1 | Page
Strategic Mgmt Exam Questions With
Revised Correct Answers
A company's business model Ans: is management's storyline for
how it will generate revenues ample to cover costs and produce a
profit—absent the ability to deliver good profitability, the strategy
is not viable and the survival of the business is in doubt.
Which one of the following does not account for why a company's
strategy evolves from one version to another? Ans: A desire on the
part of company managers to develop new strategy elements on
the fly
The difference between a company's strategy and a company's
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 revenues and costs flowing from the
strategy demonstrate that the business is viable from the
standpoint of being able to earn satisfactory profits and returns
on investment.
Which of the following statements about a company's strategy is
true? Ans: A company's strategy is typically a blend of proactive
and reactive strategy elements.
Crafting and executing strategy are top-priority managerial tasks
because Ans: good strategy coupled with good strategy execution
greatly raises the chances that a company will be a standout
performer in the marketplace.
In crafting a strategy, management is in effect saying Ans: "among
all the many different business approaches and ways of competing
we could have chosen, we have decided to employ this particular
combination of competitive and operating approaches in moving
the company in the intended direction, strengthening its market
position and competitiveness, and boosting performance."
© 2025 All rights reserved
, 2 | Page
One of the keys to successful strategy-making is Ans: to come up
with one or more strategy elements that act as a magnet to draw
customers and yield a lasting competitive edge.
It is 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 adaptive reactions to unanticipated
developments and fresh market conditions.
A winning strategy is one that Ans: fits the company's internal and
external situation, builds sustainable competitive advantage, and
improves company performance.
In crafting a company's strategy, Ans: managers need to come up
with some distinctive "aha" element to the strategy that draws in
customers and produces a competitive edge over rivals.
A company's overall strategy Ans: is really a collection of strategic
initiatives and actions devised by managers and key employees up
and down the whole organizational hierarchy.
A set of "stretch" financial and strategic objectives Ans: is an
effective tool for avoiding ho-hum results.
One of the important benefits of a well-conceived and well-stated
strategic vision is to Ans: clearly communicate management's
aspirations for the company to stakeholders and help steer the
energies of company personnel in a common direction.
Management is obligated to monitor new external developments,
evaluate the company's progress, and make corrective adjustments
in order to Ans: decide whether to continue or change the
company's strategic vision, objectives, strategy and/or strategy
execution methods.
A company's strategic plan consists of Ans: a company's strategic
vision, strategic objectives, strategic intent, and strategy.
The difference between a company's mission statement and the
concept of a strategic vision is that Ans: a mission statement
typically concerns a company's present business scope and
purpose whereas a strategic vision sets forth "where we are going
and why."
© 2025 All rights reserved
Strategic Mgmt Exam Questions With
Revised Correct Answers
A company's business model Ans: is management's storyline for
how it will generate revenues ample to cover costs and produce a
profit—absent the ability to deliver good profitability, the strategy
is not viable and the survival of the business is in doubt.
Which one of the following does not account for why a company's
strategy evolves from one version to another? Ans: A desire on the
part of company managers to develop new strategy elements on
the fly
The difference between a company's strategy and a company's
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 revenues and costs flowing from the
strategy demonstrate that the business is viable from the
standpoint of being able to earn satisfactory profits and returns
on investment.
Which of the following statements about a company's strategy is
true? Ans: A company's strategy is typically a blend of proactive
and reactive strategy elements.
Crafting and executing strategy are top-priority managerial tasks
because Ans: good strategy coupled with good strategy execution
greatly raises the chances that a company will be a standout
performer in the marketplace.
In crafting a strategy, management is in effect saying Ans: "among
all the many different business approaches and ways of competing
we could have chosen, we have decided to employ this particular
combination of competitive and operating approaches in moving
the company in the intended direction, strengthening its market
position and competitiveness, and boosting performance."
© 2025 All rights reserved
, 2 | Page
One of the keys to successful strategy-making is Ans: to come up
with one or more strategy elements that act as a magnet to draw
customers and yield a lasting competitive edge.
It is 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 adaptive reactions to unanticipated
developments and fresh market conditions.
A winning strategy is one that Ans: fits the company's internal and
external situation, builds sustainable competitive advantage, and
improves company performance.
In crafting a company's strategy, Ans: managers need to come up
with some distinctive "aha" element to the strategy that draws in
customers and produces a competitive edge over rivals.
A company's overall strategy Ans: is really a collection of strategic
initiatives and actions devised by managers and key employees up
and down the whole organizational hierarchy.
A set of "stretch" financial and strategic objectives Ans: is an
effective tool for avoiding ho-hum results.
One of the important benefits of a well-conceived and well-stated
strategic vision is to Ans: clearly communicate management's
aspirations for the company to stakeholders and help steer the
energies of company personnel in a common direction.
Management is obligated to monitor new external developments,
evaluate the company's progress, and make corrective adjustments
in order to Ans: decide whether to continue or change the
company's strategic vision, objectives, strategy and/or strategy
execution methods.
A company's strategic plan consists of Ans: a company's strategic
vision, strategic objectives, strategic intent, and strategy.
The difference between a company's mission statement and the
concept of a strategic vision is that Ans: a mission statement
typically concerns a company's present business scope and
purpose whereas a strategic vision sets forth "where we are going
and why."
© 2025 All rights reserved
