MNG3701 STUDY NOTES PRACTICE
TEST QUESTIONS AND ANSWERS
2026 UPDATED VERSION VERIFIED
A+
◉ Economic value created.
Answer: Competitive advantage, Value creation/cost reduction
◉ Types of competitive advantages.
Answer: Strategic Positioning, performing different activities than
competitors or the same activities differently.
◉ Differentiation.
Answer: Focusing on value, premium offerings (whole foods)
◉ Cost leadership.
Answer: Lowest costs for competitive pricing (Walmart)
◉ Competitive scope.
Answer: Narrow/focused (differentiation) or broad cost leadership
◉ Economies of scale.
Answer: Volume of products
, ◉ Economies of scope.
Answer: Variety of products
◉ Corporate strategy.
Answer: Stages of the value chain (vertical integration), range of
products (horizontal integration/diversification), and where in the world
(globalization)
◉ Vertical integration.
Answer: Upstream and downstream industries - forward vs backward
integration
◉ Diversification strategies.
Answer: Product, geographic, product market
◉ Types of diversification.
Answer: Single business, dominant business, related constrained, related
linked, unrelated
◉ M&A.
Answer: Merger combines two companies (friendly), acquisition is a
purchase/takeover of a company by another (friendly or hostile)
◉ Strategic alliances.
TEST QUESTIONS AND ANSWERS
2026 UPDATED VERSION VERIFIED
A+
◉ Economic value created.
Answer: Competitive advantage, Value creation/cost reduction
◉ Types of competitive advantages.
Answer: Strategic Positioning, performing different activities than
competitors or the same activities differently.
◉ Differentiation.
Answer: Focusing on value, premium offerings (whole foods)
◉ Cost leadership.
Answer: Lowest costs for competitive pricing (Walmart)
◉ Competitive scope.
Answer: Narrow/focused (differentiation) or broad cost leadership
◉ Economies of scale.
Answer: Volume of products
, ◉ Economies of scope.
Answer: Variety of products
◉ Corporate strategy.
Answer: Stages of the value chain (vertical integration), range of
products (horizontal integration/diversification), and where in the world
(globalization)
◉ Vertical integration.
Answer: Upstream and downstream industries - forward vs backward
integration
◉ Diversification strategies.
Answer: Product, geographic, product market
◉ Types of diversification.
Answer: Single business, dominant business, related constrained, related
linked, unrelated
◉ M&A.
Answer: Merger combines two companies (friendly), acquisition is a
purchase/takeover of a company by another (friendly or hostile)
◉ Strategic alliances.
