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Strategic Management Exam Questions and
Answers 100% Pass
What is competitive advantage? - ANS a firm that formulates and implements a strategy that
leads to superior performance relative to other competitors in the same industry or the
industry average
What are the levels of strategy formulation? - ANS corporate, business, functional
What is the difference between corporate and business strategies? - ANS Corporate strategy
is formulated at headquarters and business strategy occurs within strategic business units
Mission statements - ANS describes what the organization actually does --the products and
services it plans to provide and the markets in which it plans to compete
Strategy as planned emergence - ANS describes any unplanned strategic initiative
undertaken by mid-level employees of their own volition
Mintzberg's Planning Framework - ANS Design intended strategy; when unpredictable events
occur unrealized strategies; bottom-up emergent strategy; realized strategy
PESTEL Framework - ANS Allows firm to look at external environment: political, economic,
socio-cultural, technological, ecological, legal; factors are interdependent
Economic factors - ANS - growth rates
- interest rates
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
- levels of employment
- price stability
- currency exchange rates
socio-cultural factors - ANS society's cultural norms, values, and cultures; ex) ppl become
more health conscience
technological factors - ANS capture the application of knowledge to create new processes
and products
ecological factors - ANS concern broad environmental issues such as natural environment,
global warming, and sustainable economic growth
legal factors - ANS outcomes of the political processes manifested in laws, mandates,
regulations, and court decisions
Industry - ANS group of companies offering similar products or services
structure-conduct-performance (SCP) model - ANS theoretical framework, developed in
industrial-organization economics, explains differences in industry performance; underlying
industry structure determines firm conduct
fragmented industry structures - ANS small firms trying to generate low profitability
consolidated industry structures - ANS dominated by a few firms which are highly profitable
Four main industry types - ANS 1) perfect competition
2) monopolistic competition
3) oligopoly
4) monopoly
©FYNDLAY 2
Strategic Management Exam Questions and
Answers 100% Pass
What is competitive advantage? - ANS a firm that formulates and implements a strategy that
leads to superior performance relative to other competitors in the same industry or the
industry average
What are the levels of strategy formulation? - ANS corporate, business, functional
What is the difference between corporate and business strategies? - ANS Corporate strategy
is formulated at headquarters and business strategy occurs within strategic business units
Mission statements - ANS describes what the organization actually does --the products and
services it plans to provide and the markets in which it plans to compete
Strategy as planned emergence - ANS describes any unplanned strategic initiative
undertaken by mid-level employees of their own volition
Mintzberg's Planning Framework - ANS Design intended strategy; when unpredictable events
occur unrealized strategies; bottom-up emergent strategy; realized strategy
PESTEL Framework - ANS Allows firm to look at external environment: political, economic,
socio-cultural, technological, ecological, legal; factors are interdependent
Economic factors - ANS - growth rates
- interest rates
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
- levels of employment
- price stability
- currency exchange rates
socio-cultural factors - ANS society's cultural norms, values, and cultures; ex) ppl become
more health conscience
technological factors - ANS capture the application of knowledge to create new processes
and products
ecological factors - ANS concern broad environmental issues such as natural environment,
global warming, and sustainable economic growth
legal factors - ANS outcomes of the political processes manifested in laws, mandates,
regulations, and court decisions
Industry - ANS group of companies offering similar products or services
structure-conduct-performance (SCP) model - ANS theoretical framework, developed in
industrial-organization economics, explains differences in industry performance; underlying
industry structure determines firm conduct
fragmented industry structures - ANS small firms trying to generate low profitability
consolidated industry structures - ANS dominated by a few firms which are highly profitable
Four main industry types - ANS 1) perfect competition
2) monopolistic competition
3) oligopoly
4) monopoly
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