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Strategic MGMT Exam Questions and
Answers
What question does the study of Strategic Management answer?
Ans: "Why do some firms outperform other firms?"
Economies of _____ refer to a cost advantage that is created when a
firm can produce a good or service at a lower per unit price due to
producing the good or service in large quantities. Ans: scale
A(n) ___________ strategy is the strategy that an organization
actually follows. Ans: realized
Which of the following is NOT part of the Strategic Management
Process? Ans: Strategy Concentration
Strategic Management is important for nonprofit enterprises as
well as business seeking a profit. Ans: True
Which statement is NOT part of Abell's framework for defining a
business? Ans: Where are customers being satisfied
As a test of a winning strategy, the Goodness of Fit Test answers
which question? Ans: How well does strategy fit the firm's
situation?
A strategic decision is consequential if it: Ans: involves significant
resources and commitment which is not easily changed.
Strategy is a complex concept that involves many different
processes and activities within an organization. Ans: True
A viable business model requires that a firm: Ans: sell goods or
services for more than it costs the firm to create and distribute
those goods.
Which of the following would be considered internal stakeholders?
Ans: Employees
Skyway manufactures fighter jets. It aims to be the top aircraft
manufacturing company in the world. This is an example of the
__________ of the company. Ans: Vision
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A mission ignores the key elements of the organization's past and
present and looks mostly towards the future. Ans: False
A charitable organization provides education to poor children. It
aims at providing education to every child who cannot afford to
pay for his or her own education. This is an example of the
___________ of the organization. Ans: mission
An organization is more effective to the extent that its vision and
its mission target employees' effort in the same direction. Ans:
True
An automobile manufacturing company wants to be the first
company in the world to launch a car that would require no
human intervention to run on the road. It wants to do so by year
2020. The progress of the project can be easily calculated and
assessed. The fact that this project can be easily assessed reflects
the _____________ dimension of a goal. Ans: measureable
___________ refers to an approach to assessing performance that
targets managers' attention on four areas: financial, customer,
internal business process, and learning and growth. Ans: The
balanced scorecard
Which of the following statements describes the term "risk-taking"
as a dimension of entrepreneurial orientation? Ans: It refers to the
tendency to engage in bold rather than cautious actions.
A well-formulated vision that is embraced by employees can give
an organization an edge over its rivals. Ans: True
An automobile manufacturing company wants to be the first
company in the world to launch a car that would require no
human intervention to run on the road. It wants to do so by year
2020. The fact that the company has a set target date to complete
the task reflects the _____________ dimension of a goal. Ans: Time-
bound
The general environment, a component of the environment of an
organization, is also called the: Ans: macro-environment
© 2025 All rights reserved
Strategic MGMT Exam Questions and
Answers
What question does the study of Strategic Management answer?
Ans: "Why do some firms outperform other firms?"
Economies of _____ refer to a cost advantage that is created when a
firm can produce a good or service at a lower per unit price due to
producing the good or service in large quantities. Ans: scale
A(n) ___________ strategy is the strategy that an organization
actually follows. Ans: realized
Which of the following is NOT part of the Strategic Management
Process? Ans: Strategy Concentration
Strategic Management is important for nonprofit enterprises as
well as business seeking a profit. Ans: True
Which statement is NOT part of Abell's framework for defining a
business? Ans: Where are customers being satisfied
As a test of a winning strategy, the Goodness of Fit Test answers
which question? Ans: How well does strategy fit the firm's
situation?
A strategic decision is consequential if it: Ans: involves significant
resources and commitment which is not easily changed.
Strategy is a complex concept that involves many different
processes and activities within an organization. Ans: True
A viable business model requires that a firm: Ans: sell goods or
services for more than it costs the firm to create and distribute
those goods.
Which of the following would be considered internal stakeholders?
Ans: Employees
Skyway manufactures fighter jets. It aims to be the top aircraft
manufacturing company in the world. This is an example of the
__________ of the company. Ans: Vision
© 2025 All rights reserved
, 2 | Page
A mission ignores the key elements of the organization's past and
present and looks mostly towards the future. Ans: False
A charitable organization provides education to poor children. It
aims at providing education to every child who cannot afford to
pay for his or her own education. This is an example of the
___________ of the organization. Ans: mission
An organization is more effective to the extent that its vision and
its mission target employees' effort in the same direction. Ans:
True
An automobile manufacturing company wants to be the first
company in the world to launch a car that would require no
human intervention to run on the road. It wants to do so by year
2020. The progress of the project can be easily calculated and
assessed. The fact that this project can be easily assessed reflects
the _____________ dimension of a goal. Ans: measureable
___________ refers to an approach to assessing performance that
targets managers' attention on four areas: financial, customer,
internal business process, and learning and growth. Ans: The
balanced scorecard
Which of the following statements describes the term "risk-taking"
as a dimension of entrepreneurial orientation? Ans: It refers to the
tendency to engage in bold rather than cautious actions.
A well-formulated vision that is embraced by employees can give
an organization an edge over its rivals. Ans: True
An automobile manufacturing company wants to be the first
company in the world to launch a car that would require no
human intervention to run on the road. It wants to do so by year
2020. The fact that the company has a set target date to complete
the task reflects the _____________ dimension of a goal. Ans: Time-
bound
The general environment, a component of the environment of an
organization, is also called the: Ans: macro-environment
© 2025 All rights reserved
