MGT8803 STRATEGY STUDY GUIDE 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Strategic Planning. Answer: Long-term, broad planning driven by the
organization's mission, vision, and values, focused on achieving overall
goals and competitive advantage.
◉ Tactical Planning. Answer: Short-term, narrow planning focused on
specific activities and resource allocation to implement functional plans.
◉ Functional Planning. Answer: Strategic planning at the level of
specific departments or functions within a business unit (e.g., marketing,
finance, operations).
◉ Competitive Parity. Answer: A situation where a firm's performance
is equal to the average of its competitors.
◉ Differentiation. Answer: A competitive strategy that aims to create
unique value for customers, allowing the firm to charge a premium
price.
◉ Focus Strategy. Answer: A competitive strategy that concentrates on a
narrow market segment and pursues either a cost leadership or
differentiation strategy within that niche.
,◉ S.M.A.R.T. Goals. Answer: Goals that are Specific, Measurable,
Achievable, Relevant, and Time-bound.
◉ SWOT Analysis. Answer: A framework that combines the analysis of
a firm's internal Strengths and Weaknesses with external Opportunities
and Threats to inform strategy formulation.
◉ Residual uncertainty. Answer: The uncertainty that remains after all
feasible analysis has been conducted; the truly unknowable.
◉ Open innovation. Answer: An approach to innovation where a firm
collaborates with external partners and shares intellectual property to
accelerate development and adoption.
◉ PESTEL Analysis. Answer: Framework analyzing Political,
Economic, Socio-Cultural, Technological, Ecological, and Legal factors.
◉ How do strategic and tactical plans differ?. Answer: Strategic plans
are long-term, broad, and developed at senior levels, focusing on overall
direction.
Tactical plans are short-term, narrow, and developed at lower levels,
concentrating on specific actions to implement strategic goals.
◉ T or F: Functional plans are strategic plans that are developed within
specific departments.. Answer: True
, ◉ 3 components of a business model. Answer: (1) value delivery (how
customers are reached and served)
(2) value creation (how the product/service is made),
(3) value capture (how the firm makes money).
◉ What is the primary aim in cost leadership?. Answer: the lowest costs
in a broad market (e.g., Walmart).
◉ Differentiation vs Focus approach. Answer: When a company seeks
to offer unique value at a premium price in a broad market (e.g., Apple).
Focus targets a narrow niche with either cost leadership or
differentiation (e.g., Rolex).
◉ What type of planning works well in a stable environment?. Answer:
top-down
◉ What type of planning works well in a unstable environment?.
Answer: flexible methods like scenario planning, which develops
strategies for multiple plausible futures
◉ What are some examples of political variables in PESTEL?. Answer:
-subsidies
-favorable tax policies
-pricing controls
-regulated access
QUESTIONS WITH ANSWERS GRADED A+
◉ Strategic Planning. Answer: Long-term, broad planning driven by the
organization's mission, vision, and values, focused on achieving overall
goals and competitive advantage.
◉ Tactical Planning. Answer: Short-term, narrow planning focused on
specific activities and resource allocation to implement functional plans.
◉ Functional Planning. Answer: Strategic planning at the level of
specific departments or functions within a business unit (e.g., marketing,
finance, operations).
◉ Competitive Parity. Answer: A situation where a firm's performance
is equal to the average of its competitors.
◉ Differentiation. Answer: A competitive strategy that aims to create
unique value for customers, allowing the firm to charge a premium
price.
◉ Focus Strategy. Answer: A competitive strategy that concentrates on a
narrow market segment and pursues either a cost leadership or
differentiation strategy within that niche.
,◉ S.M.A.R.T. Goals. Answer: Goals that are Specific, Measurable,
Achievable, Relevant, and Time-bound.
◉ SWOT Analysis. Answer: A framework that combines the analysis of
a firm's internal Strengths and Weaknesses with external Opportunities
and Threats to inform strategy formulation.
◉ Residual uncertainty. Answer: The uncertainty that remains after all
feasible analysis has been conducted; the truly unknowable.
◉ Open innovation. Answer: An approach to innovation where a firm
collaborates with external partners and shares intellectual property to
accelerate development and adoption.
◉ PESTEL Analysis. Answer: Framework analyzing Political,
Economic, Socio-Cultural, Technological, Ecological, and Legal factors.
◉ How do strategic and tactical plans differ?. Answer: Strategic plans
are long-term, broad, and developed at senior levels, focusing on overall
direction.
Tactical plans are short-term, narrow, and developed at lower levels,
concentrating on specific actions to implement strategic goals.
◉ T or F: Functional plans are strategic plans that are developed within
specific departments.. Answer: True
, ◉ 3 components of a business model. Answer: (1) value delivery (how
customers are reached and served)
(2) value creation (how the product/service is made),
(3) value capture (how the firm makes money).
◉ What is the primary aim in cost leadership?. Answer: the lowest costs
in a broad market (e.g., Walmart).
◉ Differentiation vs Focus approach. Answer: When a company seeks
to offer unique value at a premium price in a broad market (e.g., Apple).
Focus targets a narrow niche with either cost leadership or
differentiation (e.g., Rolex).
◉ What type of planning works well in a stable environment?. Answer:
top-down
◉ What type of planning works well in a unstable environment?.
Answer: flexible methods like scenario planning, which develops
strategies for multiple plausible futures
◉ What are some examples of political variables in PESTEL?. Answer:
-subsidies
-favorable tax policies
-pricing controls
-regulated access
