CRAFTING AND EXECUTING STRATEGY 23RD
EDITION ACTUAL EXAM PAPER 2026
QUESTIONS AND COMPLETE ANSWERS
◉ business model. Answer: sets forth the economic logic for making
money in a business, given the company's strategy.
the customer value proposition
the profit formula
◉ mission statement. Answer: conveys a company's purpose in
language specific enough to give the company its own identity.
◉ values. Answer: the beliefs, traits, and behavioral norms that
company personal are expected to display in conducting the
company's business and pursuing its strategic vision and mission.
◉ balanced scorecard. Answer: a tool that is widely used to help a
company achieve its financial objective by linking them to specific
strategic objectives derived from the company's business model.
◉ strategic plan. Answer: lays out its own future direction and
business purpose, performance targets, and strategy.
, ◉ strategic intent. Answer: relentless pursues an exceptionally
ambitious strategic objective, committing to do whatever it takes to
achieve the goals.
◉ cutthroat rivalry. Answer: when competitors engage in protracted
price wars or habitually undertake other aggressive strategic moves
that prove mutually destructive to profitability
◉ fierce rivalry. Answer: when the battle for market share is so
vigorous that the profit margins of most industry members are
squeezed to bare-bones levels
◉ weak rivalry. Answer: when most companies in the industry are
relatively well satisfied with their sales growth and market shares,
rarely undertake offensives to steal customers away from one
another, and earn consistently good profits and returns on
investments
◉ macro-environment. Answer: the broad environmental context in
which a company's industry is situated
◉ strategically relavate. Answer: important enough to have a
bearing on the decisions the company ultimately makes about its
direction, objectives, strategy, and business model
EDITION ACTUAL EXAM PAPER 2026
QUESTIONS AND COMPLETE ANSWERS
◉ business model. Answer: sets forth the economic logic for making
money in a business, given the company's strategy.
the customer value proposition
the profit formula
◉ mission statement. Answer: conveys a company's purpose in
language specific enough to give the company its own identity.
◉ values. Answer: the beliefs, traits, and behavioral norms that
company personal are expected to display in conducting the
company's business and pursuing its strategic vision and mission.
◉ balanced scorecard. Answer: a tool that is widely used to help a
company achieve its financial objective by linking them to specific
strategic objectives derived from the company's business model.
◉ strategic plan. Answer: lays out its own future direction and
business purpose, performance targets, and strategy.
, ◉ strategic intent. Answer: relentless pursues an exceptionally
ambitious strategic objective, committing to do whatever it takes to
achieve the goals.
◉ cutthroat rivalry. Answer: when competitors engage in protracted
price wars or habitually undertake other aggressive strategic moves
that prove mutually destructive to profitability
◉ fierce rivalry. Answer: when the battle for market share is so
vigorous that the profit margins of most industry members are
squeezed to bare-bones levels
◉ weak rivalry. Answer: when most companies in the industry are
relatively well satisfied with their sales growth and market shares,
rarely undertake offensives to steal customers away from one
another, and earn consistently good profits and returns on
investments
◉ macro-environment. Answer: the broad environmental context in
which a company's industry is situated
◉ strategically relavate. Answer: important enough to have a
bearing on the decisions the company ultimately makes about its
direction, objectives, strategy, and business model
