Business Administration Level 3 -MGT
8803 - Business Strategy Test
Questions All Solved Correct 2026
Graded A+
Role of Planning in Firm - Answer Planning (primary) -> organizing & staffing -> leading ->
controlling
External Context for Planning - Answer regulators | partners & shareholders | competitors |
suppliers | tech, econ, labor, society | communities | customers
Internal Context for Planning - Answer mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets | intellectual property
Planning is important because it... - Answer 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 - Answer the unknowable; uncertainty that remains...important in
assessing risk
Hierarchical (Tall) Organizational Structure - Answer many layers of middle mgt | senior mgrs
make most operational decisions | information flows from top-down | stable environment
Flat (Networked) Organizational Structure - Answer front-line employees empowered to
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
decentralized decision making | dynamic environment
Strategic Plans - Answer 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 - Answer 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 - Answer 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
SMART - Answer Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy - Answer achieve superior performance in marketplace
Strategy - Answer goal-directed actions a firm takes to gain & sustain superior performance
relative to competitors.
Competitive advantage - Answer 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 Strategy - Answer 1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
Cost Leadership - Answer lowest-cost producer in industry | pricing at or below industry avg
while leveraging a low "cost" advantage
Differentiation - Answer 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 - Answer battery technology, autonomous driving, high
performance, supercharger network, wow factor
Focus strategy - Answer establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
Vision - Answer mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
, Mission - Answer how firm will achieve vision | product OR customer market focus
Core Values - Answer guiding principles of firm | support company's vision, shape culture, &
reflect company's identity & personality
Business Model Framework - Answer Value Delivery
Value Creation
Value Capture
(DCC)
Value Delivery - Answer customer-centric | specific customer needs being addressed by
product/service | how customers are organized into segments | marketing channels | how
relationships are formed with customers
Value Creation - Answer creates value & supports product/service post-sales | focus on
business ops | core competencies | resources required for activities/capabilities | strategic
resources
Strategic resources - Answer assets of the firm (tangible, intangible) that are important to a
firm's competitive advantage
Core competencies - Answer unique capabilities of a firm to enable delivery & support of
competitive advantage
Key activities - Answer most important things the business does to be successful
Value Capture - Answer expenses, revenues, capital requirements, cost structure
Revenue models - Answer retail | transaction | rental/lease | usage | advertising &
sponsorships | affiliate marketing | brokerage | subscription/membership | licensing
Technology-fueled NEW Revenue Models - Answer data driven (ex: FB, LinkedIn) & e-
commerce:
*sharing economy (AirBNB)
*aggregators
*virtual goods
*in-app purchases
8803 - Business Strategy Test
Questions All Solved Correct 2026
Graded A+
Role of Planning in Firm - Answer Planning (primary) -> organizing & staffing -> leading ->
controlling
External Context for Planning - Answer regulators | partners & shareholders | competitors |
suppliers | tech, econ, labor, society | communities | customers
Internal Context for Planning - Answer mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets | intellectual property
Planning is important because it... - Answer 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 - Answer the unknowable; uncertainty that remains...important in
assessing risk
Hierarchical (Tall) Organizational Structure - Answer many layers of middle mgt | senior mgrs
make most operational decisions | information flows from top-down | stable environment
Flat (Networked) Organizational Structure - Answer front-line employees empowered to
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
decentralized decision making | dynamic environment
Strategic Plans - Answer 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 - Answer 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 - Answer 1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
SMART - Answer Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy - Answer achieve superior performance in marketplace
Strategy - Answer goal-directed actions a firm takes to gain & sustain superior performance
relative to competitors.
Competitive advantage - Answer 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 Strategy - Answer 1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
Cost Leadership - Answer lowest-cost producer in industry | pricing at or below industry avg
while leveraging a low "cost" advantage
Differentiation - Answer 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 - Answer battery technology, autonomous driving, high
performance, supercharger network, wow factor
Focus strategy - Answer establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
Vision - Answer mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
, Mission - Answer how firm will achieve vision | product OR customer market focus
Core Values - Answer guiding principles of firm | support company's vision, shape culture, &
reflect company's identity & personality
Business Model Framework - Answer Value Delivery
Value Creation
Value Capture
(DCC)
Value Delivery - Answer customer-centric | specific customer needs being addressed by
product/service | how customers are organized into segments | marketing channels | how
relationships are formed with customers
Value Creation - Answer creates value & supports product/service post-sales | focus on
business ops | core competencies | resources required for activities/capabilities | strategic
resources
Strategic resources - Answer assets of the firm (tangible, intangible) that are important to a
firm's competitive advantage
Core competencies - Answer unique capabilities of a firm to enable delivery & support of
competitive advantage
Key activities - Answer most important things the business does to be successful
Value Capture - Answer expenses, revenues, capital requirements, cost structure
Revenue models - Answer retail | transaction | rental/lease | usage | advertising &
sponsorships | affiliate marketing | brokerage | subscription/membership | licensing
Technology-fueled NEW Revenue Models - Answer data driven (ex: FB, LinkedIn) & e-
commerce:
*sharing economy (AirBNB)
*aggregators
*virtual goods
*in-app purchases
