Strategic Management Exam Review | 40 Mini Cases and 120
Questions with Answers and Rationales 2026/2027
Case 1 Strategic choice
A retailer pursues premium service and the lowest price without funding either.
Managers approve every new initiative.
1. Explain how strategic choice frames the strategic issue.
2. What action should management consider, and why?
3. Challenge this proposed assumption: “Strategy is simply a list of every attractive
project.”
Case 2 Mission and objectives
A nonprofit states a purpose but never defines service outcomes. Teams disagree
about success.
4. Explain how mission and objectives frames the strategic issue.
5. What action should management consider, and why?
6. Challenge this proposed assumption: “A mission statement alone provides a
complete performance target.”
,Case 3 Stakeholder analysis
A plant expansion benefits owners but creates community and worker concerns.
7. Explain how stakeholder analysis frames the strategic issue.
8. What action should management consider, and why?
9. Challenge this proposed assumption: “Only shareholders can affect implementation
success.”
Case 4 PESTEL analysis
A manufacturer ignores new technology and changing regulation while forecasting
demand.
10. Explain how pestel analysis frames the strategic issue.
11. What action should management consider, and why?
12. Challenge this proposed assumption: “PESTEL directly measures internal
manufacturing capability.”
,Case 5 Industry rivalry
Several similar suppliers chase slow-growing demand with repeated discounts.
13. Explain how industry rivalry frames the strategic issue.
14. What action should management consider, and why?
15. Challenge this proposed assumption: “More industry revenue growth always
means low rivalry.”
Case 6 Threat of entry
An attractive market requires certification, distribution access, and major
investment.
16. Explain how threat of entry frames the strategic issue.
17. What action should management consider, and why?
18. Challenge this proposed assumption: “High profitability guarantees immediate
frictionless entry.”
, Case 7 Substitutes
A taxi operator watches only other taxi firms while customers shift to remote
meetings.
19. Explain how substitutes frames the strategic issue.
20. What action should management consider, and why?
21. Challenge this proposed assumption: “A substitute must use the identical product
technology.”
Case 8 Supplier power
A factory depends on one qualified component supplier with costly switching.
22. Explain how supplier power frames the strategic issue.
23. What action should management consider, and why?
24. Challenge this proposed assumption: “A large purchasing budget always
eliminates supplier power.”
Questions with Answers and Rationales 2026/2027
Case 1 Strategic choice
A retailer pursues premium service and the lowest price without funding either.
Managers approve every new initiative.
1. Explain how strategic choice frames the strategic issue.
2. What action should management consider, and why?
3. Challenge this proposed assumption: “Strategy is simply a list of every attractive
project.”
Case 2 Mission and objectives
A nonprofit states a purpose but never defines service outcomes. Teams disagree
about success.
4. Explain how mission and objectives frames the strategic issue.
5. What action should management consider, and why?
6. Challenge this proposed assumption: “A mission statement alone provides a
complete performance target.”
,Case 3 Stakeholder analysis
A plant expansion benefits owners but creates community and worker concerns.
7. Explain how stakeholder analysis frames the strategic issue.
8. What action should management consider, and why?
9. Challenge this proposed assumption: “Only shareholders can affect implementation
success.”
Case 4 PESTEL analysis
A manufacturer ignores new technology and changing regulation while forecasting
demand.
10. Explain how pestel analysis frames the strategic issue.
11. What action should management consider, and why?
12. Challenge this proposed assumption: “PESTEL directly measures internal
manufacturing capability.”
,Case 5 Industry rivalry
Several similar suppliers chase slow-growing demand with repeated discounts.
13. Explain how industry rivalry frames the strategic issue.
14. What action should management consider, and why?
15. Challenge this proposed assumption: “More industry revenue growth always
means low rivalry.”
Case 6 Threat of entry
An attractive market requires certification, distribution access, and major
investment.
16. Explain how threat of entry frames the strategic issue.
17. What action should management consider, and why?
18. Challenge this proposed assumption: “High profitability guarantees immediate
frictionless entry.”
, Case 7 Substitutes
A taxi operator watches only other taxi firms while customers shift to remote
meetings.
19. Explain how substitutes frames the strategic issue.
20. What action should management consider, and why?
21. Challenge this proposed assumption: “A substitute must use the identical product
technology.”
Case 8 Supplier power
A factory depends on one qualified component supplier with costly switching.
22. Explain how supplier power frames the strategic issue.
23. What action should management consider, and why?
24. Challenge this proposed assumption: “A large purchasing budget always
eliminates supplier power.”
