MNG 3702 EXAM PACK 2026 COMPLETE
STUDY GUIDE WITH CORRECT ANSWERS ||
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MNG3702 Strategic Management: Comprehensive Exam Preparation Pack
Section 1: The Nature of Strategic Management
1. What is the primary purpose of strategic management?
A) To manage daily operational tasks efficiently.
B) To create competitive advantage and achieve long-term organizational goals.
C) To increase shareholder dividends every quarter.
D) To write detailed business plans for department heads.
2. Which of the following best describes 'strategy'?
A) A detailed budget for the next financial year.
B) A comprehensive plan for achieving a major or overall aim.
C) A list of marketing activities for the upcoming product launch.
D) The organization's policy on employee conduct.
3. The three core areas of strategic management are:
A) Planning, Organizing, Controlling.
B) Analysis, Formulation, Implementation.
C) Marketing, Finance, Operations.
D) Vision, Mission, Objectives.
4. A key stakeholder in a mining company would MOST LIKELY be:
A) A competing technology firm.
B) The local communities and environmental groups.
C) A supplier of office stationery.
D) A retail customer buying a single product.
,5. Corporate governance is primarily concerned with:
A) Maximizing profits at any cost.
B) The systems and processes by which companies are directed and controlled.
C) The day-to-day management of staff.
D) Creating aggressive marketing strategies.
Section 2: Strategic Direction (Vision, Mission, Goals)
6. A 'Vision Statement' typically describes:
A) The organization's current market position.
B) The specific, measurable targets for the next year.
C) The future the organization wants to create; its ultimate long-term goal.
D) The products and services it offers.
7. A 'Mission Statement' is best described as:
A) A financial projection for the next five years.
B) The organization's reason for being, its core purpose.
C) A list of the company's main competitors.
D) The same as its vision statement.
8. Strategic objectives should be:
A) Vague and open to interpretation.
B) Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
C) Solely focused on financial outcomes.
D) Changed on a weekly basis.
9. Which of the following is an example of a strategic objective?
A) "Improve customer satisfaction."
B) "Increase market share in South Africa by 15% within three years."
C) "Be a good corporate citizen."
D) "Hire more staff."
10. The 'Values' of an organization refer to its:
A) Total asset worth.
B) Core beliefs and ethical principles that guide behavior.
C) Share price on the stock market.
D) Annual revenue.
, Section 3: External Environmental Analysis
11. A PESTEL analysis is used to scan the:
A) Internal strengths and weaknesses of the organization.
B) Macro-environment (Political, Economic, Social, Technological,
Environmental, Legal).
C) Competitive landscape and industry structure.
D) Financial performance of the company.
12. In Porter's Five Forces model, the threat of new entrants is HIGH when:
A) Capital requirements to enter the industry are low.
B) Customers are loyal to existing brands.
C) The industry is highly regulated by the government.
D) Existing firms have strong economies of scale.
13. The 'bargaining power of buyers' is likely to be high when:
A) There are few buyers and the product is standardized.
B) The product is unique and has few substitutes.
C) Buyers are fragmented and purchase in small quantities.
D) The cost of switching suppliers is high.
14. Industry analysis is crucial because it helps strategists to:
A) Understand the internal cost structure of the firm.
B) Understand the profitability potential and competitive intensity of an industry.
C) Write the company's vision statement.
D) Set employee performance targets.
15. Which of the following is a 'Social' factor in a PESTEL analysis?
A) Changes in interest rates.
B) New data protection laws (e.g., POPI Act).
C) Demographic shifts and changing lifestyle trends.
D) Developments in artificial intelligence.
Section 4: Internal Environmental Analysis
16. The VRIO framework is used to analyse:
A) The external industry environment.
STUDY GUIDE WITH CORRECT ANSWERS ||
100% GUARANTEED PASS <RECENT
VERSION>
MNG3702 Strategic Management: Comprehensive Exam Preparation Pack
Section 1: The Nature of Strategic Management
1. What is the primary purpose of strategic management?
A) To manage daily operational tasks efficiently.
B) To create competitive advantage and achieve long-term organizational goals.
C) To increase shareholder dividends every quarter.
D) To write detailed business plans for department heads.
2. Which of the following best describes 'strategy'?
A) A detailed budget for the next financial year.
B) A comprehensive plan for achieving a major or overall aim.
C) A list of marketing activities for the upcoming product launch.
D) The organization's policy on employee conduct.
3. The three core areas of strategic management are:
A) Planning, Organizing, Controlling.
B) Analysis, Formulation, Implementation.
C) Marketing, Finance, Operations.
D) Vision, Mission, Objectives.
4. A key stakeholder in a mining company would MOST LIKELY be:
A) A competing technology firm.
B) The local communities and environmental groups.
C) A supplier of office stationery.
D) A retail customer buying a single product.
,5. Corporate governance is primarily concerned with:
A) Maximizing profits at any cost.
B) The systems and processes by which companies are directed and controlled.
C) The day-to-day management of staff.
D) Creating aggressive marketing strategies.
Section 2: Strategic Direction (Vision, Mission, Goals)
6. A 'Vision Statement' typically describes:
A) The organization's current market position.
B) The specific, measurable targets for the next year.
C) The future the organization wants to create; its ultimate long-term goal.
D) The products and services it offers.
7. A 'Mission Statement' is best described as:
A) A financial projection for the next five years.
B) The organization's reason for being, its core purpose.
C) A list of the company's main competitors.
D) The same as its vision statement.
8. Strategic objectives should be:
A) Vague and open to interpretation.
B) Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
C) Solely focused on financial outcomes.
D) Changed on a weekly basis.
9. Which of the following is an example of a strategic objective?
A) "Improve customer satisfaction."
B) "Increase market share in South Africa by 15% within three years."
C) "Be a good corporate citizen."
D) "Hire more staff."
10. The 'Values' of an organization refer to its:
A) Total asset worth.
B) Core beliefs and ethical principles that guide behavior.
C) Share price on the stock market.
D) Annual revenue.
, Section 3: External Environmental Analysis
11. A PESTEL analysis is used to scan the:
A) Internal strengths and weaknesses of the organization.
B) Macro-environment (Political, Economic, Social, Technological,
Environmental, Legal).
C) Competitive landscape and industry structure.
D) Financial performance of the company.
12. In Porter's Five Forces model, the threat of new entrants is HIGH when:
A) Capital requirements to enter the industry are low.
B) Customers are loyal to existing brands.
C) The industry is highly regulated by the government.
D) Existing firms have strong economies of scale.
13. The 'bargaining power of buyers' is likely to be high when:
A) There are few buyers and the product is standardized.
B) The product is unique and has few substitutes.
C) Buyers are fragmented and purchase in small quantities.
D) The cost of switching suppliers is high.
14. Industry analysis is crucial because it helps strategists to:
A) Understand the internal cost structure of the firm.
B) Understand the profitability potential and competitive intensity of an industry.
C) Write the company's vision statement.
D) Set employee performance targets.
15. Which of the following is a 'Social' factor in a PESTEL analysis?
A) Changes in interest rates.
B) New data protection laws (e.g., POPI Act).
C) Demographic shifts and changing lifestyle trends.
D) Developments in artificial intelligence.
Section 4: Internal Environmental Analysis
16. The VRIO framework is used to analyse:
A) The external industry environment.
