MNG3701: STRATEGIC MANAGEMENT EVALUATION PORTFOLIO | COMPREHENSIVE
EXAM PREP QUESTIONS & ANSWER GUIDELINES | LATEST 2026/2027 EDITION
1. Which of the following best defines strategic management?
A) Day-to-day operational decisions in a firm
B) The set of managerial decisions and actions that determines the long-run
performance of a corporation
C) The process of hiring and training employees
D) Managing financial resources of the firm
ANSWER : B
2. The strategic management process begins with:
A) Strategy formulation
B) Environmental scanning
C) Strategy implementation
D) Evaluation and control
ANSWER : B
3. Which of the following is NOT a phase of the strategic management process?
A) Environmental scanning
B) Strategy formulation
C) Human resource planning
D) Strategy implementation
ANSWER : C
4. A firm's mission statement should primarily address:
A) How profits will be distributed
B) The fundamental purpose and reason for the organization's existence
C) The short-term financial goals of the company
D) The specific tactics for entering new markets
ANSWER : B
5. What distinguishes intended strategy from realized strategy?
A) Intended strategy is what managers plan; realized strategy is what
actually occurs
, B) Intended strategy focuses on competitors; realized strategy focuses on
customers
C) They are identical in practice
D) Intended strategy is short-term; realized strategy is long-term
ANSWER : A
6. Corporate governance refers to:
A) Government regulation of corporations
B) The relationship among the board of directors, top management, and
shareholders
C) Internal financial auditing procedures
D) Marketing strategies used by large firms
ANSWER : B
7. The concept of 'strategic intent' refers to:
A) A firm's desire to reach a specific competitive position over time
B) Short-term operational plans
C) The intent to acquire competitor firms
D) Plans to enter international markets
ANSWER : A
8. Which level of strategy deals with the overall direction of a company?
A) Business-level strategy
B) Functional-level strategy
C) Corporate-level strategy
D) Operational-level strategy
ANSWER : C
9. A strategic decision is typically characterized by:
A) Being routine and programmable
B) Being long-term, having significant resource implications, and affecting
the whole organization
C) Focusing on daily operations
D) Involving only middle management
ANSWER : B
10. The concept of 'emergent strategy' was developed by:
A) Michael Porter
B) Henry Mintzberg
, C) Igor Ansoff
D) Peter Drucker
ANSWER : B
SECTION: EXTERNAL ENVIRONMENT ANALYSIS
11. PESTEL analysis is used to examine:
A) Internal organizational strengths
B) The macro-environmental factors affecting an organization
C) Competitor strategies
D) Financial ratios
ANSWER : B
12. In Porter's Five Forces model, 'threat of new entrants' is reduced by:
A) High switching costs for customers
B) Low capital requirements
C) Absence of economies of scale
D) Easy access to distribution channels
ANSWER : A
13. Which of Porter's Five Forces relates to the ability of customers to put the
firm under pressure?
A) Threat of substitutes
B) Bargaining power of buyers
C) Rivalry among competitors
D) Bargaining power of suppliers
ANSWER : B
14. An industry is considered attractive in Porter's framework when:
A) All five forces are strong
B) All five forces are weak
C) Substitutes are readily available
D) Buyers have high bargaining power
ANSWER : B
15. A 'strategic group' in industry analysis refers to:
A) The top management team of a company
B) Companies within an industry following similar strategies
C) A group of firms that have merged
, D) Firms operating in different industries
ANSWER : B
16. Environmental uncertainty refers to:
A) Unpredictability of environmental factors facing an organization
B) Lack of financial resources
C) Unclear organizational structure
D) Ambiguous product specifications
ANSWER : A
17. Which of the following is an example of a macro-environmental political
factor?
A) Inflation rates
B) Government trade policies
C) Technological innovation
D) Demographic changes
ANSWER : B
18. Industry life cycle stages in order are:
A) Growth, introduction, maturity, decline
B) Introduction, growth, maturity, decline
C) Maturity, growth, introduction, decline
D) Introduction, maturity, growth, decline
ANSWER : B
19. A high threat of substitute products indicates:
A) Industry profitability is likely to be high
B) Industry profitability is likely to be low
C) Buyers have weak bargaining power
D) Entry barriers are high
ANSWER : B
20. Scanning the environment means:
A) Collecting and evaluating information about external forces that may
affect the organization
B) Reviewing internal financial statements
C) Monitoring employee performance
D) Analysing product quality control
ANSWER : A
EXAM PREP QUESTIONS & ANSWER GUIDELINES | LATEST 2026/2027 EDITION
1. Which of the following best defines strategic management?
A) Day-to-day operational decisions in a firm
B) The set of managerial decisions and actions that determines the long-run
performance of a corporation
C) The process of hiring and training employees
D) Managing financial resources of the firm
ANSWER : B
2. The strategic management process begins with:
A) Strategy formulation
B) Environmental scanning
C) Strategy implementation
D) Evaluation and control
ANSWER : B
3. Which of the following is NOT a phase of the strategic management process?
A) Environmental scanning
B) Strategy formulation
C) Human resource planning
D) Strategy implementation
ANSWER : C
4. A firm's mission statement should primarily address:
A) How profits will be distributed
B) The fundamental purpose and reason for the organization's existence
C) The short-term financial goals of the company
D) The specific tactics for entering new markets
ANSWER : B
5. What distinguishes intended strategy from realized strategy?
A) Intended strategy is what managers plan; realized strategy is what
actually occurs
, B) Intended strategy focuses on competitors; realized strategy focuses on
customers
C) They are identical in practice
D) Intended strategy is short-term; realized strategy is long-term
ANSWER : A
6. Corporate governance refers to:
A) Government regulation of corporations
B) The relationship among the board of directors, top management, and
shareholders
C) Internal financial auditing procedures
D) Marketing strategies used by large firms
ANSWER : B
7. The concept of 'strategic intent' refers to:
A) A firm's desire to reach a specific competitive position over time
B) Short-term operational plans
C) The intent to acquire competitor firms
D) Plans to enter international markets
ANSWER : A
8. Which level of strategy deals with the overall direction of a company?
A) Business-level strategy
B) Functional-level strategy
C) Corporate-level strategy
D) Operational-level strategy
ANSWER : C
9. A strategic decision is typically characterized by:
A) Being routine and programmable
B) Being long-term, having significant resource implications, and affecting
the whole organization
C) Focusing on daily operations
D) Involving only middle management
ANSWER : B
10. The concept of 'emergent strategy' was developed by:
A) Michael Porter
B) Henry Mintzberg
, C) Igor Ansoff
D) Peter Drucker
ANSWER : B
SECTION: EXTERNAL ENVIRONMENT ANALYSIS
11. PESTEL analysis is used to examine:
A) Internal organizational strengths
B) The macro-environmental factors affecting an organization
C) Competitor strategies
D) Financial ratios
ANSWER : B
12. In Porter's Five Forces model, 'threat of new entrants' is reduced by:
A) High switching costs for customers
B) Low capital requirements
C) Absence of economies of scale
D) Easy access to distribution channels
ANSWER : A
13. Which of Porter's Five Forces relates to the ability of customers to put the
firm under pressure?
A) Threat of substitutes
B) Bargaining power of buyers
C) Rivalry among competitors
D) Bargaining power of suppliers
ANSWER : B
14. An industry is considered attractive in Porter's framework when:
A) All five forces are strong
B) All five forces are weak
C) Substitutes are readily available
D) Buyers have high bargaining power
ANSWER : B
15. A 'strategic group' in industry analysis refers to:
A) The top management team of a company
B) Companies within an industry following similar strategies
C) A group of firms that have merged
, D) Firms operating in different industries
ANSWER : B
16. Environmental uncertainty refers to:
A) Unpredictability of environmental factors facing an organization
B) Lack of financial resources
C) Unclear organizational structure
D) Ambiguous product specifications
ANSWER : A
17. Which of the following is an example of a macro-environmental political
factor?
A) Inflation rates
B) Government trade policies
C) Technological innovation
D) Demographic changes
ANSWER : B
18. Industry life cycle stages in order are:
A) Growth, introduction, maturity, decline
B) Introduction, growth, maturity, decline
C) Maturity, growth, introduction, decline
D) Introduction, maturity, growth, decline
ANSWER : B
19. A high threat of substitute products indicates:
A) Industry profitability is likely to be high
B) Industry profitability is likely to be low
C) Buyers have weak bargaining power
D) Entry barriers are high
ANSWER : B
20. Scanning the environment means:
A) Collecting and evaluating information about external forces that may
affect the organization
B) Reviewing internal financial statements
C) Monitoring employee performance
D) Analysing product quality control
ANSWER : A
