SGMA 591: STRATEGY AND GLOBAL MANAGEMENT
FINAL STUDY GUIDE 2026 EXAM
QUESTIONS WITH DETAILED ANSWERS
Chapter 1 -Concept of strategy
What's the problem with strategy? (2) - ANSWER-- too many corporate executives, including
CEOs cannot summarize their company strategy
- If they can, they are not sure if people throughout the ranks understand it in the same way they
do
Two components of strategy: - ANSWER-- the mission
- the vision
The mission statement: - ANSWER-- A mission statement focuses on today and what an
organization does to achieve its vision
- It is what a company does (the core of the business)
The vision statement: - ANSWER-- Focuses on tomorrow and gives an organization direction
Strategy: - ANSWER-- Is a company's competitive game plan that helps the company figure out
the best way to get from here to there or find a path (which may be unforeseeable) to achieve its
vision
The basic elements of a strategy statement: (3) - ANSWER-- Corporate objectives (ends)
- Scope (domain)
- Competitive advantage (means)
The corporate objective: - ANSWER-- Defines the ends that the strategy is designed to achieve
within a specific time frame
- A single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time bound
,The scope: - ANSWER-- Is the domain of the business, the part of the business landscape in
which your company will operate
The competitive advantage: - ANSWER-- Is the essence of your strategy. it determines what you
will do differently or better than the competition to achieve your objective
What is objective? (more specifically) - ANSWER-- A single precise goal that will drive the
company
- SMART: specific, measurable, actionable, realistic, time bound
What is objective not? (more specifically) - ANSWER-- The same as the mission or vision
- Generic (ex. we seek to grow profitability)
What is Scope? (more specifically) (4) - ANSWER-Where the company competes along three
dimensions
- Product diversification (horizontal expansion)
- Vertical integration (forward or backward expansion)
- Geographic scope (geographic or global expansion)
+ clear about where the company will not compete
Vertical integration: - ANSWER-- forward: closer to the consumer (ex. Tesla owns its own
stores)
- backward: closer to the manufacturing side (Tesla battery)
What is scope not? - ANSWER-- A precise prescription for what to do within the specified
bounds. In fact, the scope of a company encourages experimentation and initiative
Restructuring and break-ups: corporate growth through divestitures, splits, and spin-offs -
ANSWER-lecture 1 slide 16
divestitures: selling a subsidiary
, splits: splitting into two companies
spin off: type of divesture where the spin off company is supposed to be worth more on it's own
than as part of a whole
Two parts of competitive advantage: - ANSWER-- unique activities
- value proposition
Unique activities: - ANSWER-- A description of how internal activities must be aligned so that
only your company can deliver the customer value proposition
Value proposition: - ANSWER-- Is what makes a business unique and potentially better than the
competition. It is made up of features and benefits.
Competitive advantage example: - ANSWER-Walmart:
- stripped away department store amenities
- put fewer sales people on the floor
- served customers in isolated rural towns which everyone else was ignoring
- Promise national brands rather than second-tier brands
Unique activities and value proposition example: - ANSWER-- IKEA
How is strategy actually made? (3) - ANSWER-First, intended strategy: carefully thought out by
top management (top down, emphasize commitment)
Second, emergent strategy: an unplanned approach to overcome the unexpected challenges and
opportunities (bottom up, emphasize flexibility)
Lastly, realized strategy : the actual strategy that is implemented
Tesla's intended and realized strategy: - ANSWER-1. build sports car
2. Use that money to build an affordable car
3. Use that money to build an even more affordable car
4. While doing above, also provide zero emission electric power generation options
Why strategy matters? - ANSWER-- Strategy has a direct impact on financial performance
The balance score card: - ANSWER-- Financial
- Internal business processes
FINAL STUDY GUIDE 2026 EXAM
QUESTIONS WITH DETAILED ANSWERS
Chapter 1 -Concept of strategy
What's the problem with strategy? (2) - ANSWER-- too many corporate executives, including
CEOs cannot summarize their company strategy
- If they can, they are not sure if people throughout the ranks understand it in the same way they
do
Two components of strategy: - ANSWER-- the mission
- the vision
The mission statement: - ANSWER-- A mission statement focuses on today and what an
organization does to achieve its vision
- It is what a company does (the core of the business)
The vision statement: - ANSWER-- Focuses on tomorrow and gives an organization direction
Strategy: - ANSWER-- Is a company's competitive game plan that helps the company figure out
the best way to get from here to there or find a path (which may be unforeseeable) to achieve its
vision
The basic elements of a strategy statement: (3) - ANSWER-- Corporate objectives (ends)
- Scope (domain)
- Competitive advantage (means)
The corporate objective: - ANSWER-- Defines the ends that the strategy is designed to achieve
within a specific time frame
- A single precise goal that will drive the company
- SMART: specific, measurable, actionable, realistic, time bound
,The scope: - ANSWER-- Is the domain of the business, the part of the business landscape in
which your company will operate
The competitive advantage: - ANSWER-- Is the essence of your strategy. it determines what you
will do differently or better than the competition to achieve your objective
What is objective? (more specifically) - ANSWER-- A single precise goal that will drive the
company
- SMART: specific, measurable, actionable, realistic, time bound
What is objective not? (more specifically) - ANSWER-- The same as the mission or vision
- Generic (ex. we seek to grow profitability)
What is Scope? (more specifically) (4) - ANSWER-Where the company competes along three
dimensions
- Product diversification (horizontal expansion)
- Vertical integration (forward or backward expansion)
- Geographic scope (geographic or global expansion)
+ clear about where the company will not compete
Vertical integration: - ANSWER-- forward: closer to the consumer (ex. Tesla owns its own
stores)
- backward: closer to the manufacturing side (Tesla battery)
What is scope not? - ANSWER-- A precise prescription for what to do within the specified
bounds. In fact, the scope of a company encourages experimentation and initiative
Restructuring and break-ups: corporate growth through divestitures, splits, and spin-offs -
ANSWER-lecture 1 slide 16
divestitures: selling a subsidiary
, splits: splitting into two companies
spin off: type of divesture where the spin off company is supposed to be worth more on it's own
than as part of a whole
Two parts of competitive advantage: - ANSWER-- unique activities
- value proposition
Unique activities: - ANSWER-- A description of how internal activities must be aligned so that
only your company can deliver the customer value proposition
Value proposition: - ANSWER-- Is what makes a business unique and potentially better than the
competition. It is made up of features and benefits.
Competitive advantage example: - ANSWER-Walmart:
- stripped away department store amenities
- put fewer sales people on the floor
- served customers in isolated rural towns which everyone else was ignoring
- Promise national brands rather than second-tier brands
Unique activities and value proposition example: - ANSWER-- IKEA
How is strategy actually made? (3) - ANSWER-First, intended strategy: carefully thought out by
top management (top down, emphasize commitment)
Second, emergent strategy: an unplanned approach to overcome the unexpected challenges and
opportunities (bottom up, emphasize flexibility)
Lastly, realized strategy : the actual strategy that is implemented
Tesla's intended and realized strategy: - ANSWER-1. build sports car
2. Use that money to build an affordable car
3. Use that money to build an even more affordable car
4. While doing above, also provide zero emission electric power generation options
Why strategy matters? - ANSWER-- Strategy has a direct impact on financial performance
The balance score card: - ANSWER-- Financial
- Internal business processes
