MBA 706 DARRAT (EXAM 1)
Exam Coverage
• Strategic management foundations
• Environmental and industry analysis
• Competitive advantage
• Business-level strategy
• Corporate-level strategy
• Organizational resources and capabilities
• Strategic implementation
• Leadership and governance
• Ethical decision-making
• Performance measurement
1. Which best explains why the principle that valuable resources can support competitive
advantage when they are difficult to replicate matters when addressing a detailed
competitive advantage scenario and choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
,B. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
Answer: B — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
2. What best explains why the principle that competitive forces shape industry profitability
matters when addressing a detailed industry analysis scenario and choosing an appropriate
response?
A. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
B. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
,Answer: A — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
3. Why best explains why the principle that capabilities can be more strategically important
than individual physical assets matters when addressing a detailed resource-based view
scenario and choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
C. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
D. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
Answer: D — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
4. How best explains why the principle that differentiation seeks customer-perceived
uniqueness matters when addressing a detailed differentiation strategy scenario and
choosing an appropriate response?
, A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
C. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
Answer: C — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
5. When best explains why the principle that cost leadership requires efficient operations and
disciplined cost control matters when addressing a detailed cost leadership scenario and
choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
Exam Coverage
• Strategic management foundations
• Environmental and industry analysis
• Competitive advantage
• Business-level strategy
• Corporate-level strategy
• Organizational resources and capabilities
• Strategic implementation
• Leadership and governance
• Ethical decision-making
• Performance measurement
1. Which best explains why the principle that valuable resources can support competitive
advantage when they are difficult to replicate matters when addressing a detailed
competitive advantage scenario and choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
,B. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
Answer: B — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
2. What best explains why the principle that competitive forces shape industry profitability
matters when addressing a detailed industry analysis scenario and choosing an appropriate
response?
A. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
B. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
,Answer: A — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
3. Why best explains why the principle that capabilities can be more strategically important
than individual physical assets matters when addressing a detailed resource-based view
scenario and choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
C. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
D. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
Answer: D — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
4. How best explains why the principle that differentiation seeks customer-perceived
uniqueness matters when addressing a detailed differentiation strategy scenario and
choosing an appropriate response?
, A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
C. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
D. Delay consideration of the principle until after all other information has been collected,
even when urgent action is indicated.
Answer: C — The correct choice applies the stated principle while accounting for context,
safety, and appropriate reassessment.
5. When best explains why the principle that cost leadership requires efficient operations and
disciplined cost control matters when addressing a detailed cost leadership scenario and
choosing an appropriate response?
A. Ignore the principle unless an unrelated complication appears, because the finding is not
useful for decision-making.
B. Apply the principle accurately while considering the full context, safety implications, and
relevant follow-up information.
C. Treat the principle as universally decisive without reassessing the scenario,
contraindications, or competing priorities.
