MGT 6655
Graduate Strategic Management
Quiz 6 Comprehensive
Practice Review
Competitive Dynamics, Non-Market Strategy,
Advanced Digital/AI, Turnaround & Capstone
Georgia Institute of Technology
Scheller College of Business
50 Multiple-Choice Questions | Complete Solutions
2026-2027 Aligned | AACSB Standards
Practice questions for academic review purposes only. Based on publicly available graduate
management curriculum standards and contemporary strategy frameworks.
, MGT 6655 Quiz 6 | Practice Review | 2026
Table of Contents
1. Section 1: Competitive Dynamics, Game Theory & Strategic Moves (Q1-Q10) 3
Section 2: Non-Market Strategy, Institutional Theory & Corporate Political Activity
2. 6
(Q11-Q20)
3. Section 3: Advanced Digital, AI & Platform Ecosystem Strategy (Q21-Q30) 9
4. Section 4: Turnaround, Restructuring, Real Options & Corporate Venturing (Q31-Q40) 12
Section 5: Comprehensive Capstone: ESG, Creating Shared Value & Integrated Case Analysis
5. 15
(Q41-Q50)
Quick Reference: Answer Key
1.B 2.B 3.A 4.B 5.B 6.B 7.B 8.B 9.B 10.B 11.B 12.B 13.B 14.C 15.C 16.B 17.C 18.B 19.B 20.B 21.B 22.B 23.A 24.B
25.B 26.B 27.B 28.A 29.B 30.B 31.B 32.B 33.C 34.B 35.B 36.B 37.B 38.B 39.B 40.B 41.B 42.B 43.B 44.B 45.B
46.B 47.B 48.B 49.B 50.B
Page 1
, MGT 6655 Quiz 6 | Practice Review | 2026
Section 1: Competitive Dynamics, Game Theory & Strategic Moves (Q1-Q10)
Q1: A firm introduces a radically new product category and captures significant market share before
competitors can respond. However, it suffers high costs due to immature supply chains and heavy
customer education expenses. This scenario best illustrates:
A. Second-mover advantage
B. First-mover disadvantage ✔ [CORRECT]
C. Tacit collusion
D. Strategic drift
Correct Answer: B
Rationale: First-mover disadvantage occurs when the pioneer bears the heavy costs of R&D;, supply chain development,
and customer education, allowing later entrants to free-ride and capture market share more efficiently.
Q2: In game theory, the "Prisoner’s Dilemma" explains why two competing firms might engage in a
destructive price war, even though both would be better off maintaining high prices. This outcome is
driven by:
A. The ability to form a legally binding cartel
B. The individual incentive to defect (lower prices) to gain market share, leading to a suboptimal Nash
Equilibrium for both ✔ [CORRECT]
C. The threat of government antitrust intervention
D. Perfect information and infinite trust between competitors
Correct Answer: B
Rationale: The Prisoner's Dilemma highlights how individual rational self-interest (defecting to gain share) leads to a
collectively irrational outcome (lower profits for both), which is the essence of a price war.
Q3: An incumbent airline drastically lowers its ticket prices on a specific route immediately after a
low-cost carrier announces plans to enter that market. This is an example of:
A. Limit pricing as a strategic deterrent to entry ✔ [CORRECT]
B. Predatory pricing aimed at bankrupting the rival
C. Price skimming to maximize early revenues
D. Tacit collusion with the new entrant
Correct Answer: A
Rationale: Limit pricing involves setting prices low enough to signal to potential entrants that the market is not
profitable, thereby deterring entry without necessarily violating antitrust laws (which is the risk with predatory pricing).
Q4: According to the Awareness-Motivation-Capability (AMC) framework, a competitor is most likely to
respond aggressively to a rival's strategic move when:
A. It is unaware of the move, lacks the resources to respond, and sees no strategic importance in the market
B. It clearly perceives the move, has a strong strategic incentive to defend its market position, and
possesses the resources to execute a counterattack ✔ [CORRECT]
C. It is highly aware of the move but lacks the financial resources to respond
D. It has the resources to respond but does not perceive the move as a threat to its core business
Correct Answer: B
Rationale: The AMC framework dictates that competitive response requires all three elements: the competitor must
perceive the move (awareness), have a reason to act (motivation), and possess the resources (capability).
Page 2
Graduate Strategic Management
Quiz 6 Comprehensive
Practice Review
Competitive Dynamics, Non-Market Strategy,
Advanced Digital/AI, Turnaround & Capstone
Georgia Institute of Technology
Scheller College of Business
50 Multiple-Choice Questions | Complete Solutions
2026-2027 Aligned | AACSB Standards
Practice questions for academic review purposes only. Based on publicly available graduate
management curriculum standards and contemporary strategy frameworks.
, MGT 6655 Quiz 6 | Practice Review | 2026
Table of Contents
1. Section 1: Competitive Dynamics, Game Theory & Strategic Moves (Q1-Q10) 3
Section 2: Non-Market Strategy, Institutional Theory & Corporate Political Activity
2. 6
(Q11-Q20)
3. Section 3: Advanced Digital, AI & Platform Ecosystem Strategy (Q21-Q30) 9
4. Section 4: Turnaround, Restructuring, Real Options & Corporate Venturing (Q31-Q40) 12
Section 5: Comprehensive Capstone: ESG, Creating Shared Value & Integrated Case Analysis
5. 15
(Q41-Q50)
Quick Reference: Answer Key
1.B 2.B 3.A 4.B 5.B 6.B 7.B 8.B 9.B 10.B 11.B 12.B 13.B 14.C 15.C 16.B 17.C 18.B 19.B 20.B 21.B 22.B 23.A 24.B
25.B 26.B 27.B 28.A 29.B 30.B 31.B 32.B 33.C 34.B 35.B 36.B 37.B 38.B 39.B 40.B 41.B 42.B 43.B 44.B 45.B
46.B 47.B 48.B 49.B 50.B
Page 1
, MGT 6655 Quiz 6 | Practice Review | 2026
Section 1: Competitive Dynamics, Game Theory & Strategic Moves (Q1-Q10)
Q1: A firm introduces a radically new product category and captures significant market share before
competitors can respond. However, it suffers high costs due to immature supply chains and heavy
customer education expenses. This scenario best illustrates:
A. Second-mover advantage
B. First-mover disadvantage ✔ [CORRECT]
C. Tacit collusion
D. Strategic drift
Correct Answer: B
Rationale: First-mover disadvantage occurs when the pioneer bears the heavy costs of R&D;, supply chain development,
and customer education, allowing later entrants to free-ride and capture market share more efficiently.
Q2: In game theory, the "Prisoner’s Dilemma" explains why two competing firms might engage in a
destructive price war, even though both would be better off maintaining high prices. This outcome is
driven by:
A. The ability to form a legally binding cartel
B. The individual incentive to defect (lower prices) to gain market share, leading to a suboptimal Nash
Equilibrium for both ✔ [CORRECT]
C. The threat of government antitrust intervention
D. Perfect information and infinite trust between competitors
Correct Answer: B
Rationale: The Prisoner's Dilemma highlights how individual rational self-interest (defecting to gain share) leads to a
collectively irrational outcome (lower profits for both), which is the essence of a price war.
Q3: An incumbent airline drastically lowers its ticket prices on a specific route immediately after a
low-cost carrier announces plans to enter that market. This is an example of:
A. Limit pricing as a strategic deterrent to entry ✔ [CORRECT]
B. Predatory pricing aimed at bankrupting the rival
C. Price skimming to maximize early revenues
D. Tacit collusion with the new entrant
Correct Answer: A
Rationale: Limit pricing involves setting prices low enough to signal to potential entrants that the market is not
profitable, thereby deterring entry without necessarily violating antitrust laws (which is the risk with predatory pricing).
Q4: According to the Awareness-Motivation-Capability (AMC) framework, a competitor is most likely to
respond aggressively to a rival's strategic move when:
A. It is unaware of the move, lacks the resources to respond, and sees no strategic importance in the market
B. It clearly perceives the move, has a strong strategic incentive to defend its market position, and
possesses the resources to execute a counterattack ✔ [CORRECT]
C. It is highly aware of the move but lacks the financial resources to respond
D. It has the resources to respond but does not perceive the move as a threat to its core business
Correct Answer: B
Rationale: The AMC framework dictates that competitive response requires all three elements: the competitor must
perceive the move (awareness), have a reason to act (motivation), and possess the resources (capability).
Page 2
