MGT8803 - Strategy Exam (NEW UPDATED VERSION) LATEST
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ [2026]
1. What is the primary purpose of a SWOT analysis?
A. To assess financial performance
B. To identify strengths, weaknesses, opportunities, and threats
C. To evaluate employee satisfaction
D. To measure market share
Answer: B
Rationale: SWOT analysis evaluates internal and external factors affecting strategy.
2. Which of the following is a key component of corporate strategy?
A. Pricing decisions
B. Deciding which industries or markets the firm should compete in
C. Employee scheduling
D. Daily operational procedures
Answer: B
Rationale: Corporate strategy focuses on overall scope and direction of the organization.
3. What is a competitive advantage?
A. A temporary market trend
B. A firm’s unique strengths allowing it to outperform competitors
C. A type of accounting method
D. A government subsidy
Answer: B
1
Rationale: Competitive advantage allows sustained superior performance over rivals.
Page
2026 Graded A+ EXAM
, 4. The VRIO framework assesses resources based on:
A. Value, Rarity, Imitability, Organization
B. Vision, Revenue, Innovation, Operations
C. Variables, Risks, Income, Objectives
D. Valuation, Research, Implementation, Optimization
Answer: A
Rationale: VRIO determines if resources provide sustainable competitive advantage.
3 factors that effect planning of organization - CORRECT ✔✔✔✔✔ 1) organization
level (more heirarchy better with more stability)
2) degree of uncertainty (more uncertain, shorter planning horizon)
3) length of future commitments (planning horizon should be as long as length of
longest commitment by management
4 functions of management - CORRECT ✔✔✔✔✔ 1) planning: business goals
2) organizing: allocating resources
3) leading: coordinating and directing
4) controlling: observe and analyze metrics to ensure completion of task
4 types of plans - CORRECT ✔✔✔✔✔ 1) strategic: broad plans with missions and
goals
2) functional: related to areas of biz that support strategic plans
3) operational/tactical: narrow focus of specific activities
4) contingency: handles risks and what-ifs
business strategy - CORRECT ✔✔✔✔✔ Goal directed actions to achieve superior
performance and develop competitive advantage
creating competitive advantage - CORRECT ✔✔✔✔✔ 1) cost leadership: underprice
competition but retain higher profit margin
2) differentiation: charge higher premium than competitors for better value
3) focus (segmentation): market niches -- goes well with differentiation
competitive parity - CORRECT ✔✔✔✔✔ When 2 or more firms in the same industry
perform at the same level
firm's business model - CORRECT ✔✔✔✔✔ Results of prior choices processes and
relationships that are unique to the firm that help explain performance along with
2
strategy
Page
2026 Graded A+ EXAM
, components of a business model - CORRECT ✔✔✔✔✔ 1) markets service served:
selection of markets firm chooses to compete in
2) firm infrastructure: development of core competencies to create competitive
advantage
3) economic model and how revenues are generated and sources of cost
core competencies - CORRECT ✔✔✔✔✔ Unique capabilities and resources that
enable the firm to deliver and support a value proposition to its customer
activity map - CORRECT ✔✔✔✔✔ Diagnostic tool that can be used to understand
how an organization connects its value prop to the activities that enable the organization
to create a competitive advantage
- Darker circles represent foundations of the business model
- Lighter circler show how strategy is implemented through clusters of tightly linked
activities
- Useful for strengthening strategic fit and assessing source and strength of competitive
advantage
levels of strategy - CORRECT ✔✔✔✔✔ 1) corporate level strategy: what businesses
company will vest in and what they will do + sets grand strategies
2) business unit level strategy: competitive strategy is developed (small firm -- biz and
corp function as one // large firm -- each of biz units develop their own buisness unit
level strategy)
3) functional level strategy: activities of different functional areas to help achieve overall
biz strategy
grand strategies (business strategies) - CORRECT ✔✔✔✔✔ 1) growth strategy:
organization attempts to increase level of its operations to increase revenue and
profitability
2) stability strategy: absence of significant change -- maintaining market share (small
firm -- reduces risk and defends position // large firm -- use in comb of other strategies
while pursuing expansion for others)
3) renewal strategy: defensive strategy -- reducing in size or seeking stability
(retrenchment: short run strategy for minor performance problems // turnaround: for
more serious issues like bankruptcy)
4 ways firms grow - CORRECT ✔✔✔✔✔ 1) concentration: focusing on core business
and increasing volume of products offered or number of markets served
2) diversification: growth via different industry -- determined at corp level
3) vertical integration: growing by gaining control of either firm inputs or outputs
4) horizontal integration: growing by combining with a competitor
AFI framework - CORRECT ✔✔✔✔✔ 1) analysis: vision, mission, values, external
3
and interal analysis
Page
2) formulation: corporate, business, and functional strategy
2026 Graded A+ EXAM
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND ANSWERS) | GUARANTEED PASS A+ [2026]
1. What is the primary purpose of a SWOT analysis?
A. To assess financial performance
B. To identify strengths, weaknesses, opportunities, and threats
C. To evaluate employee satisfaction
D. To measure market share
Answer: B
Rationale: SWOT analysis evaluates internal and external factors affecting strategy.
2. Which of the following is a key component of corporate strategy?
A. Pricing decisions
B. Deciding which industries or markets the firm should compete in
C. Employee scheduling
D. Daily operational procedures
Answer: B
Rationale: Corporate strategy focuses on overall scope and direction of the organization.
3. What is a competitive advantage?
A. A temporary market trend
B. A firm’s unique strengths allowing it to outperform competitors
C. A type of accounting method
D. A government subsidy
Answer: B
1
Rationale: Competitive advantage allows sustained superior performance over rivals.
Page
2026 Graded A+ EXAM
, 4. The VRIO framework assesses resources based on:
A. Value, Rarity, Imitability, Organization
B. Vision, Revenue, Innovation, Operations
C. Variables, Risks, Income, Objectives
D. Valuation, Research, Implementation, Optimization
Answer: A
Rationale: VRIO determines if resources provide sustainable competitive advantage.
3 factors that effect planning of organization - CORRECT ✔✔✔✔✔ 1) organization
level (more heirarchy better with more stability)
2) degree of uncertainty (more uncertain, shorter planning horizon)
3) length of future commitments (planning horizon should be as long as length of
longest commitment by management
4 functions of management - CORRECT ✔✔✔✔✔ 1) planning: business goals
2) organizing: allocating resources
3) leading: coordinating and directing
4) controlling: observe and analyze metrics to ensure completion of task
4 types of plans - CORRECT ✔✔✔✔✔ 1) strategic: broad plans with missions and
goals
2) functional: related to areas of biz that support strategic plans
3) operational/tactical: narrow focus of specific activities
4) contingency: handles risks and what-ifs
business strategy - CORRECT ✔✔✔✔✔ Goal directed actions to achieve superior
performance and develop competitive advantage
creating competitive advantage - CORRECT ✔✔✔✔✔ 1) cost leadership: underprice
competition but retain higher profit margin
2) differentiation: charge higher premium than competitors for better value
3) focus (segmentation): market niches -- goes well with differentiation
competitive parity - CORRECT ✔✔✔✔✔ When 2 or more firms in the same industry
perform at the same level
firm's business model - CORRECT ✔✔✔✔✔ Results of prior choices processes and
relationships that are unique to the firm that help explain performance along with
2
strategy
Page
2026 Graded A+ EXAM
, components of a business model - CORRECT ✔✔✔✔✔ 1) markets service served:
selection of markets firm chooses to compete in
2) firm infrastructure: development of core competencies to create competitive
advantage
3) economic model and how revenues are generated and sources of cost
core competencies - CORRECT ✔✔✔✔✔ Unique capabilities and resources that
enable the firm to deliver and support a value proposition to its customer
activity map - CORRECT ✔✔✔✔✔ Diagnostic tool that can be used to understand
how an organization connects its value prop to the activities that enable the organization
to create a competitive advantage
- Darker circles represent foundations of the business model
- Lighter circler show how strategy is implemented through clusters of tightly linked
activities
- Useful for strengthening strategic fit and assessing source and strength of competitive
advantage
levels of strategy - CORRECT ✔✔✔✔✔ 1) corporate level strategy: what businesses
company will vest in and what they will do + sets grand strategies
2) business unit level strategy: competitive strategy is developed (small firm -- biz and
corp function as one // large firm -- each of biz units develop their own buisness unit
level strategy)
3) functional level strategy: activities of different functional areas to help achieve overall
biz strategy
grand strategies (business strategies) - CORRECT ✔✔✔✔✔ 1) growth strategy:
organization attempts to increase level of its operations to increase revenue and
profitability
2) stability strategy: absence of significant change -- maintaining market share (small
firm -- reduces risk and defends position // large firm -- use in comb of other strategies
while pursuing expansion for others)
3) renewal strategy: defensive strategy -- reducing in size or seeking stability
(retrenchment: short run strategy for minor performance problems // turnaround: for
more serious issues like bankruptcy)
4 ways firms grow - CORRECT ✔✔✔✔✔ 1) concentration: focusing on core business
and increasing volume of products offered or number of markets served
2) diversification: growth via different industry -- determined at corp level
3) vertical integration: growing by gaining control of either firm inputs or outputs
4) horizontal integration: growing by combining with a competitor
AFI framework - CORRECT ✔✔✔✔✔ 1) analysis: vision, mission, values, external
3
and interal analysis
Page
2) formulation: corporate, business, and functional strategy
2026 Graded A+ EXAM
