Strategic Management: 2026
Competitive Analysis
Strategy Formulation, Industry Dynamics & Rivalry (100 Questions)
1. What is the primary focus of "Strategic Management"?
A) Daily supervision of low-level employees
B) The continuous planning, monitoring, analysis, and assessment of all that is necessary for an
organization to meet its goals and objectives
C) Managing the company's social media accounts
D) Filing annual tax returns
Correct Answer: B) The continuous planning, monitoring, analysis, and assessment of all
that is necessary for an organization to meet its goals and objectives
2. Michael Porter's "Five Forces" framework is used to analyze:
A) The personal strengths of the CEO
B) The level of competition within an industry and its long-term profitability potential
C) The five most expensive products in a market
D) The history of the industrial revolution
Correct Answer: B) The level of competition within an industry and its long-term
profitability potential
3. In the Five Forces model, "Threat of Substitutes" refers to:
A) Competitors lowering their prices
B) Products from other industries that can perform the same function as the industry’s product
C) New employees replacing old ones
D) A company changing its brand name
Correct Answer: B) Products from other industries that can perform the same function as
the industry’s product
,4. A "Blue Ocean Strategy" aims to:
A) Compete intensely in existing markets
B) Create uncontested market space and make the competition irrelevant
C) Protect the company from ocean pollution
D) Use only blue colors in corporate branding
Correct Answer: B) Create uncontested market space and make the competition
irrelevant
5. What is a "SWOT Analysis"?
A) A tactical military maneuver
B) A framework for identifying Strengths, Weaknesses, Opportunities, and Threats
C) A software for tracking sales
D) A method for cleaning the office
Correct Answer: B) A framework for identifying Strengths, Weaknesses, Opportunities,
and Threats
6. "Core Competencies" are resources and capabilities that:
A) Are common to all companies in an industry
B) Serve as a source of competitive advantage for a firm over its rivals
C) Are the most expensive items on the balance sheet
D) Relate only to the physical building of the company
Correct Answer: B) Serve as a source of competitive advantage for a firm over its rivals
7. The "VRIO" framework is used to evaluate a firm's resources based on:
A) Value, Reach, Innovation, and Originality
B) Value, Rarity, Imitability, and Organization
C) Volume, Return, Interest, and Output
D) Velocity, Risk, Input, and Operation
, Correct Answer: B) Value, Rarity, Imitability, and Organization
8. "Vertical Integration" occurs when a company:
A) Hires more managers than workers
B) Expands its operations into different stages of production (e.g., a manufacturer buying its
supplier)
C) Builds a very tall office building
D) Sells products to other businesses only
Correct Answer: B) Expands its operations into different stages of production (e.g., a
manufacturer buying its supplier)
9. "Horizontal Integration" involves:
A) Acquiring or merging with competitors at the same stage of the value chain
B) Firing all middle management
C) Selling the company's assets to a bank
D) Expanding into a completely unrelated industry
Correct Answer: A) Acquiring or merging with competitors at the same stage of the value
chain
10. What is a "First-Mover Advantage"?
A) Being the first person to leave the office
B) The competitive edge gained by the first significant occupant of a market segment
C) Having the most expensive office in the city
D) Using a new software before it is tested
Correct Answer: B) The competitive edge gained by the first significant occupant of a
market segment
11. "PESTEL Analysis" stands for:
A) Price, Economy, Sales, Tech, Entry, Law
B) Political, Economic, Social, Technological, Environmental, Legal
Competitive Analysis
Strategy Formulation, Industry Dynamics & Rivalry (100 Questions)
1. What is the primary focus of "Strategic Management"?
A) Daily supervision of low-level employees
B) The continuous planning, monitoring, analysis, and assessment of all that is necessary for an
organization to meet its goals and objectives
C) Managing the company's social media accounts
D) Filing annual tax returns
Correct Answer: B) The continuous planning, monitoring, analysis, and assessment of all
that is necessary for an organization to meet its goals and objectives
2. Michael Porter's "Five Forces" framework is used to analyze:
A) The personal strengths of the CEO
B) The level of competition within an industry and its long-term profitability potential
C) The five most expensive products in a market
D) The history of the industrial revolution
Correct Answer: B) The level of competition within an industry and its long-term
profitability potential
3. In the Five Forces model, "Threat of Substitutes" refers to:
A) Competitors lowering their prices
B) Products from other industries that can perform the same function as the industry’s product
C) New employees replacing old ones
D) A company changing its brand name
Correct Answer: B) Products from other industries that can perform the same function as
the industry’s product
,4. A "Blue Ocean Strategy" aims to:
A) Compete intensely in existing markets
B) Create uncontested market space and make the competition irrelevant
C) Protect the company from ocean pollution
D) Use only blue colors in corporate branding
Correct Answer: B) Create uncontested market space and make the competition
irrelevant
5. What is a "SWOT Analysis"?
A) A tactical military maneuver
B) A framework for identifying Strengths, Weaknesses, Opportunities, and Threats
C) A software for tracking sales
D) A method for cleaning the office
Correct Answer: B) A framework for identifying Strengths, Weaknesses, Opportunities,
and Threats
6. "Core Competencies" are resources and capabilities that:
A) Are common to all companies in an industry
B) Serve as a source of competitive advantage for a firm over its rivals
C) Are the most expensive items on the balance sheet
D) Relate only to the physical building of the company
Correct Answer: B) Serve as a source of competitive advantage for a firm over its rivals
7. The "VRIO" framework is used to evaluate a firm's resources based on:
A) Value, Reach, Innovation, and Originality
B) Value, Rarity, Imitability, and Organization
C) Volume, Return, Interest, and Output
D) Velocity, Risk, Input, and Operation
, Correct Answer: B) Value, Rarity, Imitability, and Organization
8. "Vertical Integration" occurs when a company:
A) Hires more managers than workers
B) Expands its operations into different stages of production (e.g., a manufacturer buying its
supplier)
C) Builds a very tall office building
D) Sells products to other businesses only
Correct Answer: B) Expands its operations into different stages of production (e.g., a
manufacturer buying its supplier)
9. "Horizontal Integration" involves:
A) Acquiring or merging with competitors at the same stage of the value chain
B) Firing all middle management
C) Selling the company's assets to a bank
D) Expanding into a completely unrelated industry
Correct Answer: A) Acquiring or merging with competitors at the same stage of the value
chain
10. What is a "First-Mover Advantage"?
A) Being the first person to leave the office
B) The competitive edge gained by the first significant occupant of a market segment
C) Having the most expensive office in the city
D) Using a new software before it is tested
Correct Answer: B) The competitive edge gained by the first significant occupant of a
market segment
11. "PESTEL Analysis" stands for:
A) Price, Economy, Sales, Tech, Entry, Law
B) Political, Economic, Social, Technological, Environmental, Legal
