MAN 4720 CORE 2026 EXAM SET QUESTIONS AND
ANSWERS RATED A+
✔✔PGG Mining is making a strategic decision whether to shut down a coal mine in
Pennsylvania. It is important to consider that the decision: - ✔✔has ethical implications
for organizational stakeholders.
✔✔A large corporation has earned a reputation for being a challenging work
environment for employees, placing demands on employees' time and pushing them to
accomplish tasks, sometimes with little recognition. A recent audit found that the
company was denying employees overtime pay despite the extra work. This is a
reflection of the company's: - ✔✔unethical organizational culture.
✔✔In smaller, new venture firms, returns are sometimes measured in terms of: - ✔✔the
amount and speed of growth.
✔✔A __________ is an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage. - ✔✔strategy
✔✔__________ is an investor's uncertainty about the economic gains or losses that will
result from a particular investment. - ✔✔Risk
✔✔The culmination of the strategic management process is: - ✔✔performance.
✔✔Managers must adopt a new mind-set that values __________ and the challenges
that evolve from constantly changing conditions. - ✔✔All of these are correct.
✔✔__________ innovation is a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones. - ✔✔Perpetual
✔✔__________ provides the firm with new and up-to-date skill sets, which allow it to
adapt to its environment as it encounters changes. - ✔✔Continuous learning
✔✔The industrial organization (I/O) model is grounded in: - ✔✔economics.
✔✔Firms use both the __________ and __________ models. In fact, these models
complement each other in that one focuses outside the firm while the other focuses
inside the firm. - ✔✔industrial organization (I/O); resource-based
✔✔Which of the following statements about a vision and mission is true? - ✔✔A vision
statement should be clearly tied to the conditions in the firm's external environment and
internal organization.
,✔✔William Ackman is a hedge fund manager who owned a large share of J.C. Penney
stock. He was also a member of the J.C. Penney board. He tried to get the CEO fired,
but the board and top management said he breached his boardroom duties when he
publicly disclosed information about the CEO search and financial condition of the
company. He resigned from the board of directors. This is an example of a contentious
relationship between: - ✔✔the capital market stakeholders and the organizational
stakeholders.
✔✔Strategic leaders are: - ✔✔located in different areas and levels.
✔✔Successful strategic leaders are: - ✔✔All of these are correct.
✔✔Delegation helps: - ✔✔to avoid too much managerial hubris at the top.
✔✔Organizational culture refers to: - ✔✔the complex set of ideologies, symbols, and
core values that are shared throughout the firm.
✔✔Effective strategic leaders are chosen on the basis of their: - ✔✔capabilities and
accumulation of human capital and skills over time.
✔✔Strategic leaders, __________, often work long hours, and their work is filled with
ambiguous decision situations. - ✔✔regardless of their location in the organization
✔✔SWOT stands for: - ✔✔strengths, weaknesses, opportunities, and threats.
✔✔In the strategic management process ASP stands for: - ✔✔analyses, strategies, and
performance.
✔✔The firm's __________ provide the foundation for choosing one or more
__________ and deciding which one(s) to implement. - ✔✔analyses; strategies
✔✔It is important to emphasize that primarily because they are related to how a firm
interacts with its stakeholders, almost all strategic management process decisions have
__________ dimensions. - ✔✔ethical
✔✔A company competing in a single product market has: - ✔✔one business-level
strategy and one corporate-level strategy.
✔✔BP, in response to the Deepwater Horizon oil spill, expected increased scrutiny from
which of the following segments of the general environment? - ✔✔political/legal
, ✔✔Coca-Cola and PepsiCo have been accused of contributing to the obesity problem
in the United States. This accusation comes from the ______segment of the general
environment. - ✔✔sociocultural
✔✔The recent joint ventures formed by BP with Russian and Indian partners show the
importance of the ______ segment of the general environment in those countries that
BP and other oil firms have to manage when contending with scarce resources. -
✔✔global
✔✔Acme Valves, Inc., has been a successful player in the oil field supply industry in the
last 15 years. Acme maintained its strategy and product characteristics over this time
period. However, the company has experienced declines in sales and profits over the
last four quarters. The CEO of Acme should - ✔✔conduct an analysis of the external
environment.
✔✔The three parts of the external environment that affect a firm's strategic actions are:
- ✔✔general, industry, and competitor.
✔✔The ______ environment is composed of dimensions in the broader society that can
influence an industry and the firms within it. - ✔✔general
✔✔The environmental segments that make up the general environment typically will
NOT include: - ✔✔substitute products or services.
✔✔Aardvark Corp. has three products. Two products together make up two-thirds of
revenues and constitute 50 percent of company profits. Aardvark's third product makes
up one-third of sales. With profitability far above the industry average, this product is
responsible for one-half of Aardvark's profits. Which of the following statements
regarding assessment of the general environment is accurate for Aardvark? - ✔✔The
company should monitor the general environment for changes that might affect the
revenue and profitability of all products.
✔✔Which of the following is NOT an activity used in the external environmental analysis
process? - ✔✔Decrypting
✔✔Environmental scanning would be most important for which of the following
organizations? - ✔✔A web design company catering to small businesses
✔✔The use of the Internet by Netflix to collect data on customer preferences is an
example of: - ✔✔scanning.
ANSWERS RATED A+
✔✔PGG Mining is making a strategic decision whether to shut down a coal mine in
Pennsylvania. It is important to consider that the decision: - ✔✔has ethical implications
for organizational stakeholders.
✔✔A large corporation has earned a reputation for being a challenging work
environment for employees, placing demands on employees' time and pushing them to
accomplish tasks, sometimes with little recognition. A recent audit found that the
company was denying employees overtime pay despite the extra work. This is a
reflection of the company's: - ✔✔unethical organizational culture.
✔✔In smaller, new venture firms, returns are sometimes measured in terms of: - ✔✔the
amount and speed of growth.
✔✔A __________ is an integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive advantage. - ✔✔strategy
✔✔__________ is an investor's uncertainty about the economic gains or losses that will
result from a particular investment. - ✔✔Risk
✔✔The culmination of the strategic management process is: - ✔✔performance.
✔✔Managers must adopt a new mind-set that values __________ and the challenges
that evolve from constantly changing conditions. - ✔✔All of these are correct.
✔✔__________ innovation is a term used to describe how rapidly and consistently new,
information-intensive technologies replace older ones. - ✔✔Perpetual
✔✔__________ provides the firm with new and up-to-date skill sets, which allow it to
adapt to its environment as it encounters changes. - ✔✔Continuous learning
✔✔The industrial organization (I/O) model is grounded in: - ✔✔economics.
✔✔Firms use both the __________ and __________ models. In fact, these models
complement each other in that one focuses outside the firm while the other focuses
inside the firm. - ✔✔industrial organization (I/O); resource-based
✔✔Which of the following statements about a vision and mission is true? - ✔✔A vision
statement should be clearly tied to the conditions in the firm's external environment and
internal organization.
,✔✔William Ackman is a hedge fund manager who owned a large share of J.C. Penney
stock. He was also a member of the J.C. Penney board. He tried to get the CEO fired,
but the board and top management said he breached his boardroom duties when he
publicly disclosed information about the CEO search and financial condition of the
company. He resigned from the board of directors. This is an example of a contentious
relationship between: - ✔✔the capital market stakeholders and the organizational
stakeholders.
✔✔Strategic leaders are: - ✔✔located in different areas and levels.
✔✔Successful strategic leaders are: - ✔✔All of these are correct.
✔✔Delegation helps: - ✔✔to avoid too much managerial hubris at the top.
✔✔Organizational culture refers to: - ✔✔the complex set of ideologies, symbols, and
core values that are shared throughout the firm.
✔✔Effective strategic leaders are chosen on the basis of their: - ✔✔capabilities and
accumulation of human capital and skills over time.
✔✔Strategic leaders, __________, often work long hours, and their work is filled with
ambiguous decision situations. - ✔✔regardless of their location in the organization
✔✔SWOT stands for: - ✔✔strengths, weaknesses, opportunities, and threats.
✔✔In the strategic management process ASP stands for: - ✔✔analyses, strategies, and
performance.
✔✔The firm's __________ provide the foundation for choosing one or more
__________ and deciding which one(s) to implement. - ✔✔analyses; strategies
✔✔It is important to emphasize that primarily because they are related to how a firm
interacts with its stakeholders, almost all strategic management process decisions have
__________ dimensions. - ✔✔ethical
✔✔A company competing in a single product market has: - ✔✔one business-level
strategy and one corporate-level strategy.
✔✔BP, in response to the Deepwater Horizon oil spill, expected increased scrutiny from
which of the following segments of the general environment? - ✔✔political/legal
, ✔✔Coca-Cola and PepsiCo have been accused of contributing to the obesity problem
in the United States. This accusation comes from the ______segment of the general
environment. - ✔✔sociocultural
✔✔The recent joint ventures formed by BP with Russian and Indian partners show the
importance of the ______ segment of the general environment in those countries that
BP and other oil firms have to manage when contending with scarce resources. -
✔✔global
✔✔Acme Valves, Inc., has been a successful player in the oil field supply industry in the
last 15 years. Acme maintained its strategy and product characteristics over this time
period. However, the company has experienced declines in sales and profits over the
last four quarters. The CEO of Acme should - ✔✔conduct an analysis of the external
environment.
✔✔The three parts of the external environment that affect a firm's strategic actions are:
- ✔✔general, industry, and competitor.
✔✔The ______ environment is composed of dimensions in the broader society that can
influence an industry and the firms within it. - ✔✔general
✔✔The environmental segments that make up the general environment typically will
NOT include: - ✔✔substitute products or services.
✔✔Aardvark Corp. has three products. Two products together make up two-thirds of
revenues and constitute 50 percent of company profits. Aardvark's third product makes
up one-third of sales. With profitability far above the industry average, this product is
responsible for one-half of Aardvark's profits. Which of the following statements
regarding assessment of the general environment is accurate for Aardvark? - ✔✔The
company should monitor the general environment for changes that might affect the
revenue and profitability of all products.
✔✔Which of the following is NOT an activity used in the external environmental analysis
process? - ✔✔Decrypting
✔✔Environmental scanning would be most important for which of the following
organizations? - ✔✔A web design company catering to small businesses
✔✔The use of the Internet by Netflix to collect data on customer preferences is an
example of: - ✔✔scanning.
