MGT8803 STRATEGY EXAMINATION TEST
2026 QUESTIONS WITH SOLUTIONS
◉ External Context for Planning. Answer: regulators | partners &
shareholders | competitors | suppliers | tech, econ, labor, society |
communities | customers
◉ Internal Context for Planning. Answer: mgt's vision | mission/values |
culture | people & workforce diversity | technology | physical assets |
intellectual property
◉ Planning is important because it.... Answer: 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. Answer: the unknowable; uncertainty that
remains...important in assessing risk
◉ Hierarchical (Tall) Organizational Structure. Answer: many layers of
middle mgt | senior mgrs make most operational decisions | information
flows from top-down | stable environment
,◉ Flat (Networked) Organizational Structure. Answer: 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. Answer: 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. Answer: 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. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
◉ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
◉ Main objective of business strategy. Answer: achieve superior
performance in marketplace
, ◉ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
◉ Competitive advantage. Answer: 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. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
◉ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
◉ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
◉ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
2026 QUESTIONS WITH SOLUTIONS
◉ External Context for Planning. Answer: regulators | partners &
shareholders | competitors | suppliers | tech, econ, labor, society |
communities | customers
◉ Internal Context for Planning. Answer: mgt's vision | mission/values |
culture | people & workforce diversity | technology | physical assets |
intellectual property
◉ Planning is important because it.... Answer: 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. Answer: the unknowable; uncertainty that
remains...important in assessing risk
◉ Hierarchical (Tall) Organizational Structure. Answer: many layers of
middle mgt | senior mgrs make most operational decisions | information
flows from top-down | stable environment
,◉ Flat (Networked) Organizational Structure. Answer: 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. Answer: 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. Answer: 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. Answer: 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
◉ SMART. Answer: Specific, Measurable, Attainable, Realistic, Timely
◉ Main objective of business strategy. Answer: achieve superior
performance in marketplace
, ◉ Strategy. Answer: goal-directed actions a firm takes to gain & sustain
superior performance relative to competitors.
◉ Competitive advantage. Answer: 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. Answer: 1. diagnosis of
competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
◉ Cost Leadership. Answer: lowest-cost producer in industry | pricing at
or below industry avg while leveraging a low "cost" advantage
◉ Differentiation. Answer: economic value created is greater than
competitors | uniqueness in an industry with broad market | making
products unique to allow charging premium price
◉ How Tesla does Differentiation. Answer: battery technology,
autonomous driving, high performance, supercharger network, wow
factor
