MAC4863 – Enterprise Strategy | January/February
2026 Supplementary Exam Memo (UNISA South
Africa)
Question 1:
Which of the following terms best describes a company's plan to achieve competitive
advantage?
• A) Mission Statement
• B) Business Model
• C) Strategic Initiative
• D) Operational Plan
Correct Option: C) Strategic Initiative
Rationale: A strategic initiative refers to a long-term action plan aimed at achieving
specific business goals, including gaining a competitive advantage.
Question 2:
Which framework is commonly used to analyze the external competitive environment?
• A) SWOT Analysis
• B) Porter's Five Forces
• C) PEST Analysis
• D) Value Chain Analysis
Correct Option: B) Porter's Five Forces
Rationale: Porter's Five Forces framework helps identify the competitive forces in an
industry, assisting businesses in understanding their external environment and
positions.
Question 3:
What is the primary focus of a differentiation strategy?
• A) Cost Efficiency
• B) Unique Product Features
• C) Market Penetration
• D) High Volume Sales
Correct Option: B) Unique Product Features
,Rationale: A differentiation strategy aims to provide unique product features that
distinguish a company's offerings from competitors, enabling premium pricing and
customer loyalty.
Question 4:
In the context of strategic management, what does the term "core competencies" refer
to?
• A) Industry Standards
• B) A company's unique strengths
• C) Market Needs
• D) Financial Resources
Correct Option: B) A company's unique strengths
Rationale: Core competencies are the unique strengths or capabilities that give a
company competitive advantages in the market.
Question 5:
What type of strategy focuses on reducing costs in order to gain a competitive edge?
• A) Differentiation Strategy
• B) Cost Leadership Strategy
• C) Focus Strategy
• D) Diversification Strategy
Correct Option: B) Cost Leadership Strategy
Rationale: A cost leadership strategy aims to become the lowest-cost producer in an
industry, allowing the company to offer lower prices or achieve higher margins.
Question 6:
What does the "B" in the "B2B" and "B2C" business models stand for?
• A) Business
• B) Brand
• C) Buyer
• D) Benefit
Correct Option: A) Business
, Rationale: "B" stands for "Business," indicating business-to-business and business-to-
consumer models.
Question 7:
Which of the following is NOT a characteristic of a data-driven strategy?
• A) Uses analytics
• B) Based on intuition
• C) Informs decision making
• D) Measures performance
Correct Option: B) Based on intuition
Rationale: A data-driven strategy relies on empirical evidence, not intuition.
Question 8:
Which term describes a market entry strategy that involves a firm developing a new
product for a new market?
• A) Market Penetration
• B) Product Development
• C) Diversification
• D) Market Development
Correct Option: C) Diversification
Rationale: Diversification involves entering new markets with new products.
Question 9:
What is the primary goal of strategic management?
• A) Minimize costs
• B) Maximize shareholder value
• C) Enhance employee satisfaction
• D) Achieve operational efficiency
Correct Option: B) Maximize shareholder value
2026 Supplementary Exam Memo (UNISA South
Africa)
Question 1:
Which of the following terms best describes a company's plan to achieve competitive
advantage?
• A) Mission Statement
• B) Business Model
• C) Strategic Initiative
• D) Operational Plan
Correct Option: C) Strategic Initiative
Rationale: A strategic initiative refers to a long-term action plan aimed at achieving
specific business goals, including gaining a competitive advantage.
Question 2:
Which framework is commonly used to analyze the external competitive environment?
• A) SWOT Analysis
• B) Porter's Five Forces
• C) PEST Analysis
• D) Value Chain Analysis
Correct Option: B) Porter's Five Forces
Rationale: Porter's Five Forces framework helps identify the competitive forces in an
industry, assisting businesses in understanding their external environment and
positions.
Question 3:
What is the primary focus of a differentiation strategy?
• A) Cost Efficiency
• B) Unique Product Features
• C) Market Penetration
• D) High Volume Sales
Correct Option: B) Unique Product Features
,Rationale: A differentiation strategy aims to provide unique product features that
distinguish a company's offerings from competitors, enabling premium pricing and
customer loyalty.
Question 4:
In the context of strategic management, what does the term "core competencies" refer
to?
• A) Industry Standards
• B) A company's unique strengths
• C) Market Needs
• D) Financial Resources
Correct Option: B) A company's unique strengths
Rationale: Core competencies are the unique strengths or capabilities that give a
company competitive advantages in the market.
Question 5:
What type of strategy focuses on reducing costs in order to gain a competitive edge?
• A) Differentiation Strategy
• B) Cost Leadership Strategy
• C) Focus Strategy
• D) Diversification Strategy
Correct Option: B) Cost Leadership Strategy
Rationale: A cost leadership strategy aims to become the lowest-cost producer in an
industry, allowing the company to offer lower prices or achieve higher margins.
Question 6:
What does the "B" in the "B2B" and "B2C" business models stand for?
• A) Business
• B) Brand
• C) Buyer
• D) Benefit
Correct Option: A) Business
, Rationale: "B" stands for "Business," indicating business-to-business and business-to-
consumer models.
Question 7:
Which of the following is NOT a characteristic of a data-driven strategy?
• A) Uses analytics
• B) Based on intuition
• C) Informs decision making
• D) Measures performance
Correct Option: B) Based on intuition
Rationale: A data-driven strategy relies on empirical evidence, not intuition.
Question 8:
Which term describes a market entry strategy that involves a firm developing a new
product for a new market?
• A) Market Penetration
• B) Product Development
• C) Diversification
• D) Market Development
Correct Option: C) Diversification
Rationale: Diversification involves entering new markets with new products.
Question 9:
What is the primary goal of strategic management?
• A) Minimize costs
• B) Maximize shareholder value
• C) Enhance employee satisfaction
• D) Achieve operational efficiency
Correct Option: B) Maximize shareholder value
