SEVI Practice Exam Questions and
Answers Latest Versions 2026 Graded
A+
Define strategy in a business context.
Strategy is a coordinated set of actions designed to achieve competitive
advantage by creating superior value for customers while positioning
the firm uniquely relative to competitors.
What is the ultimate goal of a good strategy?
to create sustainable competitive advantage that leads to superior long
term performance and profitability
What are the three core elements of a good strategy?
Diagnosis - Identifies the key challenge
Guiding Policy - Overall approach to address the challenge
Coherent Actions - Specific coordinated steps that implement the policy
What is a competitive advantage
When a firm creates more economic value than its rivals by either
offering greater benefits at the same cost or similar benefits at a lower
cost.
What determines whether a firm has competitive parity, advantage or
disadvantage
Relative value creation compared to competitors
, What makes competitive advantage sustainable?
When competitors cannot easily imitate, substitute, or neutralize the
source of advantage over time.
Why must firms establish unique strategic positioning?
To avoid direct competition and price wars and to make imitation
difficult.
Define Stakeholders
Individuals or groups who can affect or are affected by a firm's strategic
outcomes.
Difference between internal and external stakeholders?
Internal: Employees, managers, owners
External: Customers, suppliers, government, communities, creditors
What three attributes determine stakeholder importance?
Power
Legitimacy
Urgency
What key question do strategic leaders continuously ask?
"How can we create and sustain competitive advantage while satisfying
key stakeholders?"
What should a vision statement communicate?
A compelling future state that inspires employees and guides long-term
direction.
What should a mission statement communicate?
Answers Latest Versions 2026 Graded
A+
Define strategy in a business context.
Strategy is a coordinated set of actions designed to achieve competitive
advantage by creating superior value for customers while positioning
the firm uniquely relative to competitors.
What is the ultimate goal of a good strategy?
to create sustainable competitive advantage that leads to superior long
term performance and profitability
What are the three core elements of a good strategy?
Diagnosis - Identifies the key challenge
Guiding Policy - Overall approach to address the challenge
Coherent Actions - Specific coordinated steps that implement the policy
What is a competitive advantage
When a firm creates more economic value than its rivals by either
offering greater benefits at the same cost or similar benefits at a lower
cost.
What determines whether a firm has competitive parity, advantage or
disadvantage
Relative value creation compared to competitors
, What makes competitive advantage sustainable?
When competitors cannot easily imitate, substitute, or neutralize the
source of advantage over time.
Why must firms establish unique strategic positioning?
To avoid direct competition and price wars and to make imitation
difficult.
Define Stakeholders
Individuals or groups who can affect or are affected by a firm's strategic
outcomes.
Difference between internal and external stakeholders?
Internal: Employees, managers, owners
External: Customers, suppliers, government, communities, creditors
What three attributes determine stakeholder importance?
Power
Legitimacy
Urgency
What key question do strategic leaders continuously ask?
"How can we create and sustain competitive advantage while satisfying
key stakeholders?"
What should a vision statement communicate?
A compelling future state that inspires employees and guides long-term
direction.
What should a mission statement communicate?
