JMU COB 487 (Strategic Management) Exam 1 - CK
LEE Test 2026 Guide
1. Strategy The set of goal-directed actions a firm takes to gain and sustain (competitive
advantage) for achieving superior performance relative to competitors.
2. Question That Why do some firms perform better than others?
Drives Strategy - Michael Porter
3. Competitive Ad- Superior performance relative to other competitors in the same industry or the
vantage industry average.
4. Sustainable Com- Outperforming competitors or the industry average over a prolonged period of
petitive Advan- time.
tage
5. Competitive Pari- Performance of two or more firms at the same level.
ty
6. Competitive Dis- Underperformance relative to other competitors in the same industry or the
advantage industry average.
7. Strategic Posi- A unique position within an industry that allows the firm to provide value to
tioning customers, while controlling costs.
8. What does Trade-otts (Price and Quality)
Strategic Posi-
tioning require?
9. Who are Strate- Top Management and C-Suite People
gic Leaders?
10. Strategic Leader- Executives' use of power and influence to direct assets in the pursuit of an
ship organization's goals.
11.
, JMU COB 487 (Strategic Management) Exam 1 - CK
LEE Test 2026 Guide
What are the two Formal Authority - power that stems from a person's position and is not very
types of authori- motivational.
ty? Informal Authority - power of persuasion that inspires and motivates employees.
12. Upper Echelon organizational outcomes (strategic choices and performance levels) reflect the
Theory values of the top management team.
13. Levels of the Level 1 - Makes productive contributions through motivation, talent, and skills.
Level 5 Pyramid Level 2 - Uses high level of individual capability to work ettectively with others to
Framework achieve team objectives.
Level 3 - Eflcient and ettective in organizing resources to accomplish strategic
goals and objectives.
Level 4 - Presents compelling vision and mission to guide groups toward superior
performance.
Level 5 - Builds enduring greatness through a combination of willpower and
humility.
14. What are the 1. Corporate Strategy
three areas of 2. Business Strategy
strategy formula- 3. Functional Strategy
tion and imple-
mentation?
15. What is Corpo- Strategy that determines where to compete (industry, markets, geographically,
rate Strategy? etc.)
16. What is Business Strategy that determines how to compete (cost leadership, ditterentiation, etc.)
Strategy? Business Strategy occurs in the SBU level.
17. What is Function- Strategy that determines how to implement the Business Strategy achieve the
al Strategy desired outcomes from the daily operations of specific departments (or functions)
of your business.
, JMU COB 487 (Strategic Management) Exam 1 - CK
LEE Test 2026 Guide
18. What are Strate- SBU's are standalone divisions of a conglomerate that have their own profit and
gic Business loss responsibilities.
Units?
19. Strategic Man- combines analysis, formulation, and implementation in the quest for competitive
agement advantage
20. Is strategy the NO
steps your orga-
nization wants to
take?
21. What questions Where do we compete?
does strategy What unique value do we bring?
provides clear What resources do we utilize?
answers? How do we sustain unique value?
22. What three ele- A diagnose of the competitive challenge, a guiding policy to address the compet-
ments is a good itive challenge, and a sent of coherent actions to implement the firm's guiding
strategy based policy.
on?
23. how do you diag- Analysis of the firm's internal and external environments
nose the compet-
itive challenge?
24. What does a Results in corporate, business and functional strategy
guiding policy re-
sult in?
25. competitive ad- Superior performance relative to other competitors in the same industry or the
vantage industry average
26. relative, absolute
LEE Test 2026 Guide
1. Strategy The set of goal-directed actions a firm takes to gain and sustain (competitive
advantage) for achieving superior performance relative to competitors.
2. Question That Why do some firms perform better than others?
Drives Strategy - Michael Porter
3. Competitive Ad- Superior performance relative to other competitors in the same industry or the
vantage industry average.
4. Sustainable Com- Outperforming competitors or the industry average over a prolonged period of
petitive Advan- time.
tage
5. Competitive Pari- Performance of two or more firms at the same level.
ty
6. Competitive Dis- Underperformance relative to other competitors in the same industry or the
advantage industry average.
7. Strategic Posi- A unique position within an industry that allows the firm to provide value to
tioning customers, while controlling costs.
8. What does Trade-otts (Price and Quality)
Strategic Posi-
tioning require?
9. Who are Strate- Top Management and C-Suite People
gic Leaders?
10. Strategic Leader- Executives' use of power and influence to direct assets in the pursuit of an
ship organization's goals.
11.
, JMU COB 487 (Strategic Management) Exam 1 - CK
LEE Test 2026 Guide
What are the two Formal Authority - power that stems from a person's position and is not very
types of authori- motivational.
ty? Informal Authority - power of persuasion that inspires and motivates employees.
12. Upper Echelon organizational outcomes (strategic choices and performance levels) reflect the
Theory values of the top management team.
13. Levels of the Level 1 - Makes productive contributions through motivation, talent, and skills.
Level 5 Pyramid Level 2 - Uses high level of individual capability to work ettectively with others to
Framework achieve team objectives.
Level 3 - Eflcient and ettective in organizing resources to accomplish strategic
goals and objectives.
Level 4 - Presents compelling vision and mission to guide groups toward superior
performance.
Level 5 - Builds enduring greatness through a combination of willpower and
humility.
14. What are the 1. Corporate Strategy
three areas of 2. Business Strategy
strategy formula- 3. Functional Strategy
tion and imple-
mentation?
15. What is Corpo- Strategy that determines where to compete (industry, markets, geographically,
rate Strategy? etc.)
16. What is Business Strategy that determines how to compete (cost leadership, ditterentiation, etc.)
Strategy? Business Strategy occurs in the SBU level.
17. What is Function- Strategy that determines how to implement the Business Strategy achieve the
al Strategy desired outcomes from the daily operations of specific departments (or functions)
of your business.
, JMU COB 487 (Strategic Management) Exam 1 - CK
LEE Test 2026 Guide
18. What are Strate- SBU's are standalone divisions of a conglomerate that have their own profit and
gic Business loss responsibilities.
Units?
19. Strategic Man- combines analysis, formulation, and implementation in the quest for competitive
agement advantage
20. Is strategy the NO
steps your orga-
nization wants to
take?
21. What questions Where do we compete?
does strategy What unique value do we bring?
provides clear What resources do we utilize?
answers? How do we sustain unique value?
22. What three ele- A diagnose of the competitive challenge, a guiding policy to address the compet-
ments is a good itive challenge, and a sent of coherent actions to implement the firm's guiding
strategy based policy.
on?
23. how do you diag- Analysis of the firm's internal and external environments
nose the compet-
itive challenge?
24. What does a Results in corporate, business and functional strategy
guiding policy re-
sult in?
25. competitive ad- Superior performance relative to other competitors in the same industry or the
vantage industry average
26. relative, absolute
