overall scope of the organization and how value is added across
business units
Rationale: Corporate-level strategy is concerned with the overall scope of the
organization, including which businesses to be in, how resources should be allocated
across business units, and how value is added through synergies and portfolio
management .
QUESTION 6
Business-level strategy is primarily concerned with:
A. The overall scope of the organization
B. How to compete successfully in a particular market or industry
C. Financial management and accounting
D. Human resource management policies
Answer: B. How to compete successfully in a particular market or industry
Rationale: Business-level strategy focuses on how to compete successfully in a
particular market or industry. It involves decisions about competitive positioning,
differentiation, cost leadership, and serving specific customer segments .
QUESTION 7
Which of the following is a characteristic of strategic management?
A. It is primarily concerned with short-term operational efficiency
B. It focuses only on financial performance indicators
C. It involves making decisions with long-term implications for the entire
organization
D. It is only relevant for large corporations
Answer: C. It involves making decisions with long-term implications for the
entire organization
Rationale: Strategic management involves making decisions with long-term
implications for the entire organization. It addresses the fundamental question of
"What should the organization be doing?" and considers the organization's relationship
with its external environment .
, QUESTION 8
The term "stakeholder" refers to:
A. Only the shareholders of the organization
B. Only the employees of the organization
C. Any individual or group that has an interest in or is affected by the activities of the
organization
D. Only the customers of the organization
Answer: C. Any individual or group that has an interest in or is affected by the
activities of the organization
Rationale: Stakeholders are individuals or groups who have an interest in or are
affected by the activities of the organization. This includes shareholders, employees,
customers, suppliers, government, local communities, and other interested parties .
QUESTION 9
Which of the following best describes the concept of "strategic fit"?
A. The alignment between organizational structure and strategy
B. The match between an organization's resources and capabilities and its external
environment
C. The financial balance between revenue and expenses
D. The balance between employee skills and job requirements
Answer: B. The match between an organization's resources and capabilities and
its external environment
Rationale: Strategic fit refers to the match between an organization's internal resources
and capabilities and the opportunities and threats in its external environment.
Achieving strategic fit is essential for sustainable competitive advantage .
QUESTION 10
Operational effectiveness is different from strategy because:
A. It is more important than strategy
B. It focuses on performing similar activities better than rivals, while strategy involves
2026 | Corporate Governance & Strategy Formulation
Memo | Full Case Study Briefing & Multiple-Choice
Question Rationales | UNISA BCom
QUESTION 1
Which of the following best describes the concept of strategy?
A. A detailed operational plan for daily activities
B. The long-term direction and scope of an organization to achieve advantage
through its configuration of resources within a changing environment
C. A short-term tactical response to market changes
D. A financial budget for the upcoming fiscal year
Answer: B. The long-term direction and scope of an organization to achieve
advantage through its configuration of resources within a changing
environment
Rationale: Strategy is defined as the long-term direction and scope of an organization
to achieve advantage through its configuration of resources within a changing
environment. It involves making choices about where to compete and how to compete
to achieve sustainable competitive advantage .
QUESTION 2
The strategic management process consists of which three main stages?
A. Planning, Organizing, Controlling
B. Analysis, Formulation, Implementation
C. Strategy, Structure, Systems
D. Input, Process, Output
Answer: B. Analysis, Formulation, Implementation
Rationale: The strategic management process consists of three main stages: (1)
Strategic Analysis - analyzing the internal and external environment, (2) Strategic
Formulation - developing the strategy, and (3) Strategic Implementation - executing
the strategy .
,QUESTION 3
Which of the following is NOT a characteristic of strategic decisions?
A. They are long-term in nature
B. They are usually routine and repetitive
C. They involve significant resource commitment
D. They are influenced by the external environment
Answer: B. They are usually routine and repetitive
Rationale: Strategic decisions are characterized by being long-term, involving
significant resource commitment, being influenced by the external environment, and
being complex and non-routine. Routine and repetitive decisions are typically
operational or tactical, not strategic .
QUESTION 4
What is the primary purpose of a mission statement?
A. To describe the organization's financial goals
B. To explain the organization's reason for existence and its fundamental purpose
C. To list the organization's products and services
D. To outline the organization's annual budget
Answer: B. To explain the organization's reason for existence and its
fundamental purpose
Rationale: A mission statement explains the organization's reason for existence and its
fundamental purpose. It answers the question "What business are we in?" and provides
a framework for strategic decision-making .
QUESTION 5
Corporate-level strategy is primarily concerned with:
A. How to compete in a particular market
B. The overall scope of the organization and how value is added across business units
C. Day-to-day operational efficiency
D. Employee motivation and satisfaction
,Answer: B. The overall scope of the organization and how value is added across
business units
Rationale: Corporate-level strategy is concerned with the overall scope of the
organization, including which businesses to be in, how resources should be allocated
across business units, and how value is added through synergies and portfolio
management .
QUESTION 6
Business-level strategy is primarily concerned with:
A. The overall scope of the organization
B. How to compete successfully in a particular market or industry
C. Financial management and accounting
D. Human resource management policies
Answer: B. How to compete successfully in a particular market or industry
Rationale: Business-level strategy focuses on how to compete successfully in a
particular market or industry. It involves decisions about competitive positioning,
differentiation, cost leadership, and serving specific customer segments .
QUESTION 7
Which of the following is a characteristic of strategic management?
A. It is primarily concerned with short-term operational efficiency
B. It focuses only on financial performance indicators
C. It involves making decisions with long-term implications for the entire
organization
D. It is only relevant for large corporations
Answer: C. It involves making decisions with long-term implications for the
entire organization
Rationale: Strategic management involves making decisions with long-term
implications for the entire organization. It addresses the fundamental question of
"What should the organization be doing?" and considers the organization's relationship
with its external environment .
, QUESTION 8
The term "stakeholder" refers to:
A. Only the shareholders of the organization
B. Only the employees of the organization
C. Any individual or group that has an interest in or is affected by the activities of the
organization
D. Only the customers of the organization
Answer: C. Any individual or group that has an interest in or is affected by the
activities of the organization
Rationale: Stakeholders are individuals or groups who have an interest in or are
affected by the activities of the organization. This includes shareholders, employees,
customers, suppliers, government, local communities, and other interested parties .
QUESTION 9
Which of the following best describes the concept of "strategic fit"?
A. The alignment between organizational structure and strategy
B. The match between an organization's resources and capabilities and its external
environment
C. The financial balance between revenue and expenses
D. The balance between employee skills and job requirements
Answer: B. The match between an organization's resources and capabilities and
its external environment
Rationale: Strategic fit refers to the match between an organization's internal resources
and capabilities and the opportunities and threats in its external environment.
Achieving strategic fit is essential for sustainable competitive advantage .
QUESTION 10
Operational effectiveness is different from strategy because:
A. It is more important than strategy
B. It focuses on performing similar activities better than rivals, while strategy involves
