MBA 620 PRACTICE TEST 2026 QUESTIONS
WITH CORRECT ANSWERS
◉ purpose and goal of strategy. Answer: create a competitive
advantage, determines where to engage with the competition and
choice of business model
Goal: superior performance, substantial positive return, above
average profitability, above average return on equity
◉ Five Stages of the Strategic Management Process. Answer:
Analysis - understand unique competitive strengths, how to create
value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure,
employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
◉ Five Questions to Define strategy. Answer: Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
,◉ Competitive Advantage. Answer: specialized approach to create
value to meet market expectations
◉ Strategic Decision Making. Answer: non-routine, affect entire
organizational functions, commitment of resources needed, difficult
to reverse, making a clear choice among alternatives, easily
identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
◉ External Analysis. Answer: industries and competitors, how it is
evolving, growing and the importance
◉ Internal Analysis. Answer: value chain and competitive advantage
◉ Resource Based Analysis. Answer: Sustainable competitive
advantage
◉ Strategy vs Tactics. Answer: Strategy - long term plan, affects
entire company, difficult to change, fundamental to everything you
do
, Tactics - how to get there, day to day activities
◉ how does strategy change over time. Answer: Technology, big
data, rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
◉ how is strategy effectiveness measured. Answer: Financial
performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
◉ SWOT Analysis. Answer: Strenghth
Weakness
Opportunity
Threat
◉ Porters Five Forces - Industry Analysis. Answer: Evaluates
structural factors focusing on how they influence industry
profitability
WITH CORRECT ANSWERS
◉ purpose and goal of strategy. Answer: create a competitive
advantage, determines where to engage with the competition and
choice of business model
Goal: superior performance, substantial positive return, above
average profitability, above average return on equity
◉ Five Stages of the Strategic Management Process. Answer:
Analysis - understand unique competitive strengths, how to create
value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure,
employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
◉ Five Questions to Define strategy. Answer: Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
,◉ Competitive Advantage. Answer: specialized approach to create
value to meet market expectations
◉ Strategic Decision Making. Answer: non-routine, affect entire
organizational functions, commitment of resources needed, difficult
to reverse, making a clear choice among alternatives, easily
identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
◉ External Analysis. Answer: industries and competitors, how it is
evolving, growing and the importance
◉ Internal Analysis. Answer: value chain and competitive advantage
◉ Resource Based Analysis. Answer: Sustainable competitive
advantage
◉ Strategy vs Tactics. Answer: Strategy - long term plan, affects
entire company, difficult to change, fundamental to everything you
do
, Tactics - how to get there, day to day activities
◉ how does strategy change over time. Answer: Technology, big
data, rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
◉ how is strategy effectiveness measured. Answer: Financial
performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
◉ SWOT Analysis. Answer: Strenghth
Weakness
Opportunity
Threat
◉ Porters Five Forces - Industry Analysis. Answer: Evaluates
structural factors focusing on how they influence industry
profitability
