BUS5117 Strategic Management Units 1-4 Test Bank — Strategy
Foundations, External Analysis, Internal Analysis, and Business-
Level Strategy
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5117 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Strategic management is best described as a continuous process that involves which of the
following core activities?
A) Maximizing short-term shareholder value at the expense of long-term investments.
B) Analysis, decisions, and actions an organization undertakes to create and sustain competitive
advantages.
C) Focusing exclusively on operational efficiency to reduce overhead costs.
D) Relying solely on the intuition of top executives to dictate market positioning.
Answer: B
Explanation:
Strategic management involves the ongoing analysis of the internal and external environments,
making strategic decisions, and implementing actions to achieve and maintain a competitive
advantage. It requires a holistic and long-term perspective rather than focusing solely on short-
term gains or operational tasks.
,Question 2 — Unit 1:
A software company decides to transition from a single-product offering to a comprehensive
cloud-based ecosystem. This fundamental shift in the company's overarching direction represents
which level of strategy?
A) Functional-level strategy
B) Operational-level strategy
C) Business-level strategy
D) Corporate-level strategy
Answer: D
Explanation:
Corporate-level strategy determines the overall scope and direction of the corporation as a whole,
including the industries and markets in which it competes. Shifting from a single product to a
broader ecosystem involves fundamental decisions about the portfolio of businesses.
Question 3 — Unit 1:
Which of the following best differentiates a firm's "vision" from its "mission"?
A) A vision outlines the specific financial goals for the next fiscal year, while a mission provides a
vague, long-term aspiration.
B) A vision states the company's current core operations, while a mission defines what the
company wants to become in the future.
C) A vision describes the desired future state and overarching aspirations, while a mission details
the current business purpose and operations.
D) A vision is designed strictly for internal employees, while a mission is created exclusively for
external stakeholders.
Answer: C
Explanation:
A vision statement is forward-looking and inspirational, describing what the organization hopes to
achieve in the long run. A mission statement is grounded in the present, defining the
organization's core purpose, who it serves, and what it does today.
Question 4 — Unit 1:
According to the concept of stakeholder management, how should a corporation prioritize the
interests of its various constituents?
, A) It should focus exclusively on maximizing financial returns for shareholders.
B) It should recognize and balance the diverse and sometimes conflicting claims of multiple
stakeholders, including employees, customers, and the community.
C) It should prioritize the demands of the most vocal external activist groups to avoid negative
public relations.
D) It should prioritize employee satisfaction above all else, assuming this will naturally lead to
shareholder value.
Answer: B
Explanation:
Stakeholder management theory suggests that a firm must simultaneously address the needs of
various groups that have a stake in its success, such as shareholders, employees, customers,
suppliers, and the broader community, to achieve long-term sustainable performance.
Question 5 — Unit 1:
Scenario: TechNova Inc. recently experienced a significant loss of market share because it failed
to anticipate a shift in consumer preference toward mobile-first platforms. The leadership team
had been overly focused on refining their existing desktop software. TechNova suffered from:
A) Strategic flexibility
B) Strategic intent
C) Strategic myopia
D) Strategic entrepreneurship
Answer: C
Explanation:
Strategic myopia (or short-sightedness) occurs when management focuses too heavily on their
current operations and immediate competitive environment, failing to recognize and adapt to
broader, long-term shifts in the industry or market.
Question 6 — Unit 1:
Intended strategies often differ from realized strategies. According to Henry Mintzberg, the portion
of the intended strategy that remains unrealized is referred to as:
A) Emergent strategy
B) Deliberate strategy
C) Unrealized strategy
Foundations, External Analysis, Internal Analysis, and Business-
Level Strategy
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5117 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Strategic management is best described as a continuous process that involves which of the
following core activities?
A) Maximizing short-term shareholder value at the expense of long-term investments.
B) Analysis, decisions, and actions an organization undertakes to create and sustain competitive
advantages.
C) Focusing exclusively on operational efficiency to reduce overhead costs.
D) Relying solely on the intuition of top executives to dictate market positioning.
Answer: B
Explanation:
Strategic management involves the ongoing analysis of the internal and external environments,
making strategic decisions, and implementing actions to achieve and maintain a competitive
advantage. It requires a holistic and long-term perspective rather than focusing solely on short-
term gains or operational tasks.
,Question 2 — Unit 1:
A software company decides to transition from a single-product offering to a comprehensive
cloud-based ecosystem. This fundamental shift in the company's overarching direction represents
which level of strategy?
A) Functional-level strategy
B) Operational-level strategy
C) Business-level strategy
D) Corporate-level strategy
Answer: D
Explanation:
Corporate-level strategy determines the overall scope and direction of the corporation as a whole,
including the industries and markets in which it competes. Shifting from a single product to a
broader ecosystem involves fundamental decisions about the portfolio of businesses.
Question 3 — Unit 1:
Which of the following best differentiates a firm's "vision" from its "mission"?
A) A vision outlines the specific financial goals for the next fiscal year, while a mission provides a
vague, long-term aspiration.
B) A vision states the company's current core operations, while a mission defines what the
company wants to become in the future.
C) A vision describes the desired future state and overarching aspirations, while a mission details
the current business purpose and operations.
D) A vision is designed strictly for internal employees, while a mission is created exclusively for
external stakeholders.
Answer: C
Explanation:
A vision statement is forward-looking and inspirational, describing what the organization hopes to
achieve in the long run. A mission statement is grounded in the present, defining the
organization's core purpose, who it serves, and what it does today.
Question 4 — Unit 1:
According to the concept of stakeholder management, how should a corporation prioritize the
interests of its various constituents?
, A) It should focus exclusively on maximizing financial returns for shareholders.
B) It should recognize and balance the diverse and sometimes conflicting claims of multiple
stakeholders, including employees, customers, and the community.
C) It should prioritize the demands of the most vocal external activist groups to avoid negative
public relations.
D) It should prioritize employee satisfaction above all else, assuming this will naturally lead to
shareholder value.
Answer: B
Explanation:
Stakeholder management theory suggests that a firm must simultaneously address the needs of
various groups that have a stake in its success, such as shareholders, employees, customers,
suppliers, and the broader community, to achieve long-term sustainable performance.
Question 5 — Unit 1:
Scenario: TechNova Inc. recently experienced a significant loss of market share because it failed
to anticipate a shift in consumer preference toward mobile-first platforms. The leadership team
had been overly focused on refining their existing desktop software. TechNova suffered from:
A) Strategic flexibility
B) Strategic intent
C) Strategic myopia
D) Strategic entrepreneurship
Answer: C
Explanation:
Strategic myopia (or short-sightedness) occurs when management focuses too heavily on their
current operations and immediate competitive environment, failing to recognize and adapt to
broader, long-term shifts in the industry or market.
Question 6 — Unit 1:
Intended strategies often differ from realized strategies. According to Henry Mintzberg, the portion
of the intended strategy that remains unrealized is referred to as:
A) Emergent strategy
B) Deliberate strategy
C) Unrealized strategy
