MGT 6201 Strategy Exam 2026/2027 – Questions,
Answers & Detailed Rationales
TABLE OF CONTENTS
1. Strategic Management Foundations
2. Vision, Mission, Goals & Objectives
3. External Environment & Industry Analysis
4. Internal Analysis & Competitive Advantage
5. Business-Level Strategy
6. Corporate-Level Strategy
7. Strategy Implementation & Organizational Design
8. Leadership, Culture, Ethics & Governance
9. Strategic Control, Evaluation & Risk
10.Global Strategy, Innovation & Comprehensive Cases
SECTION 1 — STRATEGIC MANAGEMENT FOUNDATIONS
Question 1
What is strategic management?
A. The process of preparing payroll
B. The process of formulating, implementing, and evaluating strategies
C. The process of recording daily transactions
D. The process of hiring employees only
Answer: B. The process of formulating, implementing, and evaluating strategies
Rationale: Strategic management is a continuous process through which
organizations analyze their environment, formulate strategies, implement them,
and evaluate results. It connects organizational resources and capabilities with
long-term objectives.
,Question 2
The primary purpose of strategy is to:
A. Eliminate all competition
B. Establish how an organization will achieve its objectives and create value
C. Increase paperwork
D. Reduce the number of organizational goals
Answer: B. Establish how an organization will achieve its objectives and create
value
Rationale: Strategy provides a coordinated direction for achieving organizational
objectives. It helps managers determine where to compete, how to compete, and
how organizational resources should be deployed.
Question 3
Which level of strategy focuses on the overall scope of an organization?
A. Functional strategy
B. Corporate-level strategy
C. Operational strategy
D. Individual strategy
Answer: B. Corporate-level strategy
Rationale: Corporate strategy addresses the overall portfolio of businesses and
determines where an organization should compete. It includes decisions about
diversification, acquisitions, divestitures, and vertical integration.
Question 4
Business-level strategy primarily addresses:
A. How a firm competes within a particular industry or market
B. How employees receive salaries
,C. How taxes are calculated
D. How office supplies are purchased
Answer: A. How a firm competes within a particular industry or market
Rationale: Business-level strategy determines how a company seeks competitive
advantage within a particular business. Common approaches include cost
leadership, differentiation, and focused strategies.
Question 5
Functional strategies are developed primarily to:
A. Support business and corporate strategies
B. Replace corporate strategy
C. Eliminate organizational departments
D. Determine national laws
Answer: A. Support business and corporate strategies
Rationale: Marketing, finance, operations, human resources, and other functions
develop strategies that support broader organizational objectives. Functional
alignment is important for effective execution.
Question 6
Which is normally the first step in strategic management?
A. Strategic analysis
B. Strategy implementation
C. Performance evaluation
D. Employee termination
Answer: A. Strategic analysis
Rationale: Organizations need to understand their internal capabilities and
external environment before selecting an appropriate strategy. Strategic analysis
provides the information needed for subsequent decisions.
, Question 7
Strategic analysis examines:
A. Only competitors
B. Only internal resources
C. Both internal and external factors
D. Only financial statements
Answer: C. Both internal and external factors
Rationale: Strategic analysis considers external opportunities and threats as well
as internal strengths and weaknesses. This provides a comprehensive basis for
strategic choice.
Question 8
Which statement best describes competitive advantage?
A. A temporary accounting gain
B. A firm's ability to create greater value than competitors in a sustainable
manner
C. A firm's number of employees
D. A firm's total expenses
Answer: B. A firm's ability to create greater value than competitors in a
sustainable manner
Rationale: Competitive advantage occurs when a firm can deliver superior value
or achieve lower costs relative to competitors. Sustainability depends on how
difficult the underlying advantage is to imitate or substitute.
Question 9
A sustainable competitive advantage requires:
Answers & Detailed Rationales
TABLE OF CONTENTS
1. Strategic Management Foundations
2. Vision, Mission, Goals & Objectives
3. External Environment & Industry Analysis
4. Internal Analysis & Competitive Advantage
5. Business-Level Strategy
6. Corporate-Level Strategy
7. Strategy Implementation & Organizational Design
8. Leadership, Culture, Ethics & Governance
9. Strategic Control, Evaluation & Risk
10.Global Strategy, Innovation & Comprehensive Cases
SECTION 1 — STRATEGIC MANAGEMENT FOUNDATIONS
Question 1
What is strategic management?
A. The process of preparing payroll
B. The process of formulating, implementing, and evaluating strategies
C. The process of recording daily transactions
D. The process of hiring employees only
Answer: B. The process of formulating, implementing, and evaluating strategies
Rationale: Strategic management is a continuous process through which
organizations analyze their environment, formulate strategies, implement them,
and evaluate results. It connects organizational resources and capabilities with
long-term objectives.
,Question 2
The primary purpose of strategy is to:
A. Eliminate all competition
B. Establish how an organization will achieve its objectives and create value
C. Increase paperwork
D. Reduce the number of organizational goals
Answer: B. Establish how an organization will achieve its objectives and create
value
Rationale: Strategy provides a coordinated direction for achieving organizational
objectives. It helps managers determine where to compete, how to compete, and
how organizational resources should be deployed.
Question 3
Which level of strategy focuses on the overall scope of an organization?
A. Functional strategy
B. Corporate-level strategy
C. Operational strategy
D. Individual strategy
Answer: B. Corporate-level strategy
Rationale: Corporate strategy addresses the overall portfolio of businesses and
determines where an organization should compete. It includes decisions about
diversification, acquisitions, divestitures, and vertical integration.
Question 4
Business-level strategy primarily addresses:
A. How a firm competes within a particular industry or market
B. How employees receive salaries
,C. How taxes are calculated
D. How office supplies are purchased
Answer: A. How a firm competes within a particular industry or market
Rationale: Business-level strategy determines how a company seeks competitive
advantage within a particular business. Common approaches include cost
leadership, differentiation, and focused strategies.
Question 5
Functional strategies are developed primarily to:
A. Support business and corporate strategies
B. Replace corporate strategy
C. Eliminate organizational departments
D. Determine national laws
Answer: A. Support business and corporate strategies
Rationale: Marketing, finance, operations, human resources, and other functions
develop strategies that support broader organizational objectives. Functional
alignment is important for effective execution.
Question 6
Which is normally the first step in strategic management?
A. Strategic analysis
B. Strategy implementation
C. Performance evaluation
D. Employee termination
Answer: A. Strategic analysis
Rationale: Organizations need to understand their internal capabilities and
external environment before selecting an appropriate strategy. Strategic analysis
provides the information needed for subsequent decisions.
, Question 7
Strategic analysis examines:
A. Only competitors
B. Only internal resources
C. Both internal and external factors
D. Only financial statements
Answer: C. Both internal and external factors
Rationale: Strategic analysis considers external opportunities and threats as well
as internal strengths and weaknesses. This provides a comprehensive basis for
strategic choice.
Question 8
Which statement best describes competitive advantage?
A. A temporary accounting gain
B. A firm's ability to create greater value than competitors in a sustainable
manner
C. A firm's number of employees
D. A firm's total expenses
Answer: B. A firm's ability to create greater value than competitors in a
sustainable manner
Rationale: Competitive advantage occurs when a firm can deliver superior value
or achieve lower costs relative to competitors. Sustainability depends on how
difficult the underlying advantage is to imitate or substitute.
Question 9
A sustainable competitive advantage requires:
