MGT-4073 EXAM #1 REVIEW QUESTIONS AND ANSWERS | MGT-4073 EXAM 1
STUDY GUIDE & PRACTICE TEST 2026/2027
Stakeholder Symbiosis - correct answer ✔✔P&G created a cleaning product that led to a change in
consumer shopping habits and also a revolution in industry supply chain economics. According to the
text, this is an example of
A. zero-sum relationship among stakeholders.
B. stakeholder symbiosis.
C. rewarding stakeholders.
D. emphasizing financial returns.
romantic view of leadership - correct answer ✔✔situations in which the leader is the key force
determining the organization's success - or lack thereof
external control view of leadership - correct answer ✔✔situations in which external forces - where the
leader has limited influence - determine the organization's success
strategic management - correct answer ✔✔the analyses, decisions, and actions an organization
undertakes in order to create and sustain competitive advantages.
Strategy - correct answer ✔✔the analysis, decisions, and implementation that enable a firm to succeed.
competitive advantage - correct answer ✔✔a firm's resources and capabilities that enable it to
overcome the competitive forces in its industry(ies).
(How should we compete in order to create competitive advantages in the marketplace?)
(How can we create competitive advantages in the marketplace that are unique, valuable, and difficult
for rivals to copy or substitute?)
Stakeholders - correct answer ✔✔are those individuals, groups, and organizations that have a "stake" in
the success of the organization, including owners (shareholders in a publicly held corporation),
employees, customers, suppliers, the community at large, and so on.
Effectiveness - correct answer ✔✔"Doing the right thing" tailoring actions to the needs of an
organization rather than wasting effort
Efficency - correct answer ✔✔"Doing things right" performing actions at a low cost relative to a
benchmark
intended strategy - correct answer ✔✔strategy in which organizational decisions are determined only by
analysis
realized strategy - correct answer ✔✔strategy in which organizational decisions are determined by both
analysis and unforeseen environmental developments, unanticipated resource constraints, and/or
changes in managerial preferences
, strategy analysis - correct answer ✔✔study of firms' external and internal environments, and their fit
with organizational vision and goals
strategy formulation - correct answer ✔✔decisions made by firms regarding investments, commitments,
and other aspects of operations that create and sustain competitive advantage
SWOT - correct answer ✔✔strengths, weaknesses, opportunities, threats
Corporate Governance - correct answer ✔✔the relationship among various participants in determining
the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the
management (led by the chief executive officer), and (3) the board of directors.
Social Responsibility - correct answer ✔✔the expectation that businesses or individuals will strive to
improve the overall welfare of society.
triple bottom line - correct answer ✔✔assessment of a firm's financial, social, and environmental
performance.
A hierarchy of goals - correct answer ✔✔vision, mission, strategic objectives
(General--------->Specific)
Mission Statement - correct answer ✔✔a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
SMART objectives - correct answer ✔✔Specific, Measurable, Achievable, Relevant, Time-bound
Perceptual acuity - correct answer ✔✔the ability to sense what is coming before the fog clears.
competitive intelligence - correct answer ✔✔a firm's activities of collecting and interpreting data on
competitors, defining and understanding the industry, and identifying competitors' strengths and
weaknesses.
Environmental Forecasting - correct answer ✔✔the development of plausible projections about the
direction, scope, speed, and intensity of environmental change.
Scenario Analysis - correct answer ✔✔an in-depth approach to environmental forecasting that involves
experts' detailed assessments of societal trends, economics, politics, technology, or other dimensions of
the external environment.
General Environment - correct answer ✔✔factors external to an industry, and usually beyond a firm's
control, that affect a firm's strategy. (Political, Demographics, Economic, Global, Technology)
competitive environment - correct answer ✔✔factors that pertain to an industry and affect a firm's
strategies.
Porter's Five Forces Model of Industry Competition - correct answer ✔✔1. The threat of new entrants.
2. The bargaining power of buyers.
STUDY GUIDE & PRACTICE TEST 2026/2027
Stakeholder Symbiosis - correct answer ✔✔P&G created a cleaning product that led to a change in
consumer shopping habits and also a revolution in industry supply chain economics. According to the
text, this is an example of
A. zero-sum relationship among stakeholders.
B. stakeholder symbiosis.
C. rewarding stakeholders.
D. emphasizing financial returns.
romantic view of leadership - correct answer ✔✔situations in which the leader is the key force
determining the organization's success - or lack thereof
external control view of leadership - correct answer ✔✔situations in which external forces - where the
leader has limited influence - determine the organization's success
strategic management - correct answer ✔✔the analyses, decisions, and actions an organization
undertakes in order to create and sustain competitive advantages.
Strategy - correct answer ✔✔the analysis, decisions, and implementation that enable a firm to succeed.
competitive advantage - correct answer ✔✔a firm's resources and capabilities that enable it to
overcome the competitive forces in its industry(ies).
(How should we compete in order to create competitive advantages in the marketplace?)
(How can we create competitive advantages in the marketplace that are unique, valuable, and difficult
for rivals to copy or substitute?)
Stakeholders - correct answer ✔✔are those individuals, groups, and organizations that have a "stake" in
the success of the organization, including owners (shareholders in a publicly held corporation),
employees, customers, suppliers, the community at large, and so on.
Effectiveness - correct answer ✔✔"Doing the right thing" tailoring actions to the needs of an
organization rather than wasting effort
Efficency - correct answer ✔✔"Doing things right" performing actions at a low cost relative to a
benchmark
intended strategy - correct answer ✔✔strategy in which organizational decisions are determined only by
analysis
realized strategy - correct answer ✔✔strategy in which organizational decisions are determined by both
analysis and unforeseen environmental developments, unanticipated resource constraints, and/or
changes in managerial preferences
, strategy analysis - correct answer ✔✔study of firms' external and internal environments, and their fit
with organizational vision and goals
strategy formulation - correct answer ✔✔decisions made by firms regarding investments, commitments,
and other aspects of operations that create and sustain competitive advantage
SWOT - correct answer ✔✔strengths, weaknesses, opportunities, threats
Corporate Governance - correct answer ✔✔the relationship among various participants in determining
the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the
management (led by the chief executive officer), and (3) the board of directors.
Social Responsibility - correct answer ✔✔the expectation that businesses or individuals will strive to
improve the overall welfare of society.
triple bottom line - correct answer ✔✔assessment of a firm's financial, social, and environmental
performance.
A hierarchy of goals - correct answer ✔✔vision, mission, strategic objectives
(General--------->Specific)
Mission Statement - correct answer ✔✔a set of organizational goals that identifies the purpose of the
organization, its basis of competition, and competitive advantage
SMART objectives - correct answer ✔✔Specific, Measurable, Achievable, Relevant, Time-bound
Perceptual acuity - correct answer ✔✔the ability to sense what is coming before the fog clears.
competitive intelligence - correct answer ✔✔a firm's activities of collecting and interpreting data on
competitors, defining and understanding the industry, and identifying competitors' strengths and
weaknesses.
Environmental Forecasting - correct answer ✔✔the development of plausible projections about the
direction, scope, speed, and intensity of environmental change.
Scenario Analysis - correct answer ✔✔an in-depth approach to environmental forecasting that involves
experts' detailed assessments of societal trends, economics, politics, technology, or other dimensions of
the external environment.
General Environment - correct answer ✔✔factors external to an industry, and usually beyond a firm's
control, that affect a firm's strategy. (Political, Demographics, Economic, Global, Technology)
competitive environment - correct answer ✔✔factors that pertain to an industry and affect a firm's
strategies.
Porter's Five Forces Model of Industry Competition - correct answer ✔✔1. The threat of new entrants.
2. The bargaining power of buyers.
