Strategic Management & Business Policy: Key
Concepts and Frameworks UPDATED ACTUAL
Questions and CORRECT Answers
What is a coordinated set of actions Strategy
and commitments that allows a
company to gain a competitive
advantage?
What is the term for a strategy that Competitive Advantage
gives a company an edge over
competitors?
How long does a competitive Until competitors can duplicate it or it no longer
advantage last? creates value.
What must a company do to achieve Exploit current competitive advantages while
a competitive advantage over time? developing new ones.
What term describes an investor's Risk
doubts about the gains and losses
from an investment?
If two investments have the same The same return.
amount of risk, what can an investor
expect?
What is the first process in the Analyze the external environment and internal
strategic management process? organization.
, What are the results of a company's To formulate/select strategies.
internal and external analysis used
for?
What is a major benefit of It allows firms to identify specific customer groups
digitalization? and serve personalized needs.
What has outsourcing resulted from Economies of scale not being as effective in
in the current competitive helping firms earn above-average returns.
landscape?
What is an example of a Fast-food industry/ecommerce.
hypercompetitive market?
What do limited barriers across Global economy.
geographic borders that allow
goods, services, and ideas to move
describe?
What is a tax imposed by the Tariff.
government on imported goods
called?
What is created by an increased Economic growth.
demand for products and services?
What do only companies capable of Above-average returns.
meeting global standards typically
earn?
What term describes the risks a firm Liability of foreignness.
faces when competing outside its
domestic markets?
Concepts and Frameworks UPDATED ACTUAL
Questions and CORRECT Answers
What is a coordinated set of actions Strategy
and commitments that allows a
company to gain a competitive
advantage?
What is the term for a strategy that Competitive Advantage
gives a company an edge over
competitors?
How long does a competitive Until competitors can duplicate it or it no longer
advantage last? creates value.
What must a company do to achieve Exploit current competitive advantages while
a competitive advantage over time? developing new ones.
What term describes an investor's Risk
doubts about the gains and losses
from an investment?
If two investments have the same The same return.
amount of risk, what can an investor
expect?
What is the first process in the Analyze the external environment and internal
strategic management process? organization.
, What are the results of a company's To formulate/select strategies.
internal and external analysis used
for?
What is a major benefit of It allows firms to identify specific customer groups
digitalization? and serve personalized needs.
What has outsourcing resulted from Economies of scale not being as effective in
in the current competitive helping firms earn above-average returns.
landscape?
What is an example of a Fast-food industry/ecommerce.
hypercompetitive market?
What do limited barriers across Global economy.
geographic borders that allow
goods, services, and ideas to move
describe?
What is a tax imposed by the Tariff.
government on imported goods
called?
What is created by an increased Economic growth.
demand for products and services?
What do only companies capable of Above-average returns.
meeting global standards typically
earn?
What term describes the risks a firm Liability of foreignness.
faces when competing outside its
domestic markets?
