Updated MGMT2140 Practice Exam 2
– Management Theory and Evolution
Exam Practice Questions And
Correct Answers (Verified Answers)
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Management Exam 2
Strategic Positioning
Strategy that attempts to achieve sustainable competitive
advantage by preserving what is distinctive about a company
What is strategy and what are the different types of it?
Strategy is the creation of a unique and valuable position
1. Few needs, many customers (ex. crocs)
2. Broad needs, few customers (ex. buybuy baby)
3. Broad needs, many customers. (ex. pepsico)
Levels of Strategy
1. Corporate (focuses on the organization as a whole)
2. Business (focuses on individual business units or
product/service lines)
3. Functional (a plan of action by each functional area of the
organization to support higher strategies)
The Five Steps of the Strategic-Management Process
1. Establish the mission and the vision
2. Assess the current reality
3. Formulate the grand strategy
4. Implement the strategy
5. Maintain strategic control
,Current Reality Assessment
Assessment to look at where the organization stands and see
what is working and what could be different so as to maximize
efficiency and effectiveness in achieving the organization's
mission
Strategy Formulation
the process of choosing among different strategies and altering
them to best fit the organization's needs
Strategy Implementation
The implementation of strategic plans
Strategic Control
monitoring performance to ensure that strategic plans are being
implemented and taking corrective action as needed
Sustainable Competitive Advantage
exists when other companies cannot duplicate the value delivered
to customers
SWOT analysis
a search for the Strengths, Weaknesses, Opportunities, and
Threats affecting the organization
Organizational Strengths
skills and capabilities that give the organization special
competencies and competitive advantages in executing strategies
in pursuit of its mission
Organizational Threats
environmental factors that hinder an organization's achieving a
competitive advantage
PESTEL
A strategic analysis tool that examines several distinct categories
in the macro environment: Political, Economic, Sociocultural,
Technological, Environmental, and Legal.
VRIO
a framework for analyzing a resource or capability to determine its
competitive strategic potential by answering four questions about
its Value, Rarity, Imitability, and Organization
Forecast
, a vision or projection of the future (accurate forecasting enables
managers to acquire, use, expend, and reallocate organizational
resources effectively and efficiently)
Trend Analysis
hypothetical extension of a past series of events into the future
Scenario Analysis
the creation of alternative hypothetical but equally likely future
conditions
Benchmarking
a process by which a company compares its performance with
that of high-performing organizations
3 Overall Types of Corporate Strategy
1. growth strategy (involves expansions-- as in sales revenues,
market shares, etc)
2. stability strategy (grand strategy that involves little or no
significant change)
3. defensive strategy (a grand strategy that involves reduction in
the organizatio's efforts)
BCG Matrix
A management strategy by which companies evaluate their
strategic business units on the basis of (1) their business growth
rates and (2) their share of the market
Diversification
Strategy by which a company operates several businesses in
order to spread the risk
Related Diversification
when a company purchases a new business that is related to the
company's existing business portfolio
Unrelated Diversification
occurs when a company acquires another company in a
completely unrelated business
Vertical Integration
– Management Theory and Evolution
Exam Practice Questions And
Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
Download Pdf.
Management Exam 2
Strategic Positioning
Strategy that attempts to achieve sustainable competitive
advantage by preserving what is distinctive about a company
What is strategy and what are the different types of it?
Strategy is the creation of a unique and valuable position
1. Few needs, many customers (ex. crocs)
2. Broad needs, few customers (ex. buybuy baby)
3. Broad needs, many customers. (ex. pepsico)
Levels of Strategy
1. Corporate (focuses on the organization as a whole)
2. Business (focuses on individual business units or
product/service lines)
3. Functional (a plan of action by each functional area of the
organization to support higher strategies)
The Five Steps of the Strategic-Management Process
1. Establish the mission and the vision
2. Assess the current reality
3. Formulate the grand strategy
4. Implement the strategy
5. Maintain strategic control
,Current Reality Assessment
Assessment to look at where the organization stands and see
what is working and what could be different so as to maximize
efficiency and effectiveness in achieving the organization's
mission
Strategy Formulation
the process of choosing among different strategies and altering
them to best fit the organization's needs
Strategy Implementation
The implementation of strategic plans
Strategic Control
monitoring performance to ensure that strategic plans are being
implemented and taking corrective action as needed
Sustainable Competitive Advantage
exists when other companies cannot duplicate the value delivered
to customers
SWOT analysis
a search for the Strengths, Weaknesses, Opportunities, and
Threats affecting the organization
Organizational Strengths
skills and capabilities that give the organization special
competencies and competitive advantages in executing strategies
in pursuit of its mission
Organizational Threats
environmental factors that hinder an organization's achieving a
competitive advantage
PESTEL
A strategic analysis tool that examines several distinct categories
in the macro environment: Political, Economic, Sociocultural,
Technological, Environmental, and Legal.
VRIO
a framework for analyzing a resource or capability to determine its
competitive strategic potential by answering four questions about
its Value, Rarity, Imitability, and Organization
Forecast
, a vision or projection of the future (accurate forecasting enables
managers to acquire, use, expend, and reallocate organizational
resources effectively and efficiently)
Trend Analysis
hypothetical extension of a past series of events into the future
Scenario Analysis
the creation of alternative hypothetical but equally likely future
conditions
Benchmarking
a process by which a company compares its performance with
that of high-performing organizations
3 Overall Types of Corporate Strategy
1. growth strategy (involves expansions-- as in sales revenues,
market shares, etc)
2. stability strategy (grand strategy that involves little or no
significant change)
3. defensive strategy (a grand strategy that involves reduction in
the organizatio's efforts)
BCG Matrix
A management strategy by which companies evaluate their
strategic business units on the basis of (1) their business growth
rates and (2) their share of the market
Diversification
Strategy by which a company operates several businesses in
order to spread the risk
Related Diversification
when a company purchases a new business that is related to the
company's existing business portfolio
Unrelated Diversification
occurs when a company acquires another company in a
completely unrelated business
Vertical Integration
