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strategic mgmt Exam Questions with Correct
Answers
A ________ is a course of action that managers take in the effort to
attain SUPERIOR PERFORMANCE. Ans: strategy
For business, superior performance is demonstrated through
above average PROFITABILITY, as compared to others in the same
industry.
________ is typically measured using after tax return on invested
capital Ans: Profitability
The _________ that an organization's managers pursue have a
major impact on its performance relative to its peers. Ans:
strategies
When a firm's profitability is greater than the average profitability
for all firms in its industry, it has a _______ _______ over its rivals
Ans: competitive advantage
_______ ________ Capabilities
cannot be easily bested, matched, or imitated by rivals.
represent superior know-how and specialized abilities that require
time to fully develop and perfect.
result in a sustainable competitive advantage over rivals.
*The Importance of Capabilities in Building and Sustaining
Competitive Advantage Ans: Competitively Valuable
A ____-____ ______ strategy—achieving a cost-based advantage over
rivals. Ans: low-cost provider
A _____ ______ strategy—seeking to differentiate products or
services from rivals' in ways that will appeal to a broad spectrum
of buyers. Ans: broad differentiation
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A _______ ____-____ strategy—concentrating on a narrow buyer
segment (or market niche) and outcompeting rivals by having
lower costs than rivals and thus being able to serve niche members
at a lower price. Ans: focused low-cost
A _____ _____ strategy—concentrating on a narrow buyer segment
(or market niche) and outcompeting rivals by offering niche
members customized attributes that meet their tastes and
requirements better than rivals' products. Ans: focused
differentiation
A ____-____ provider strategy— a low cost-differentiation hybrid
giving customers more value for the money by satisfying buyers'
expectations on key quality/features/ performance/service
attributes, while beating their price expectations. Ans: best-cost
A company's _____ _____ sets forth how its strategy and operating
approaches will create value for customers, while at the same time
generate ample revenues to cover costs and realize a profit. Ans:
business model
The two elements of a company's business model are its (1) ______
_____ _______ and (2) its ______ ______ Ans: customer value
proposition
profit formula
Management's blueprint for delivering a valuable product or
service to customers in a manner that will yield an attractive
profit. It's the road map to money... Ans: Business Model
_______ _______ _______defines how the firm will satisfy buyer
wants and needs at a price customers consider a good value. Ans:
Customer value proposition
______ ______ describes the firm's approach to determining a cost
structure that will allow for acceptable profits given the pricing
tied to its customer value proposition. Ans: Profit formula
Strategic Fit -How well does the strategy fit the company's
situation?
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Performance- Is the strategy producing good company
performance?
Competitive Advantage -Is the strategy helping achieve a
sustainable competitive advantage? Ans: The Three Tests of a
Winning Strategy
Is top management's view of "where we are going"— the firm's
direction and its future product-marketcustomer-technology focus
to stakeholders.
Is distinctive and specific to a particular organization.
Avoids use of generic, innocuous, and uninspiring language that
could apply to most any firm.
Definitively states how the company's leaders intend to position
the firm beyond where it is today. Ans: Strategic Vision
• Ideally, a company ______ ______ is sufficiently descriptive to:
Identify the company's products or services.
Specify the buyer needs it seeks to satisfy.
Specify the customer groups or markets it is endeavoring to serve.
Specify its approach to pleasing customers.
Give the company its own identity. Ans: mission statement
Profit is not "who we are and what we do.", but more like an
objective.
• ___ ______ ______ concerns a firm's future business path—"where
we are going or where do I want to take the company?"
Markets to be pursued
Future product/ market/customer/ technology focus Ans: A
strategic vision
The _____ ______ of a firm focuses on its present business
purpose—"who we are and what we do"
© 2025 All rights reserved
strategic mgmt Exam Questions with Correct
Answers
A ________ is a course of action that managers take in the effort to
attain SUPERIOR PERFORMANCE. Ans: strategy
For business, superior performance is demonstrated through
above average PROFITABILITY, as compared to others in the same
industry.
________ is typically measured using after tax return on invested
capital Ans: Profitability
The _________ that an organization's managers pursue have a
major impact on its performance relative to its peers. Ans:
strategies
When a firm's profitability is greater than the average profitability
for all firms in its industry, it has a _______ _______ over its rivals
Ans: competitive advantage
_______ ________ Capabilities
cannot be easily bested, matched, or imitated by rivals.
represent superior know-how and specialized abilities that require
time to fully develop and perfect.
result in a sustainable competitive advantage over rivals.
*The Importance of Capabilities in Building and Sustaining
Competitive Advantage Ans: Competitively Valuable
A ____-____ ______ strategy—achieving a cost-based advantage over
rivals. Ans: low-cost provider
A _____ ______ strategy—seeking to differentiate products or
services from rivals' in ways that will appeal to a broad spectrum
of buyers. Ans: broad differentiation
© 2025 All rights reserved
, 2 | Page
A _______ ____-____ strategy—concentrating on a narrow buyer
segment (or market niche) and outcompeting rivals by having
lower costs than rivals and thus being able to serve niche members
at a lower price. Ans: focused low-cost
A _____ _____ strategy—concentrating on a narrow buyer segment
(or market niche) and outcompeting rivals by offering niche
members customized attributes that meet their tastes and
requirements better than rivals' products. Ans: focused
differentiation
A ____-____ provider strategy— a low cost-differentiation hybrid
giving customers more value for the money by satisfying buyers'
expectations on key quality/features/ performance/service
attributes, while beating their price expectations. Ans: best-cost
A company's _____ _____ sets forth how its strategy and operating
approaches will create value for customers, while at the same time
generate ample revenues to cover costs and realize a profit. Ans:
business model
The two elements of a company's business model are its (1) ______
_____ _______ and (2) its ______ ______ Ans: customer value
proposition
profit formula
Management's blueprint for delivering a valuable product or
service to customers in a manner that will yield an attractive
profit. It's the road map to money... Ans: Business Model
_______ _______ _______defines how the firm will satisfy buyer
wants and needs at a price customers consider a good value. Ans:
Customer value proposition
______ ______ describes the firm's approach to determining a cost
structure that will allow for acceptable profits given the pricing
tied to its customer value proposition. Ans: Profit formula
Strategic Fit -How well does the strategy fit the company's
situation?
© 2025 All rights reserved
, 3 | Page
Performance- Is the strategy producing good company
performance?
Competitive Advantage -Is the strategy helping achieve a
sustainable competitive advantage? Ans: The Three Tests of a
Winning Strategy
Is top management's view of "where we are going"— the firm's
direction and its future product-marketcustomer-technology focus
to stakeholders.
Is distinctive and specific to a particular organization.
Avoids use of generic, innocuous, and uninspiring language that
could apply to most any firm.
Definitively states how the company's leaders intend to position
the firm beyond where it is today. Ans: Strategic Vision
• Ideally, a company ______ ______ is sufficiently descriptive to:
Identify the company's products or services.
Specify the buyer needs it seeks to satisfy.
Specify the customer groups or markets it is endeavoring to serve.
Specify its approach to pleasing customers.
Give the company its own identity. Ans: mission statement
Profit is not "who we are and what we do.", but more like an
objective.
• ___ ______ ______ concerns a firm's future business path—"where
we are going or where do I want to take the company?"
Markets to be pursued
Future product/ market/customer/ technology focus Ans: A
strategic vision
The _____ ______ of a firm focuses on its present business
purpose—"who we are and what we do"
© 2025 All rights reserved
