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Strategic Management Final Exam Questions
and Answers 100% Pass
To make a cost-competitive mass-market vehicle, Tesla must do which of the following?
- Maintain the same tooling of its manufacturing facility
- Decrease production volume
- Decrease the cost per vehicle as output increases
- Rely less on robotics - ANS Decrease the cost per vehicle as output increases
Explanation: To make a cost-competitive mass-market vehicle, Tesla must benefit from
economies of scale, decreasing the cost per vehicle as output increases.
Strategic positioning requires which of the following?
- Adopting a zero-sum strategy
- Trying to be everything to everybody
- Using trade-offs
- Focusing on one activity instead of combining them - ANS Using trade-offs
The greater the difference between value creation and cost, the
- Greater a firm's economic contribution
- Less likely that a firm's strategic position will be competitive
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- Less likely a fim will gain competitive advantage
- Greater a firm's competitive parity - ANS Greater a firm's economic contribution
A firm is likely to have a competitive advantage when it
- Minimize the difference between value creation and the costs involved
- Performs at a level similar to the other firms in the industry
- Provides goods similar to those of competitors, but at a higher price
- Provides services that consumers will value more than those of its rivals - ANS Provides
services that consumers will value more than those of its rivals
Which of the following groups will not be considered a company's internal stakeholder?
- Shareholders
- managers
- board members
- Suppliers - ANS Suppliers
Free 2 Roam Inc., an all-terrain vehicle company, is the market leader due to its superior engine
technology and service orientation. These unique qualities have helped the company generate
revenues that are consistently higher than other firms in the same industry. Which of the
following can be concluded about Free 2 Roam Inc. from this scenario?
- It has a competitive advantage over the other firms.
- It has competitive parity with the other firms.
- It has a direct investment in the other firms.
- It has an exchange relationship with the other firms - ANS It has a competitive advantage
over the other firms.
All of the following are examples of internal stakeholders except
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- employees.
- board members.
- stockholders.
- Suppliers. - ANS Suppliers
Which of the following groups is most likely to be considered a firm's internal stakeholder?
- customers
- creditors
- board members
- alliance partners - ANS Board members
Which of the following statements about competitive advantage is false?
- An effective differentiation strategy is key for establishing a competitive advantage.
- A firm's competitive advantage is always absolute, not relative.
- A firm will have a sustainable competitive advantage when it outperforms its competitors over
a prolonged period of time.
- A firm can gain a competitive advantage by providing goods similar to its competitors' goods
at a lower price. - ANS A firm's competitive advantage is always absolute, not relative.
All of the following below are examples of external stakeholders except
- Communities
-Employees
-Government
-Customers - ANS Employees
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________ is a stakeholder attribute that managers should consider at every step in a
stakeholder impact analysis?
- Profit
- Literacy
- Legitimacy
- Authenticity - ANS Legitimacy
Which of the following statements related to a firm's stakeholders is not true?
- If internal or external stakeholders withhold participation in the firm's exchange relationships,
it can have severe negative performance implications.
- While external stakeholders are those who make contributions toward the firm, internal
stakeholders are those who reap all the benefits.
- A firm's stakeholders include organizations and groups along with individuals who can affect
or be affected by the firm's actions.
- Effective stakeholder management is an example of how managers can act to enhance a firm's
competitive advantage. - ANS While external stakeholders are those who make contributions
toward the firm, internal stakeholders are those who reap all the benefits.
Instant Grub is a fast-food restaurant that has recently entered the hospitality industry. Since
most of its competitors are pursuing a low-cost position and doing well, Instant Grub also wants
to adopt the same strategy. Which of the following will be a likely implication of this decision?
- Instant Grub will be able to create higher value for its customers.
- Instant Grub will not face any direct competition in the industry.
- Instant Grub will face low profit potential.
- Instant Grub will be better placed to gain a competitive advantage in the industry. -
ANS Instant Grub will face low profit potential
Which is an example of a philanthropic program by a firm?
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Strategic Management Final Exam Questions
and Answers 100% Pass
To make a cost-competitive mass-market vehicle, Tesla must do which of the following?
- Maintain the same tooling of its manufacturing facility
- Decrease production volume
- Decrease the cost per vehicle as output increases
- Rely less on robotics - ANS Decrease the cost per vehicle as output increases
Explanation: To make a cost-competitive mass-market vehicle, Tesla must benefit from
economies of scale, decreasing the cost per vehicle as output increases.
Strategic positioning requires which of the following?
- Adopting a zero-sum strategy
- Trying to be everything to everybody
- Using trade-offs
- Focusing on one activity instead of combining them - ANS Using trade-offs
The greater the difference between value creation and cost, the
- Greater a firm's economic contribution
- Less likely that a firm's strategic position will be competitive
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
- Less likely a fim will gain competitive advantage
- Greater a firm's competitive parity - ANS Greater a firm's economic contribution
A firm is likely to have a competitive advantage when it
- Minimize the difference between value creation and the costs involved
- Performs at a level similar to the other firms in the industry
- Provides goods similar to those of competitors, but at a higher price
- Provides services that consumers will value more than those of its rivals - ANS Provides
services that consumers will value more than those of its rivals
Which of the following groups will not be considered a company's internal stakeholder?
- Shareholders
- managers
- board members
- Suppliers - ANS Suppliers
Free 2 Roam Inc., an all-terrain vehicle company, is the market leader due to its superior engine
technology and service orientation. These unique qualities have helped the company generate
revenues that are consistently higher than other firms in the same industry. Which of the
following can be concluded about Free 2 Roam Inc. from this scenario?
- It has a competitive advantage over the other firms.
- It has competitive parity with the other firms.
- It has a direct investment in the other firms.
- It has an exchange relationship with the other firms - ANS It has a competitive advantage
over the other firms.
All of the following are examples of internal stakeholders except
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
- employees.
- board members.
- stockholders.
- Suppliers. - ANS Suppliers
Which of the following groups is most likely to be considered a firm's internal stakeholder?
- customers
- creditors
- board members
- alliance partners - ANS Board members
Which of the following statements about competitive advantage is false?
- An effective differentiation strategy is key for establishing a competitive advantage.
- A firm's competitive advantage is always absolute, not relative.
- A firm will have a sustainable competitive advantage when it outperforms its competitors over
a prolonged period of time.
- A firm can gain a competitive advantage by providing goods similar to its competitors' goods
at a lower price. - ANS A firm's competitive advantage is always absolute, not relative.
All of the following below are examples of external stakeholders except
- Communities
-Employees
-Government
-Customers - ANS Employees
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
________ is a stakeholder attribute that managers should consider at every step in a
stakeholder impact analysis?
- Profit
- Literacy
- Legitimacy
- Authenticity - ANS Legitimacy
Which of the following statements related to a firm's stakeholders is not true?
- If internal or external stakeholders withhold participation in the firm's exchange relationships,
it can have severe negative performance implications.
- While external stakeholders are those who make contributions toward the firm, internal
stakeholders are those who reap all the benefits.
- A firm's stakeholders include organizations and groups along with individuals who can affect
or be affected by the firm's actions.
- Effective stakeholder management is an example of how managers can act to enhance a firm's
competitive advantage. - ANS While external stakeholders are those who make contributions
toward the firm, internal stakeholders are those who reap all the benefits.
Instant Grub is a fast-food restaurant that has recently entered the hospitality industry. Since
most of its competitors are pursuing a low-cost position and doing well, Instant Grub also wants
to adopt the same strategy. Which of the following will be a likely implication of this decision?
- Instant Grub will be able to create higher value for its customers.
- Instant Grub will not face any direct competition in the industry.
- Instant Grub will face low profit potential.
- Instant Grub will be better placed to gain a competitive advantage in the industry. -
ANS Instant Grub will face low profit potential
Which is an example of a philanthropic program by a firm?
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