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MGT 8803 - Business Strategy
Questions and Answers Latest 2026
Role of Planning in Firm Ans: Planning (primary) ->
organizing & staffing -> leading -> controlling
External Context for Planning Ans: regulators | partners &
shareholders | competitors | suppliers | tech, econ, labor,
society | communities | customers
Internal Context for Planning Ans: mgt's vision |
mission/values | culture | people & workforce diversity |
technology | physical assets | intellectual property
Planning is important because it... Ans: 1. provides
direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty Ans: the unknowable; uncertainty
that remains...important in assessing risk
Hierarchical (Tall) Organizational Structure Ans: many
layers of middle mgt | senior mgrs make most
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operational decisions | information flows from top-down |
stable environment
Flat (Networked) Organizational Structure Ans: front-line
employees empowered to make decisions | information
flows top-down AND bottom-up | few levels of middle
mgt | decentralized decision making | dynamic
environment
Strategic Plans Ans: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive
advantage
5. driven by mgt's vision, mission, values
Functional Plans Ans: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
Tactical/Operations Plans Ans: 1. narrow, specific to firm
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2. allocation of specific resources to specific tasks or
operations
SMART Ans: Specific, Measurable, Attainable, Realistic,
Timely
Main objective of business strategy Ans: achieve superior
performance in marketplace
Strategy Ans: goal-directed actions a firm takes to gain &
sustain superior performance relative to competitors.
Competitive advantage Ans: superior performance
relative to other competitors in same industry OR
industry average | temporary
*people prefer your brand over another's so they are
willing to pay more (ie, Apple)
Elements of Good Business Strategy Ans: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
Cost Leadership Ans: lowest-cost producer in industry |
pricing at or below industry avg while leveraging a low
"cost" advantage
Differentiation Ans: economic value created is greater
than competitors | uniqueness in an industry with broad
© 2025 All rights reserved
MGT 8803 - Business Strategy
Questions and Answers Latest 2026
Role of Planning in Firm Ans: Planning (primary) ->
organizing & staffing -> leading -> controlling
External Context for Planning Ans: regulators | partners &
shareholders | competitors | suppliers | tech, econ, labor,
society | communities | customers
Internal Context for Planning Ans: mgt's vision |
mission/values | culture | people & workforce diversity |
technology | physical assets | intellectual property
Planning is important because it... Ans: 1. provides
direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty Ans: the unknowable; uncertainty
that remains...important in assessing risk
Hierarchical (Tall) Organizational Structure Ans: many
layers of middle mgt | senior mgrs make most
© 2025 All rights reserved
, 2 | Page
operational decisions | information flows from top-down |
stable environment
Flat (Networked) Organizational Structure Ans: front-line
employees empowered to make decisions | information
flows top-down AND bottom-up | few levels of middle
mgt | decentralized decision making | dynamic
environment
Strategic Plans Ans: 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive
advantage
5. driven by mgt's vision, mission, values
Functional Plans Ans: 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
Tactical/Operations Plans Ans: 1. narrow, specific to firm
© 2025 All rights reserved
, 3 | Page
2. allocation of specific resources to specific tasks or
operations
SMART Ans: Specific, Measurable, Attainable, Realistic,
Timely
Main objective of business strategy Ans: achieve superior
performance in marketplace
Strategy Ans: goal-directed actions a firm takes to gain &
sustain superior performance relative to competitors.
Competitive advantage Ans: superior performance
relative to other competitors in same industry OR
industry average | temporary
*people prefer your brand over another's so they are
willing to pay more (ie, Apple)
Elements of Good Business Strategy Ans: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
Cost Leadership Ans: lowest-cost producer in industry |
pricing at or below industry avg while leveraging a low
"cost" advantage
Differentiation Ans: economic value created is greater
than competitors | uniqueness in an industry with broad
© 2025 All rights reserved
