MGT 8803 - Business Strategy EXAM Questions
with 100% Correct Answers | Verified | Updated
(Actual Exam) 2026
Save
Terms in this set (110)
Role of Planning in Firm Planning (primary) -> organizing & staffing ->
leading -> controlling
External Context for Planning regulators | partners & shareholders |
competitors | suppliers | tech, econ, labor,
society | communities | customers
Internal Context for Planning mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets
| intellectual property
Planning is important because it... 1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty the unknowable; uncertainty that
remains...important in assessing risk
,Hierarchical (Tall) Organizational many layers of middle mgt | senior mgrs make
Structure most operational decisions | information flows
from top-down | stable environment
Flat (Networked) Organizational front-line employees empowered to make
Structure decisions | information flows top-down AND
bottom-up | few levels of middle mgt |
decentralized decision making | dynamic
environment
Strategic Plans 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain
competitive advantage
5. driven by mgt's vision, mission, values
Functional Plans 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
Tactical/Operations Plans 1. narrow, specific to firm
2. allocation of specific resources to specific
tasks or operations
SMART Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy achieve superior performance in marketplace
, Strategy goal-directed actions a firm takes to gain &
sustain superior performance relative to
competitors.
Competitive advantage superior performance relative to other
competitors in same industry OR industry
average | temporary
*people prefer your brand over another's so they
are willing to pay more (ie, Apple)
Elements of Good Business 1. diagnosis of competitive challenge
Strategy 2. guiding policy to address competitive
challenge
3. set of coherent actions to implement
Cost Leadership lowest-cost producer in industry | pricing at or
below industry avg while leveraging a low "cost"
advantage
Differentiation economic value created is greater than
competitors | uniqueness in an industry with
broad market | making products unique to allow
charging premium price
How Tesla does Differentiation battery technology, autonomous driving, high
performance, supercharger network, wow factor
Focus strategy establish either a cost leadership OR
differentiation competitive advantage but
focused in a narrow market segment (ex: Rolex,
Louis Vuitton)
Vision mgt's description of business model, technology,
workforce, strategic positioning, and goals | for
inspiring employees & stakeholders
with 100% Correct Answers | Verified | Updated
(Actual Exam) 2026
Save
Terms in this set (110)
Role of Planning in Firm Planning (primary) -> organizing & staffing ->
leading -> controlling
External Context for Planning regulators | partners & shareholders |
competitors | suppliers | tech, econ, labor,
society | communities | customers
Internal Context for Planning mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets
| intellectual property
Planning is important because it... 1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty the unknowable; uncertainty that
remains...important in assessing risk
,Hierarchical (Tall) Organizational many layers of middle mgt | senior mgrs make
Structure most operational decisions | information flows
from top-down | stable environment
Flat (Networked) Organizational front-line employees empowered to make
Structure decisions | information flows top-down AND
bottom-up | few levels of middle mgt |
decentralized decision making | dynamic
environment
Strategic Plans 1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain
competitive advantage
5. driven by mgt's vision, mission, values
Functional Plans 1. implementing strategic plans
2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
Tactical/Operations Plans 1. narrow, specific to firm
2. allocation of specific resources to specific
tasks or operations
SMART Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy achieve superior performance in marketplace
, Strategy goal-directed actions a firm takes to gain &
sustain superior performance relative to
competitors.
Competitive advantage superior performance relative to other
competitors in same industry OR industry
average | temporary
*people prefer your brand over another's so they
are willing to pay more (ie, Apple)
Elements of Good Business 1. diagnosis of competitive challenge
Strategy 2. guiding policy to address competitive
challenge
3. set of coherent actions to implement
Cost Leadership lowest-cost producer in industry | pricing at or
below industry avg while leveraging a low "cost"
advantage
Differentiation economic value created is greater than
competitors | uniqueness in an industry with
broad market | making products unique to allow
charging premium price
How Tesla does Differentiation battery technology, autonomous driving, high
performance, supercharger network, wow factor
Focus strategy establish either a cost leadership OR
differentiation competitive advantage but
focused in a narrow market segment (ex: Rolex,
Louis Vuitton)
Vision mgt's description of business model, technology,
workforce, strategic positioning, and goals | for
inspiring employees & stakeholders
