COMMERCE 4PA3 EXAM STUDY GUIDE
NEW SOLUTION MCMASTER UNIVERSITY
FINAL PAPER 2026 COMPLETE SOLUTIONS
AND CORRECT ANSWERS GRADED A+
⩥ game theory. Answer: the study of how people behave in strategic
situations
⩥ prisoner's dilemma. Answer: simple exchange game between two
individuals - point is that there is incentive to turn the other in, if both
act in this way they will suffer
⩥ new economy models. Answer: recognize technological change has
had a fundamental and pervasive impact on industries
⩥ blue ocean strategy. Answer: some firms are able to position their
offerings in such a way as to create value across the traditional barriers
to competition, in effect offering substitute products from within the
same industry
⩥ global industry models. Answer: recognize added complexity when
moving from operating in one country to operating in many countries
,⩥ stakeholders. Answer: individuals and groups who can affect, and are
affected by, the strategic outcomes achieved and who have enforceable
claims on a firm's performance
⩥ dormant stakeholder. Answer: possess power as an attribute - have
low salience but considerable potential to add it with legitimacy/urgency
⩥ discretionary stakeholders. Answer: have neither power nor urgency
but invoke legitimacy
⩥ demanding stakeholders. Answer: present sense of urgency but have
no legitimacy/power, nuisance/bother to management but not dangerous
unless they gain power/legitimacy
⩥ dominant stakeholders. Answer: have legitimacy and power and tend
to have formal mechanisms to exercise them
⩥ dangerous stakeholders. Answer: have power and urgency but no
legitimacy, often desparate moves are characteristics of their position
⩥ dependent stakeholders. Answer: do not possess power, they have
legitimacy/urgency
,⩥ definitive stakeholders. Answer: possess all attributes, when dominant
stakeholders express an urgent claim they move into definitive
stakeholder category
⩥ strategic proposal. Answer: helps identify the relevant business
enviornment and specific conditions on which business should focus
⩥ strategic goals. Answer: establish performance priorities and
expectations that need to be evaluated in your environment analysis
⩥ product market focus. Answer: sets up a bounded environment for the
analysis of demand, competition and so on
⩥ value proposition. Answer: defines tangible benchmark for testing
customer appeal and competitive differentiation
⩥ core activities. Answer: provide basis for identifying cost, control and
flexibility trade-offs that would be sensitive to external trends and
developments
⩥ variable costs. Answer: vary with volume
⩥ fixed costs. Answer: stay the same
, ⩥ macroenvironmnet scanning. Answer: includes maintaining a
concurrent awareness of events/institutions surrounding the relevant
business environment - essentially an issue-seeking process
⩥ demand, supply, competition, government. Answer: classified
environmental forces into 4 categories
⩥ demand. Answer: test of linkage of proposal is whether it anticipates
opportunities and creates advantages in the way that it addresses
customer requirements and market trends
⩥ supply. Answer: further test the linkage between strategic ideas lies in
the potential for advantage and disadvantage in supply conditions trends
⩥ competition. Answer: test of linkage of a strategic proposal is in
whether it pursues competitive opportunities and offesets competitive
challenges and vulnerabilities
⩥ distinctive competence. Answer: highlights core activities that a
business can perform better than competitors
⩥ core skills. Answer: describes collective skills accumulated by a
management or professional team as they worked together over time in a
common pursuit
NEW SOLUTION MCMASTER UNIVERSITY
FINAL PAPER 2026 COMPLETE SOLUTIONS
AND CORRECT ANSWERS GRADED A+
⩥ game theory. Answer: the study of how people behave in strategic
situations
⩥ prisoner's dilemma. Answer: simple exchange game between two
individuals - point is that there is incentive to turn the other in, if both
act in this way they will suffer
⩥ new economy models. Answer: recognize technological change has
had a fundamental and pervasive impact on industries
⩥ blue ocean strategy. Answer: some firms are able to position their
offerings in such a way as to create value across the traditional barriers
to competition, in effect offering substitute products from within the
same industry
⩥ global industry models. Answer: recognize added complexity when
moving from operating in one country to operating in many countries
,⩥ stakeholders. Answer: individuals and groups who can affect, and are
affected by, the strategic outcomes achieved and who have enforceable
claims on a firm's performance
⩥ dormant stakeholder. Answer: possess power as an attribute - have
low salience but considerable potential to add it with legitimacy/urgency
⩥ discretionary stakeholders. Answer: have neither power nor urgency
but invoke legitimacy
⩥ demanding stakeholders. Answer: present sense of urgency but have
no legitimacy/power, nuisance/bother to management but not dangerous
unless they gain power/legitimacy
⩥ dominant stakeholders. Answer: have legitimacy and power and tend
to have formal mechanisms to exercise them
⩥ dangerous stakeholders. Answer: have power and urgency but no
legitimacy, often desparate moves are characteristics of their position
⩥ dependent stakeholders. Answer: do not possess power, they have
legitimacy/urgency
,⩥ definitive stakeholders. Answer: possess all attributes, when dominant
stakeholders express an urgent claim they move into definitive
stakeholder category
⩥ strategic proposal. Answer: helps identify the relevant business
enviornment and specific conditions on which business should focus
⩥ strategic goals. Answer: establish performance priorities and
expectations that need to be evaluated in your environment analysis
⩥ product market focus. Answer: sets up a bounded environment for the
analysis of demand, competition and so on
⩥ value proposition. Answer: defines tangible benchmark for testing
customer appeal and competitive differentiation
⩥ core activities. Answer: provide basis for identifying cost, control and
flexibility trade-offs that would be sensitive to external trends and
developments
⩥ variable costs. Answer: vary with volume
⩥ fixed costs. Answer: stay the same
, ⩥ macroenvironmnet scanning. Answer: includes maintaining a
concurrent awareness of events/institutions surrounding the relevant
business environment - essentially an issue-seeking process
⩥ demand, supply, competition, government. Answer: classified
environmental forces into 4 categories
⩥ demand. Answer: test of linkage of proposal is whether it anticipates
opportunities and creates advantages in the way that it addresses
customer requirements and market trends
⩥ supply. Answer: further test the linkage between strategic ideas lies in
the potential for advantage and disadvantage in supply conditions trends
⩥ competition. Answer: test of linkage of a strategic proposal is in
whether it pursues competitive opportunities and offesets competitive
challenges and vulnerabilities
⩥ distinctive competence. Answer: highlights core activities that a
business can perform better than competitors
⩥ core skills. Answer: describes collective skills accumulated by a
management or professional team as they worked together over time in a
common pursuit
