MBA 620 MIDTERM EXAM ACTUAL EXAM NEWEST 2026 2027
COMPLETE QUESTIONS AND CORRECT DETAILED CORRECT
strategy - 100 correct answer as-where should we compete and how? integrated
set of choices that positions the business in its industry so as to generate superior financial returns
over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a business
performs in its environment compared to competitors
purpose and goal of strategy - 100 correct answer as-create a competitive
advantage, determines where to engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average profitability, above average
return on equity
Five Stages of the Strategic Management Process - 100 correct answer as-Analysis -
understand unique competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - 100 correct answer as-Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
Competitive Advantage - 100 correct answer as-specialized approach to create
value to meet market expectations
,Strategic Decision Making - 100 correct answer as-non-routine, affect entire
organizational functions, commitment of resources needed, difficult to reverse, making a clear choice
among alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - 100 correct answer as-industries and competitors, how it is
evolving, growing and the importance
Internal Analysis - 100 correct answer as-value chain and competitive advantage
Resource Based Analysis - 100 correct answer as-Sustainable competitive
advantage
Strategy vs Tactics - 100 correct answer as-Strategy - long term plan, affects entire
company, difficult to change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - 100 correct answer as-Technology, big data,
rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
how is strategy effectiveness measured - 100 correct answer as-Financial
performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
, SWOT Analysis - 100 correct answer as-Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - 100 correct answer as-Evaluates structural
factors focusing on how they influence industry profitability
Threat of New Entrants - increases competition, captures market share (most important in terms of
profitability), capital requirements, economies of scale, absolute cost advantages, access to inputs,
access to distribution channels, need for product differentiation, switching costs, expected
retaliation, government regulation
Bargaining power of buyers - free to direct their purchases elsewhere, buyer concentration, buyer
volume, switching costs of buyers, buyer information, threat of backward integration, availability of
substitutes
Threat of Substitutes - relative price/performance of substitutes, switching costs of buyers, buyer
propensity to substitute
Bargaining power of suppliers - raise prices by offering a unique product, supplier concentration,
importance of volume to supplier, switching costs of suppliers, differentiation of inputs required,
presence of substitute inputs, cost of input relative to total costs, threat of forward integration
Competitive Rivalry: industry growth rate, fixed costs as percentage of total costs, overcapacity in
industry, low product differentiation, low switching costs, informational complexity, numerous or
equally balanced competition, high strategic stakes, exit barriers
Commodity - 100 correct answer as-cant differentiate, banana
Vertical Integration - 100 correct answer as-taking over more activities in their
supply chain
Triple Bottom Line - 100 correct answer as-economic, social, environmental
Stakeholders of a company - 100 correct answer as-Internal - employees,
managers, board of directors, stockholders
External - suppliers, customers, governments, creditors, interest groups
COMPLETE QUESTIONS AND CORRECT DETAILED CORRECT
strategy - 100 correct answer as-where should we compete and how? integrated
set of choices that positions the business in its industry so as to generate superior financial returns
over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a business
performs in its environment compared to competitors
purpose and goal of strategy - 100 correct answer as-create a competitive
advantage, determines where to engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average profitability, above average
return on equity
Five Stages of the Strategic Management Process - 100 correct answer as-Analysis -
understand unique competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees, activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - 100 correct answer as-Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
Competitive Advantage - 100 correct answer as-specialized approach to create
value to meet market expectations
,Strategic Decision Making - 100 correct answer as-non-routine, affect entire
organizational functions, commitment of resources needed, difficult to reverse, making a clear choice
among alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - 100 correct answer as-industries and competitors, how it is
evolving, growing and the importance
Internal Analysis - 100 correct answer as-value chain and competitive advantage
Resource Based Analysis - 100 correct answer as-Sustainable competitive
advantage
Strategy vs Tactics - 100 correct answer as-Strategy - long term plan, affects entire
company, difficult to change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - 100 correct answer as-Technology, big data,
rapid communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
how is strategy effectiveness measured - 100 correct answer as-Financial
performance metrics
Qualitative assessments
Stakeholder goals (internal and external)
, SWOT Analysis - 100 correct answer as-Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - 100 correct answer as-Evaluates structural
factors focusing on how they influence industry profitability
Threat of New Entrants - increases competition, captures market share (most important in terms of
profitability), capital requirements, economies of scale, absolute cost advantages, access to inputs,
access to distribution channels, need for product differentiation, switching costs, expected
retaliation, government regulation
Bargaining power of buyers - free to direct their purchases elsewhere, buyer concentration, buyer
volume, switching costs of buyers, buyer information, threat of backward integration, availability of
substitutes
Threat of Substitutes - relative price/performance of substitutes, switching costs of buyers, buyer
propensity to substitute
Bargaining power of suppliers - raise prices by offering a unique product, supplier concentration,
importance of volume to supplier, switching costs of suppliers, differentiation of inputs required,
presence of substitute inputs, cost of input relative to total costs, threat of forward integration
Competitive Rivalry: industry growth rate, fixed costs as percentage of total costs, overcapacity in
industry, low product differentiation, low switching costs, informational complexity, numerous or
equally balanced competition, high strategic stakes, exit barriers
Commodity - 100 correct answer as-cant differentiate, banana
Vertical Integration - 100 correct answer as-taking over more activities in their
supply chain
Triple Bottom Line - 100 correct answer as-economic, social, environmental
Stakeholders of a company - 100 correct answer as-Internal - employees,
managers, board of directors, stockholders
External - suppliers, customers, governments, creditors, interest groups
