MNG3701: STRATEGIC MANAGEMENT | 100% VERIFIED EXAM QUESTIONS
& ANSWERS | LATEST 2026/2027 VERSION | PASS GUARANTEE
1. What is the classical approach to management? ANSWER The classical
approach (1900–1930s) includes scientific management (Taylor),
administrative theory (Fayol), and bureaucratic management (Weber). It
focuses on efficiency, productivity, and formal organisational structures.
2. Who is known as the "Father of Scientific Management"? ANSWER
Frederick Winslow Taylor. He developed time-and-motion studies and the
differential piece-rate system to improve worker productivity.
3. What are Fayol's 14 principles of management? ANSWER Division of work,
authority and responsibility, discipline, unity of command, unity of direction,
subordination of individual interests, remuneration, centralisation, scalar
chain, order, equity, stability of tenure, initiative, and esprit de corps.
4. What is the human relations approach to management? ANSWER
Developed from the Hawthorne Studies (Elton Mayo, 1927–1932), it
emphasises that social and psychological factors significantly influence worker
productivity, not just physical conditions.
5. What were the key findings of the Hawthorne Studies? ANSWER Workers
respond to group norms and social pressures; informal groups affect
productivity; attention and recognition improve performance; and worker
attitudes are more important than physical conditions.
6. What is the systems approach to management? ANSWER Views the
organisation as an open system that interacts with its environment, consisting
of inputs, transformation processes, outputs, and feedback loops.
7. What is the contingency approach to management? ANSWER There is no
single best way to manage; the optimal approach depends on the specific
situation, including technology, environment, and organisational size.
8. What is Total Quality Management (TQM)? ANSWER A management
philosophy focused on continuous improvement, customer satisfaction,
,employee involvement, and process improvement. Pioneered by Deming,
Juran, and Crosby.
9. What are the key principles of TQM? ANSWER Customer focus, continuous
improvement (Kaizen), employee empowerment, process approach, and fact-
based decision-making.
10. What is re-engineering in management? ANSWER Radical redesign of
business processes to achieve dramatic improvements in performance
(Hammer & Champy, 1993).
11. What is the learning organisation? ANSWER An organisation skilled at
creating, acquiring, and transferring knowledge, and at modifying its behaviour
to reflect new knowledge (Senge, 1990).
12. What are Senge's five disciplines of a learning organisation? ANSWER
Systems thinking, personal mastery, mental models, building shared vision, and
team learning.
13. What is knowledge management? ANSWER The process of capturing,
distributing, and effectively using organisational knowledge to create
competitive advantage.
14. What is the difference between tacit and explicit knowledge? ANSWER
Tacit knowledge is personal, context-specific, and difficult to formalise (e.g.,
skills, experiences). Explicit knowledge can be easily articulated, codified, and
shared (e.g., manuals, documents).
15. What is responsible management? ANSWER Management that integrates
economic, social, and environmental concerns into business operations and
decision-making (triple bottom line: people, planet, profit).
16. What is the triple bottom line (TBL)? ANSWER A framework measuring
organisational success across three dimensions: economic (profit), social
(people), and environmental (planet) performance.
17. What is corporate social responsibility (CSR)? ANSWER A business's
commitment to operating in an economically, socially, and environmentally
sustainable manner while recognising the interests of stakeholders.
18. What is stakeholder theory? ANSWER Organisations should consider the
interests of all stakeholders (employees, customers, suppliers, communities,
shareholders) rather than focusing solely on shareholders.
, 19. What is sustainable development? ANSWER Development that meets the
needs of the present without compromising the ability of future generations to
meet their own needs (Brundtland Commission, 1987).
20. What is the difference between CSR and corporate sustainability?
ANSWER CSR focuses on voluntary social and environmental initiatives, while
corporate sustainability integrates these concerns into core business strategy
for long-term value creation.
21. What is shared value creation? ANSWER A concept by Porter and Kramer
(2011) where companies generate economic value in a way that also creates
value for society by addressing its needs and challenges.
22. How does responsible management relate to strategic management?
ANSWER Responsible management requires strategic integration of
sustainability and stakeholder concerns into the strategic planning process,
ensuring long-term viability and legitimacy.
23. What is the UN Global Compact? ANSWER A voluntary initiative based on
CEO commitments to implement universal sustainability principles in human
rights, labour, environment, and anti-corruption.
24. What is integrated reporting? ANSWER A concise communication about
how an organisation's strategy, governance, performance, and prospects lead
to the creation of value over time, including financial, manufactured,
intellectual, human, social, and natural capital.
25. What is green management? ANSWER Management practices that
minimise negative environmental impact through waste reduction, energy
efficiency, sustainable sourcing, and eco-friendly product design.
SECTION B: STRATEGIC MANAGEMENT FUNDAMENTALS (Questions 26–75)
Lesson 2: The Role of Strategic Management
26. What is strategy? ANSWER A comprehensive plan guiding an organisation
to achieve its long-term goals and objectives by allocating resources and
positioning itself relative to competitors and the environment.
27. What is strategic planning? ANSWER The process of defining an
organisation's strategy or direction and making decisions on allocating
resources to pursue that strategy.
& ANSWERS | LATEST 2026/2027 VERSION | PASS GUARANTEE
1. What is the classical approach to management? ANSWER The classical
approach (1900–1930s) includes scientific management (Taylor),
administrative theory (Fayol), and bureaucratic management (Weber). It
focuses on efficiency, productivity, and formal organisational structures.
2. Who is known as the "Father of Scientific Management"? ANSWER
Frederick Winslow Taylor. He developed time-and-motion studies and the
differential piece-rate system to improve worker productivity.
3. What are Fayol's 14 principles of management? ANSWER Division of work,
authority and responsibility, discipline, unity of command, unity of direction,
subordination of individual interests, remuneration, centralisation, scalar
chain, order, equity, stability of tenure, initiative, and esprit de corps.
4. What is the human relations approach to management? ANSWER
Developed from the Hawthorne Studies (Elton Mayo, 1927–1932), it
emphasises that social and psychological factors significantly influence worker
productivity, not just physical conditions.
5. What were the key findings of the Hawthorne Studies? ANSWER Workers
respond to group norms and social pressures; informal groups affect
productivity; attention and recognition improve performance; and worker
attitudes are more important than physical conditions.
6. What is the systems approach to management? ANSWER Views the
organisation as an open system that interacts with its environment, consisting
of inputs, transformation processes, outputs, and feedback loops.
7. What is the contingency approach to management? ANSWER There is no
single best way to manage; the optimal approach depends on the specific
situation, including technology, environment, and organisational size.
8. What is Total Quality Management (TQM)? ANSWER A management
philosophy focused on continuous improvement, customer satisfaction,
,employee involvement, and process improvement. Pioneered by Deming,
Juran, and Crosby.
9. What are the key principles of TQM? ANSWER Customer focus, continuous
improvement (Kaizen), employee empowerment, process approach, and fact-
based decision-making.
10. What is re-engineering in management? ANSWER Radical redesign of
business processes to achieve dramatic improvements in performance
(Hammer & Champy, 1993).
11. What is the learning organisation? ANSWER An organisation skilled at
creating, acquiring, and transferring knowledge, and at modifying its behaviour
to reflect new knowledge (Senge, 1990).
12. What are Senge's five disciplines of a learning organisation? ANSWER
Systems thinking, personal mastery, mental models, building shared vision, and
team learning.
13. What is knowledge management? ANSWER The process of capturing,
distributing, and effectively using organisational knowledge to create
competitive advantage.
14. What is the difference between tacit and explicit knowledge? ANSWER
Tacit knowledge is personal, context-specific, and difficult to formalise (e.g.,
skills, experiences). Explicit knowledge can be easily articulated, codified, and
shared (e.g., manuals, documents).
15. What is responsible management? ANSWER Management that integrates
economic, social, and environmental concerns into business operations and
decision-making (triple bottom line: people, planet, profit).
16. What is the triple bottom line (TBL)? ANSWER A framework measuring
organisational success across three dimensions: economic (profit), social
(people), and environmental (planet) performance.
17. What is corporate social responsibility (CSR)? ANSWER A business's
commitment to operating in an economically, socially, and environmentally
sustainable manner while recognising the interests of stakeholders.
18. What is stakeholder theory? ANSWER Organisations should consider the
interests of all stakeholders (employees, customers, suppliers, communities,
shareholders) rather than focusing solely on shareholders.
, 19. What is sustainable development? ANSWER Development that meets the
needs of the present without compromising the ability of future generations to
meet their own needs (Brundtland Commission, 1987).
20. What is the difference between CSR and corporate sustainability?
ANSWER CSR focuses on voluntary social and environmental initiatives, while
corporate sustainability integrates these concerns into core business strategy
for long-term value creation.
21. What is shared value creation? ANSWER A concept by Porter and Kramer
(2011) where companies generate economic value in a way that also creates
value for society by addressing its needs and challenges.
22. How does responsible management relate to strategic management?
ANSWER Responsible management requires strategic integration of
sustainability and stakeholder concerns into the strategic planning process,
ensuring long-term viability and legitimacy.
23. What is the UN Global Compact? ANSWER A voluntary initiative based on
CEO commitments to implement universal sustainability principles in human
rights, labour, environment, and anti-corruption.
24. What is integrated reporting? ANSWER A concise communication about
how an organisation's strategy, governance, performance, and prospects lead
to the creation of value over time, including financial, manufactured,
intellectual, human, social, and natural capital.
25. What is green management? ANSWER Management practices that
minimise negative environmental impact through waste reduction, energy
efficiency, sustainable sourcing, and eco-friendly product design.
SECTION B: STRATEGIC MANAGEMENT FUNDAMENTALS (Questions 26–75)
Lesson 2: The Role of Strategic Management
26. What is strategy? ANSWER A comprehensive plan guiding an organisation
to achieve its long-term goals and objectives by allocating resources and
positioning itself relative to competitors and the environment.
27. What is strategic planning? ANSWER The process of defining an
organisation's strategy or direction and making decisions on allocating
resources to pursue that strategy.
