1 | Page
Strategic MGMT Exam Questions with
Correct Answers
A company achieves competitive advantage when Ans: it has
some type of edge over rivals in attracting buyers and coping with
competitive forces
Among all the things managers do, nothing effects a company's
ultimate success or failure more fundamentally than Ans: how all
its management team charts the company's direction, develops
competitively effective strategies and business approaches, and
pursues what needs to be done internally tp produce good day -in
day out
Two crucial elements of a companys business model are Ans: its
customer value proposition and its profit proposition or "profit
formula"
The heart and soul of any strategy Ans: Are the actions and moves
in the market place that managers are taking to gain a competitive
advantage over rivals
Fro a companys strategy to qualify as "ethical" it cannot entail Ans:
Actions or behaviors that are deceitful, unfair, or harmful, to
others or unreasonably damaging to the environment.
Which of the following statements about a company's strategy is
true? Ans: A companys strategy is typically a blend of proactive
and reactive strategy elements
Which one of the following questions can be used to distinguish a
winning strategy from a mediocre or losing strategy? Ans: How
well does the strategy fit the company's situation
A company's strategy is most accurately defined as Ans:
management's commitment to pursue a particular set of actions in
attracting and pleasing customers, competing successfully,
capitalizing on opportunities to grow the business, responding to
changing market conditions, conducting operations and achieving
the targeted financial and market performance
© 2025 All rights reserved
, 2 | Page
The customer value proposition portion of a company's business
model concerns Ans: the company's approach to satisfying buyer
needs and requirements at a price they will considers a good value
The competitive market moves and business approaches a
companys management is using to attract and please customers,
compete successfully, capitalize on opportunities to grow the
business, respond to changing market conditions, conduct
operations, and achieve the target financial and market
performance is what defines a company Ans: STRATEGY
The difference between a company's strategy and a companys
business model is that Ans: strategy relates broadly to a
company's competitive moves and business approaches (which
may or may not lead to profitability) while its business model
relates to whether the company can execute its customer value
proposition profitability
Which of the following is NOT the reason that a company's
strategy evolves over time? Ans: The ongoing need to frequently
pursue entirely new ways to cut costs and boost profitability
Which one of the following statements about whether a company's
strategy can be considered ethically true? Ans: Just keeping a
company's strategic actions within the bounds of what is legal
does not mean the strategy is ethical
Is it normal for a company's strategy to end up being Ans: a blend
of proactive actions to improve the company's competitiveness
and financial performance and as-needed reactions to
unanticipated developments and fresh market conditions.
According to figure 1.1, which of the following is NOT something
to look for in identifying a company's strategy? Ans: actions to
strengthen the company's competitive position by hiring one or
more new top executives for laying off a portion of its work force
or paying down its long-term debt
The key success factors in an industry Ans: are those competitive
factors that most affect industry members' abilities to prosper in
the marketplace—the particular strategy elements, product
attributes, operational approaches, resources, and competitive
© 2025 All rights reserved
, 3 | Page
capabilities that spell the difference between being a strong
competitor and a weak one, and between profit and loss.
Whether supplier bargaining power represents a strong or weak
source of competitive pressure is affected by Ans: whether the
item being supplied is a standard item (or commodity) or, instead,
whether certain suppliers provided a differentiated input that
enhances the performance or quality of the industry product
The rivalry among competing sellers tends to be more intense
when Ans: industry members have too much inventory or
significant amounts of idle production capacity, especially if the
industry product entails high storage costs or high fixed costs
The competitive pressures from substitute products tend to be
weaker when Ans: buyers have high costs in switching to
substitutes
Which of the following do NOT qualify as potential driving forces
capable of inducing fundamental changes in industry and
competitive conditions? Ans: Increases in supplier bargaining
power and increases in the prices of substitute products
Which of the following are Important considerations in evaluating
whether an industry's outlook is conducive to good profitability?
Ans: the industry's growth potential, the anticipated strength of
competitive forces, and whether the industry and the company are
being favorably or unfavorably impacted by the macro-
environmental factors
Closely monitoring the strategies and situations of key rivals and
trying to prepare for the actions they are likely to take Ans: avoids
the mistake of flying blind into competitive battle without having
some inkling of what actions rival may take thereby reducing the
risk of being caught napping and suffering a damaging loss of
sales and profits
Which one of the following generally does NOT acts to weaken the
rivalry among competing sellers? Ans: Industry conditions that
tempt rivals to use price cuts or other competitive weapons to
boost unit sales
© 2025 All rights reserved
Strategic MGMT Exam Questions with
Correct Answers
A company achieves competitive advantage when Ans: it has
some type of edge over rivals in attracting buyers and coping with
competitive forces
Among all the things managers do, nothing effects a company's
ultimate success or failure more fundamentally than Ans: how all
its management team charts the company's direction, develops
competitively effective strategies and business approaches, and
pursues what needs to be done internally tp produce good day -in
day out
Two crucial elements of a companys business model are Ans: its
customer value proposition and its profit proposition or "profit
formula"
The heart and soul of any strategy Ans: Are the actions and moves
in the market place that managers are taking to gain a competitive
advantage over rivals
Fro a companys strategy to qualify as "ethical" it cannot entail Ans:
Actions or behaviors that are deceitful, unfair, or harmful, to
others or unreasonably damaging to the environment.
Which of the following statements about a company's strategy is
true? Ans: A companys strategy is typically a blend of proactive
and reactive strategy elements
Which one of the following questions can be used to distinguish a
winning strategy from a mediocre or losing strategy? Ans: How
well does the strategy fit the company's situation
A company's strategy is most accurately defined as Ans:
management's commitment to pursue a particular set of actions in
attracting and pleasing customers, competing successfully,
capitalizing on opportunities to grow the business, responding to
changing market conditions, conducting operations and achieving
the targeted financial and market performance
© 2025 All rights reserved
, 2 | Page
The customer value proposition portion of a company's business
model concerns Ans: the company's approach to satisfying buyer
needs and requirements at a price they will considers a good value
The competitive market moves and business approaches a
companys management is using to attract and please customers,
compete successfully, capitalize on opportunities to grow the
business, respond to changing market conditions, conduct
operations, and achieve the target financial and market
performance is what defines a company Ans: STRATEGY
The difference between a company's strategy and a companys
business model is that Ans: strategy relates broadly to a
company's competitive moves and business approaches (which
may or may not lead to profitability) while its business model
relates to whether the company can execute its customer value
proposition profitability
Which of the following is NOT the reason that a company's
strategy evolves over time? Ans: The ongoing need to frequently
pursue entirely new ways to cut costs and boost profitability
Which one of the following statements about whether a company's
strategy can be considered ethically true? Ans: Just keeping a
company's strategic actions within the bounds of what is legal
does not mean the strategy is ethical
Is it normal for a company's strategy to end up being Ans: a blend
of proactive actions to improve the company's competitiveness
and financial performance and as-needed reactions to
unanticipated developments and fresh market conditions.
According to figure 1.1, which of the following is NOT something
to look for in identifying a company's strategy? Ans: actions to
strengthen the company's competitive position by hiring one or
more new top executives for laying off a portion of its work force
or paying down its long-term debt
The key success factors in an industry Ans: are those competitive
factors that most affect industry members' abilities to prosper in
the marketplace—the particular strategy elements, product
attributes, operational approaches, resources, and competitive
© 2025 All rights reserved
, 3 | Page
capabilities that spell the difference between being a strong
competitor and a weak one, and between profit and loss.
Whether supplier bargaining power represents a strong or weak
source of competitive pressure is affected by Ans: whether the
item being supplied is a standard item (or commodity) or, instead,
whether certain suppliers provided a differentiated input that
enhances the performance or quality of the industry product
The rivalry among competing sellers tends to be more intense
when Ans: industry members have too much inventory or
significant amounts of idle production capacity, especially if the
industry product entails high storage costs or high fixed costs
The competitive pressures from substitute products tend to be
weaker when Ans: buyers have high costs in switching to
substitutes
Which of the following do NOT qualify as potential driving forces
capable of inducing fundamental changes in industry and
competitive conditions? Ans: Increases in supplier bargaining
power and increases in the prices of substitute products
Which of the following are Important considerations in evaluating
whether an industry's outlook is conducive to good profitability?
Ans: the industry's growth potential, the anticipated strength of
competitive forces, and whether the industry and the company are
being favorably or unfavorably impacted by the macro-
environmental factors
Closely monitoring the strategies and situations of key rivals and
trying to prepare for the actions they are likely to take Ans: avoids
the mistake of flying blind into competitive battle without having
some inkling of what actions rival may take thereby reducing the
risk of being caught napping and suffering a damaging loss of
sales and profits
Which one of the following generally does NOT acts to weaken the
rivalry among competing sellers? Ans: Industry conditions that
tempt rivals to use price cuts or other competitive weapons to
boost unit sales
© 2025 All rights reserved
