MGT 401 (Midterm) Exam Questions with Verified Solutions Latest Update 2025/2026
strategic management - Answers the process through which organizations:
analyze and learn from their internal and external environments
establish strategic direction
create strategies that are intended to help achieve established goals
execute those strategies, all in an effort to satisfy key organizational constituencies (i.e.,
stakeholders)
external environmental analysis - Answers involves evaluation of the broad and task
environments to determine trends, threats, and opportunities and to provide a foundation for
strategic direction
internal environmental analysis - Answers includes an evaluation of internal stakeholders and
the organization's resources and capabilities to determine:
(1) strengths and opportunities for competitive advantage
(2) weaknesses and organizational vulnerabilities that should be corrected
internal stakeholders - Answers include managers, employees and the owners and their
representatives (e.g., board of directors).
SWOT - Answers analysis is a useful technique for organizing an assessment of internal and
external environmental sources of influence
strengths - Answers firm resources and capabilities that can lead to a competitive advantage
weaknesses - Answers resources and capabilities that the firm does not possess but that are
necessary, resulting in a competitive disadvantage
opportunities - Answers conditions in the broad and task environments that allow a firm to take
advantage of organizational strengths, overcome organizational weaknesses, and/or neutralize
environmental threats
threats - Answers conditions in the broad and task environments that may stand in the way of
,organizational competitiveness or the achievement of stakeholder satisfaction
strategic leaders - Answers have a large impact on the strategies and performance of their firms
one of the most important responsibilities is to establish strategic direction
strategic direction - Answers involves setting long-term goals and objectives
defines the purposes for which an organization exists and operates
may be contained, in part, in a firm's mission and vision statements
business ethics - Answers pertain to the moral obligations of businesses to individuals, groups
(such as stakeholders) and society as a whole
values - Answers define what matters when making decisions and what is rewarded and
reinforced
strategic formulation - Answers divided into three types: corporate, business, and functional
strategy - Answers an organizational plan of action intended to accomplish goals
business strategy formulation - Answers involves domain direction and navigation or how
businesses compete in a given area
usually decided by the division heads and business unit managers
corporate strategy formulation - Answers refers primarily to domain definition or the selection
of business areas in which the organization will compete
usually decided by the CEO/ board of directors
functional strategy formulation - Answers contains the details of how the functional areas such
as marketing, operations, finance, and research should work together to achieve the business-
level strategy
decisions made by functional level managers
, strategy implementation - Answers involves creating the functional strategies, systems,
structures, and processes needed by the organization in achieving strategic ends
creating a pattern of decisions/actions intended to carry out a plan
strategic control - Answers refers to the processes that lead to adjustments in strategic
direction, strategies, or the implementation plan when necessary
strategic restructuring - Answers typically involves a renewed emphasis on the things an
organization does well, combined with a variety of tactics to revitalize the organization and
strengthen its competitive position
environmental determinism - Answers the most competitive strategy is determined by the
environment
involves adapting to environmental, technical and human forces
suggests good management is associated with determining which strategy will best fit
environmental, technical, and human forces at a particular point in time
structure-conduct-performance model - Answers the performance of an industry is dependent
on the conduct of the firms it contains, which is dependent on industry structure
research - Answers suggests industry is important to performance, but not primary determinant
enactment - Answers firms can, in part, create their environments
combination - Answers organizations typically involved in adaptation
and enactment
industrial organization economics perspective - Answers performance of an industry is
dependent on the conduct of the firms it contains, which is dependent on the structure of the
industry (referred to as the structure-conduct-performance model)
resource-based view - Answers takes the position that an organization is a bundle of resources:
financial
physical
human
strategic management - Answers the process through which organizations:
analyze and learn from their internal and external environments
establish strategic direction
create strategies that are intended to help achieve established goals
execute those strategies, all in an effort to satisfy key organizational constituencies (i.e.,
stakeholders)
external environmental analysis - Answers involves evaluation of the broad and task
environments to determine trends, threats, and opportunities and to provide a foundation for
strategic direction
internal environmental analysis - Answers includes an evaluation of internal stakeholders and
the organization's resources and capabilities to determine:
(1) strengths and opportunities for competitive advantage
(2) weaknesses and organizational vulnerabilities that should be corrected
internal stakeholders - Answers include managers, employees and the owners and their
representatives (e.g., board of directors).
SWOT - Answers analysis is a useful technique for organizing an assessment of internal and
external environmental sources of influence
strengths - Answers firm resources and capabilities that can lead to a competitive advantage
weaknesses - Answers resources and capabilities that the firm does not possess but that are
necessary, resulting in a competitive disadvantage
opportunities - Answers conditions in the broad and task environments that allow a firm to take
advantage of organizational strengths, overcome organizational weaknesses, and/or neutralize
environmental threats
threats - Answers conditions in the broad and task environments that may stand in the way of
,organizational competitiveness or the achievement of stakeholder satisfaction
strategic leaders - Answers have a large impact on the strategies and performance of their firms
one of the most important responsibilities is to establish strategic direction
strategic direction - Answers involves setting long-term goals and objectives
defines the purposes for which an organization exists and operates
may be contained, in part, in a firm's mission and vision statements
business ethics - Answers pertain to the moral obligations of businesses to individuals, groups
(such as stakeholders) and society as a whole
values - Answers define what matters when making decisions and what is rewarded and
reinforced
strategic formulation - Answers divided into three types: corporate, business, and functional
strategy - Answers an organizational plan of action intended to accomplish goals
business strategy formulation - Answers involves domain direction and navigation or how
businesses compete in a given area
usually decided by the division heads and business unit managers
corporate strategy formulation - Answers refers primarily to domain definition or the selection
of business areas in which the organization will compete
usually decided by the CEO/ board of directors
functional strategy formulation - Answers contains the details of how the functional areas such
as marketing, operations, finance, and research should work together to achieve the business-
level strategy
decisions made by functional level managers
, strategy implementation - Answers involves creating the functional strategies, systems,
structures, and processes needed by the organization in achieving strategic ends
creating a pattern of decisions/actions intended to carry out a plan
strategic control - Answers refers to the processes that lead to adjustments in strategic
direction, strategies, or the implementation plan when necessary
strategic restructuring - Answers typically involves a renewed emphasis on the things an
organization does well, combined with a variety of tactics to revitalize the organization and
strengthen its competitive position
environmental determinism - Answers the most competitive strategy is determined by the
environment
involves adapting to environmental, technical and human forces
suggests good management is associated with determining which strategy will best fit
environmental, technical, and human forces at a particular point in time
structure-conduct-performance model - Answers the performance of an industry is dependent
on the conduct of the firms it contains, which is dependent on industry structure
research - Answers suggests industry is important to performance, but not primary determinant
enactment - Answers firms can, in part, create their environments
combination - Answers organizations typically involved in adaptation
and enactment
industrial organization economics perspective - Answers performance of an industry is
dependent on the conduct of the firms it contains, which is dependent on the structure of the
industry (referred to as the structure-conduct-performance model)
resource-based view - Answers takes the position that an organization is a bundle of resources:
financial
physical
human
