MNO3705 EXAM PACK STUDY GUIDE 2025/2026
VERIFIED QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES || 100% GUARANTEED PASS <LATEST
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MNO3705 Exam Pack Study Guide 2025/2026
Part 1: The Strategic Management Process
1. What is the primary purpose of strategic management?
Answer: To formulate, implement, and evaluate cross-functional decisions that enable an
organization to achieve its long-term objectives and gain a competitive advantage.
2. Define strategy.
Answer: Strategy is a comprehensive, integrated plan designed to ensure that the basic
objectives of the enterprise are achieved. It is about making choices on where to compete and
how to win.
3. List the three core stages of the strategic management process.
Answer: 1) Strategy Formulation, 2) Strategy Implementation, 3) Strategy Evaluation.
,4. What is the difference between a mission statement and a vision statement?
Answer: A mission statement defines the organization's present business, purpose, and "who
we are and what we do." A vision statement describes what the organization aspires to become
in the future, providing a clear long-term direction.
5. What are strategic objectives, and why are they important?
Answer: Strategic objectives are specific, measurable goals that an organization aims to achieve
to fulfill its mission and vision. They are important because they convert the vision into
performance targets and create accountability.
6. Who are typically the key players involved in the strategic management process?
Answer: The Board of Directors, top-level executives (CEO, CFO, etc.), middle managers, and in
some modern structures, all employees through participatory approaches.
7. Explain the concept of "strategic intent."
Answer: Strategic intent refers to an obsession with achieving a goal that is often beyond a
company's current resources and capabilities. It involves actively managing the gap between
ambition and current reality (e.g., Canon's intent to "Beat Xerox").
8. What is the role of a strategist?
Answer: A strategist is responsible for leading the strategic management process, analyzing the
competitive environment, making strategic decisions, and ensuring the organization is aligned
to execute the strategy.
, Part 2: External and Internal Analysis
9. What is an External Audit?
Answer: An external audit involves identifying and evaluating trends, events, and forces beyond
an organization's control that present opportunities and threats.
10. Describe Porter's Five Forces Model.
Answer: A framework for analyzing an industry's competitive intensity and profitability. The five
forces are: 1) Threat of New Entrants, 2) Bargaining Power of Buyers, 3) Bargaining Power of
Suppliers, 4) Threat of Substitute Products/Services, and 5) Rivalry Among Existing Competitors.
11. According to Porter's Five Forces, what makes an industry attractive?
Answer: An industry is attractive when the five forces are weak: low threat of new entrants, low
bargaining power of buyers and suppliers, few substitutes, and moderate rivalry.
12. What is PESTEL Analysis?
Answer: A framework for analyzing the macro-environmental factors that can influence an
organization: Political, Economic, Social, Technological, Environmental, and Legal.
13. Give an example of an Economic factor in a PESTEL analysis.
Answer: Inflation rates, interest rates, economic growth patterns, unemployment rates, and
exchange rates.
14. What is an Internal Audit?
Answer: An internal audit is the process of evaluating an organization's internal resources,
capabilities, and competencies to identify its strengths and weaknesses.
VERIFIED QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES || 100% GUARANTEED PASS <LATEST
VERSION>
MNO3705 Exam Pack Study Guide 2025/2026
Part 1: The Strategic Management Process
1. What is the primary purpose of strategic management?
Answer: To formulate, implement, and evaluate cross-functional decisions that enable an
organization to achieve its long-term objectives and gain a competitive advantage.
2. Define strategy.
Answer: Strategy is a comprehensive, integrated plan designed to ensure that the basic
objectives of the enterprise are achieved. It is about making choices on where to compete and
how to win.
3. List the three core stages of the strategic management process.
Answer: 1) Strategy Formulation, 2) Strategy Implementation, 3) Strategy Evaluation.
,4. What is the difference between a mission statement and a vision statement?
Answer: A mission statement defines the organization's present business, purpose, and "who
we are and what we do." A vision statement describes what the organization aspires to become
in the future, providing a clear long-term direction.
5. What are strategic objectives, and why are they important?
Answer: Strategic objectives are specific, measurable goals that an organization aims to achieve
to fulfill its mission and vision. They are important because they convert the vision into
performance targets and create accountability.
6. Who are typically the key players involved in the strategic management process?
Answer: The Board of Directors, top-level executives (CEO, CFO, etc.), middle managers, and in
some modern structures, all employees through participatory approaches.
7. Explain the concept of "strategic intent."
Answer: Strategic intent refers to an obsession with achieving a goal that is often beyond a
company's current resources and capabilities. It involves actively managing the gap between
ambition and current reality (e.g., Canon's intent to "Beat Xerox").
8. What is the role of a strategist?
Answer: A strategist is responsible for leading the strategic management process, analyzing the
competitive environment, making strategic decisions, and ensuring the organization is aligned
to execute the strategy.
, Part 2: External and Internal Analysis
9. What is an External Audit?
Answer: An external audit involves identifying and evaluating trends, events, and forces beyond
an organization's control that present opportunities and threats.
10. Describe Porter's Five Forces Model.
Answer: A framework for analyzing an industry's competitive intensity and profitability. The five
forces are: 1) Threat of New Entrants, 2) Bargaining Power of Buyers, 3) Bargaining Power of
Suppliers, 4) Threat of Substitute Products/Services, and 5) Rivalry Among Existing Competitors.
11. According to Porter's Five Forces, what makes an industry attractive?
Answer: An industry is attractive when the five forces are weak: low threat of new entrants, low
bargaining power of buyers and suppliers, few substitutes, and moderate rivalry.
12. What is PESTEL Analysis?
Answer: A framework for analyzing the macro-environmental factors that can influence an
organization: Political, Economic, Social, Technological, Environmental, and Legal.
13. Give an example of an Economic factor in a PESTEL analysis.
Answer: Inflation rates, interest rates, economic growth patterns, unemployment rates, and
exchange rates.
14. What is an Internal Audit?
Answer: An internal audit is the process of evaluating an organization's internal resources,
capabilities, and competencies to identify its strengths and weaknesses.
