MBA Final Exam questions n complete
solutions A+ rated
strategy - ANS ✔✔where should we compete and how? integrated set of choices that positions
the business in its industry so as to generate superior financial returns over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a
business performs in its environment compared to competitors
purpose and goal of strategy - ANS ✔✔create a competitive advantage, determines where to
engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average profitability, above
average return on equity
Five Stages of the Strategic Management Process - ANS ✔✔Analysis - understand unique
competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - ANS ✔✔Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
,Competitive Advantage - ANS ✔✔specialized approach to create value to meet market
expectations
Strategic Decision Making - ANS ✔✔non-routine, affect entire organizational functions,
commitment of resources needed, difficult to reverse, making a clear choice among
alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - ANS ✔✔industries and competitors, how it is evolving, growing and the
importance
Internal Analysis - ANS ✔✔value chain and competitive advantage
Resource Based Analysis - ANS ✔✔Sustainable competitive advantage
Strategy vs Tactics - ANS ✔✔Strategy - long term plan, affects entire company, difficult to
change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - ANS ✔✔Technology, big data, rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
, how is strategy effectiveness measured - ANS ✔✔Financial performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
SWOT Analysis - ANS ✔✔Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - ANS ✔✔Evaluates structural factors focusing on how
they influence industry profitability
Threat of New Entrants - increases competition, captures market share (most important in
terms of profitability), capital requirements, economies of scale, absolute cost advantages,
access to inputs, access to distribution channels, need for product differentiation, switching
costs, expected retaliation, government regulation
Bargaining power of buyers - free to direct their purchases elsewhere, buyer concentration,
buyer volume, switching costs of buyers, buyer information, threat of backward integration,
availability of substitutes
Threat of Substitutes - relative price/performance of substitutes, switching costs of buyers,
buyer propensity to substitute
Bargaining power of suppliers - raise prices by offering a unique product, supplier concentration,
importance of volume to supplier, switching costs of suppliers, differentiation of inputs
required, presence of substitute inputs, cost of input relative to total costs, threat of forward
integration
Competitive Rivalry: industry growth rate, fixed costs as percentage of total costs, overcapacity
in industry, low product differentiation, low switching costs, informational complexity,
numerous or equally balanced competition, high strategic stakes, exit barriers
Commodity - ANS ✔✔cant differentiate, banana
solutions A+ rated
strategy - ANS ✔✔where should we compete and how? integrated set of choices that positions
the business in its industry so as to generate superior financial returns over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a
business performs in its environment compared to competitors
purpose and goal of strategy - ANS ✔✔create a competitive advantage, determines where to
engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average profitability, above
average return on equity
Five Stages of the Strategic Management Process - ANS ✔✔Analysis - understand unique
competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - ANS ✔✔Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
,Competitive Advantage - ANS ✔✔specialized approach to create value to meet market
expectations
Strategic Decision Making - ANS ✔✔non-routine, affect entire organizational functions,
commitment of resources needed, difficult to reverse, making a clear choice among
alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - ANS ✔✔industries and competitors, how it is evolving, growing and the
importance
Internal Analysis - ANS ✔✔value chain and competitive advantage
Resource Based Analysis - ANS ✔✔Sustainable competitive advantage
Strategy vs Tactics - ANS ✔✔Strategy - long term plan, affects entire company, difficult to
change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - ANS ✔✔Technology, big data, rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
, how is strategy effectiveness measured - ANS ✔✔Financial performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
SWOT Analysis - ANS ✔✔Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - ANS ✔✔Evaluates structural factors focusing on how
they influence industry profitability
Threat of New Entrants - increases competition, captures market share (most important in
terms of profitability), capital requirements, economies of scale, absolute cost advantages,
access to inputs, access to distribution channels, need for product differentiation, switching
costs, expected retaliation, government regulation
Bargaining power of buyers - free to direct their purchases elsewhere, buyer concentration,
buyer volume, switching costs of buyers, buyer information, threat of backward integration,
availability of substitutes
Threat of Substitutes - relative price/performance of substitutes, switching costs of buyers,
buyer propensity to substitute
Bargaining power of suppliers - raise prices by offering a unique product, supplier concentration,
importance of volume to supplier, switching costs of suppliers, differentiation of inputs
required, presence of substitute inputs, cost of input relative to total costs, threat of forward
integration
Competitive Rivalry: industry growth rate, fixed costs as percentage of total costs, overcapacity
in industry, low product differentiation, low switching costs, informational complexity,
numerous or equally balanced competition, high strategic stakes, exit barriers
Commodity - ANS ✔✔cant differentiate, banana
