MGT 202 FINAL EXAM QUESTIONS
AND ANSWERS
What is Hindsight Bias? - Answer- The tendency to see events as more predictable
after they have occurred.
What is Framing Bias? - Answer- Making decisions based on how a problem is
presented.
What is Escalation of Commitment Bias? - Answer- Being overly invested in a decision
despite negative information.
What is Categorical Thinking Bias? - Answer- Classifying people or information into
buckets based on observed characteristics.
What is a major advantage of group decision-making? - Answer- Knowledge diversity
and different perspectives.
What is a disadvantage of group decision-making? - Answer- Groupthink, where a
cohesive group avoids considering alternatives.
What are symptoms of groupthink? - Answer- Collective overconfidence, pressure to
conform, and self-censorship.
What is the impact of groupthink on decision-making? - Answer- It prioritizes group
harmony at the expense of good decision-making.
What is the primary goal of strategic positioning? - Answer- To achieve sustainable
competitive advantage by preserving what is distinctive about a company.
What are the three levels of strategy? - Answer- 1) Corporate-level strategy, 2)
Business-level strategy, 3) Functional-level strategy.
What question does corporate-level strategy address? - Answer- What business or
businesses should we be in?
How does Disney exemplify corporate-level strategy? - Answer- Disney owns movies,
theme parks, and streaming services (Disney+).
, What is the focus of business-level strategy? - Answer- How should we compete in this
industry?
How does Disney compete in the industry? - Answer- By creating high-quality, family-
friendly content and strong brand storytelling.
What is the purpose of functional-level strategy? - Answer- To support business-level
strategies through specific functions like marketing and production.
What are the five steps in the strategic management process? - Answer- 1) Establish
mission, vision, and values, 2) Assess current reality, 3) Formulate strategies, 4)
Implement strategies, 5) Maintain strategic control.
What defines a sustainable competitive advantage? - Answer- When other companies
cannot duplicate the value delivered to customers.
What does SWOT analysis assess? - Answer- Internal strengths and weaknesses, and
external opportunities and threats.
What does VRIO stand for? - Answer- Value, Rarity, Imitability, Organization.
What is forecasting in strategic management? - Answer- Predicting the future through
trend analysis and contingency planning.
What is benchmarking? - Answer- Comparing a company's performance with that of
high-performing organizations.
What are the three overall types of corporate strategy? - Answer- 1) Growth Strategy, 2)
Stability Strategy, 3) Defensive Strategy.
What does the BCG Matrix evaluate? - Answer- Strategic business units based on their
business growth rates and market share.
What do 'Dogs' represent in the BCG Matrix? - Answer- Divest or low market growth
rate and low market share.
What do 'Cash Cows' represent in the BCG Matrix? - Answer- Redirect profits or low
market growth rate but high market share.
What do 'Question Marks' represent in the BCG Matrix? - Answer- Invest cautiously or
high market growth rate but low market share.
What do 'Stars' represent in the BCG Matrix? - Answer- Invest or high market growth
rate and high market share.
AND ANSWERS
What is Hindsight Bias? - Answer- The tendency to see events as more predictable
after they have occurred.
What is Framing Bias? - Answer- Making decisions based on how a problem is
presented.
What is Escalation of Commitment Bias? - Answer- Being overly invested in a decision
despite negative information.
What is Categorical Thinking Bias? - Answer- Classifying people or information into
buckets based on observed characteristics.
What is a major advantage of group decision-making? - Answer- Knowledge diversity
and different perspectives.
What is a disadvantage of group decision-making? - Answer- Groupthink, where a
cohesive group avoids considering alternatives.
What are symptoms of groupthink? - Answer- Collective overconfidence, pressure to
conform, and self-censorship.
What is the impact of groupthink on decision-making? - Answer- It prioritizes group
harmony at the expense of good decision-making.
What is the primary goal of strategic positioning? - Answer- To achieve sustainable
competitive advantage by preserving what is distinctive about a company.
What are the three levels of strategy? - Answer- 1) Corporate-level strategy, 2)
Business-level strategy, 3) Functional-level strategy.
What question does corporate-level strategy address? - Answer- What business or
businesses should we be in?
How does Disney exemplify corporate-level strategy? - Answer- Disney owns movies,
theme parks, and streaming services (Disney+).
, What is the focus of business-level strategy? - Answer- How should we compete in this
industry?
How does Disney compete in the industry? - Answer- By creating high-quality, family-
friendly content and strong brand storytelling.
What is the purpose of functional-level strategy? - Answer- To support business-level
strategies through specific functions like marketing and production.
What are the five steps in the strategic management process? - Answer- 1) Establish
mission, vision, and values, 2) Assess current reality, 3) Formulate strategies, 4)
Implement strategies, 5) Maintain strategic control.
What defines a sustainable competitive advantage? - Answer- When other companies
cannot duplicate the value delivered to customers.
What does SWOT analysis assess? - Answer- Internal strengths and weaknesses, and
external opportunities and threats.
What does VRIO stand for? - Answer- Value, Rarity, Imitability, Organization.
What is forecasting in strategic management? - Answer- Predicting the future through
trend analysis and contingency planning.
What is benchmarking? - Answer- Comparing a company's performance with that of
high-performing organizations.
What are the three overall types of corporate strategy? - Answer- 1) Growth Strategy, 2)
Stability Strategy, 3) Defensive Strategy.
What does the BCG Matrix evaluate? - Answer- Strategic business units based on their
business growth rates and market share.
What do 'Dogs' represent in the BCG Matrix? - Answer- Divest or low market growth
rate and low market share.
What do 'Cash Cows' represent in the BCG Matrix? - Answer- Redirect profits or low
market growth rate but high market share.
What do 'Question Marks' represent in the BCG Matrix? - Answer- Invest cautiously or
high market growth rate but low market share.
What do 'Stars' represent in the BCG Matrix? - Answer- Invest or high market growth
rate and high market share.
