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Strategic Management Chapters 1-5 Exam
Questions and Answers 100% Pass
Strategic management - ANS An integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
Never ending cycle of analysis, formulation, implementation, and feedback.
Competitive advantage - ANS Superior performance relative to other competitors in the
same industry or the industry average.
A firm that formulates and implements a strategy that leads to superior performance relative to
competitors has this.
Sustainable competitive advantage - ANS Outperforming competitors or the industry average
over a prolonged period of time.
Competitive disadvantage - ANS Under performance relative to other competitors in the
same industry or the industry average.
Competitive parity - ANS Performance of two or more firms at the same level.
Strategy - ANS The goal-directed actions a firm intends to take in its quest to gain and sustain
competitive advantages.
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Manager's "theory" about how to gain and sustain.
Strategic positioning - ANS Staking out a unique position in an industry that allows the firm
to provide value to customers while controlling costs.
Co-opetition - ANS Cooperation by competitors to achieve a strategic objective.
Firm effects - ANS The results of managers' actions to influence firm performance.
Have stronger effect on the firm.
Industry effects - ANS The results attributed to the choice of industry in which to compete.
Corporate-level strategy - ANS Involves decisions made at the highest level of the firm about
where to compete. Which industries, markets, and geographies their company should compete,
and how well they can create synergies across different business units.
Business-level strategy - ANS Involves deciding how to compete in order to achieve superior
performance within the business unit. Formulated by general managers.
Functional-level strategy - ANS Involves deciding how to implement the business-level
strategy. Functional managers within a single functional area (accounting, HR, finance, IT,
customer service) are responsible for decisions and actions.
Strategic business unit (SBU) - ANS Standalone division of a larger conglomerate, with its
own profits and losses.
Business model - ANS The translation of the strategy into action takes place here, and it
details the firm's competitive tactics and initiatives. How the firm intends to make money.
©FYNDLAY 2
Strategic Management Chapters 1-5 Exam
Questions and Answers 100% Pass
Strategic management - ANS An integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
Never ending cycle of analysis, formulation, implementation, and feedback.
Competitive advantage - ANS Superior performance relative to other competitors in the
same industry or the industry average.
A firm that formulates and implements a strategy that leads to superior performance relative to
competitors has this.
Sustainable competitive advantage - ANS Outperforming competitors or the industry average
over a prolonged period of time.
Competitive disadvantage - ANS Under performance relative to other competitors in the
same industry or the industry average.
Competitive parity - ANS Performance of two or more firms at the same level.
Strategy - ANS The goal-directed actions a firm intends to take in its quest to gain and sustain
competitive advantages.
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Manager's "theory" about how to gain and sustain.
Strategic positioning - ANS Staking out a unique position in an industry that allows the firm
to provide value to customers while controlling costs.
Co-opetition - ANS Cooperation by competitors to achieve a strategic objective.
Firm effects - ANS The results of managers' actions to influence firm performance.
Have stronger effect on the firm.
Industry effects - ANS The results attributed to the choice of industry in which to compete.
Corporate-level strategy - ANS Involves decisions made at the highest level of the firm about
where to compete. Which industries, markets, and geographies their company should compete,
and how well they can create synergies across different business units.
Business-level strategy - ANS Involves deciding how to compete in order to achieve superior
performance within the business unit. Formulated by general managers.
Functional-level strategy - ANS Involves deciding how to implement the business-level
strategy. Functional managers within a single functional area (accounting, HR, finance, IT,
customer service) are responsible for decisions and actions.
Strategic business unit (SBU) - ANS Standalone division of a larger conglomerate, with its
own profits and losses.
Business model - ANS The translation of the strategy into action takes place here, and it
details the firm's competitive tactics and initiatives. How the firm intends to make money.
©FYNDLAY 2
