MGT 4394: Chapters 1-6 Final Exam
and All Correct Answers 2026
Updated.
(1) strategic management - Answer an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage
strategy - Answer the set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors
competitive advantage - Answer superior performance relative to other competitors in the
same industry or the industry average
sustainable competitive advantage - Answer outperforming competitors or the industry
average over a prolonged period of time
competitive disadvantage - Answer underperformance relative to other competitors in the
same industry or the industry average
competitive parity - Answer performance of two or more firms at the same level
industry effects - Answer firm performance attributed to the structure of industry in which
the firm competes
firm effects - Answer firm performance attributed to the actions managers take
black swan events - Answer incidents that describe highly improbable but high-impact events
stakeholders - Answer organizations, groups, and individuals that can affect or are affected by
a firm's actions
stakeholder strategy - Answer an integrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
stakeholder impact analysis - Answer a decision tool with which managers can recognize,
prioritize, and address the needs of different stakeholders, enabling the firm to achieve
competitive advantage while acting as a good corporate citizen
, corporate social responsibility (CSR) - Answer a framework that helps firms recognize and
address the economic, legal, social, and philanthropic expectations that society has of the
business enterprise at a given point in time
AFI strategy framework - Answer a model that links three interdependent strategic
management tasks - analyze, formulate, and implement - that, together, help managers plan
and implement a strategy that can improve performance and result in competitive advantage
(2) strategic management process - Answer method put in place by strategic leaders to
conceive and implement a strategy, which can lay the foundation for a sustainable competitive
advantage
strategic leadership - Answer executives' use of power and influence to direct the activities of
others when pursuing an organization's goals (mission and vision)
vision - Answer a statement about what an organization ultimately wants to accomplish; it
captures the company's aspiration
mission - Answer description of what an organization actually does - the products and
services it plans to provide and the markets in which it will compete
strategic commitments - Answer actions that are costly, long-term-oriented, and difficult to
reverse
organizational values - Answer ethical standards and norms that govern the behavior of
individuals within a firm or organization
upper-echelons theory - Answer a conceptual framework that views organizational outcomes
- strategic choices and performance levels - as reflections of the values of the members of the
top management team, who interpret situations through the lens of their unique perspectives
Level-5 leadership pyramid - Answer a conceptual framework of leadership progression with
five distinct sequential levels
strategic business unit (SBU) - Answer a standalone division of a larger conglomerate, with its
own profit and loss responsibility
top-down strategic planning - Answer a rational, top-down process through which
management can program future success; typically concentrates strategic intelligence and
decision-making responsibilities in the office of the CEO
and All Correct Answers 2026
Updated.
(1) strategic management - Answer an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage
strategy - Answer the set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors
competitive advantage - Answer superior performance relative to other competitors in the
same industry or the industry average
sustainable competitive advantage - Answer outperforming competitors or the industry
average over a prolonged period of time
competitive disadvantage - Answer underperformance relative to other competitors in the
same industry or the industry average
competitive parity - Answer performance of two or more firms at the same level
industry effects - Answer firm performance attributed to the structure of industry in which
the firm competes
firm effects - Answer firm performance attributed to the actions managers take
black swan events - Answer incidents that describe highly improbable but high-impact events
stakeholders - Answer organizations, groups, and individuals that can affect or are affected by
a firm's actions
stakeholder strategy - Answer an integrative approach to managing a diverse set of
stakeholders effectively in order to gain and sustain competitive advantage
stakeholder impact analysis - Answer a decision tool with which managers can recognize,
prioritize, and address the needs of different stakeholders, enabling the firm to achieve
competitive advantage while acting as a good corporate citizen
, corporate social responsibility (CSR) - Answer a framework that helps firms recognize and
address the economic, legal, social, and philanthropic expectations that society has of the
business enterprise at a given point in time
AFI strategy framework - Answer a model that links three interdependent strategic
management tasks - analyze, formulate, and implement - that, together, help managers plan
and implement a strategy that can improve performance and result in competitive advantage
(2) strategic management process - Answer method put in place by strategic leaders to
conceive and implement a strategy, which can lay the foundation for a sustainable competitive
advantage
strategic leadership - Answer executives' use of power and influence to direct the activities of
others when pursuing an organization's goals (mission and vision)
vision - Answer a statement about what an organization ultimately wants to accomplish; it
captures the company's aspiration
mission - Answer description of what an organization actually does - the products and
services it plans to provide and the markets in which it will compete
strategic commitments - Answer actions that are costly, long-term-oriented, and difficult to
reverse
organizational values - Answer ethical standards and norms that govern the behavior of
individuals within a firm or organization
upper-echelons theory - Answer a conceptual framework that views organizational outcomes
- strategic choices and performance levels - as reflections of the values of the members of the
top management team, who interpret situations through the lens of their unique perspectives
Level-5 leadership pyramid - Answer a conceptual framework of leadership progression with
five distinct sequential levels
strategic business unit (SBU) - Answer a standalone division of a larger conglomerate, with its
own profit and loss responsibility
top-down strategic planning - Answer a rational, top-down process through which
management can program future success; typically concentrates strategic intelligence and
decision-making responsibilities in the office of the CEO
