MAN 4720 STUDY 2026 EXAM GUIDED QUESTIONS
AND ANSWERS SURE A+
✔✔Economies of Scale - Definition - ✔✔Cost advantages from producing large
quantities.
✔✔Example of Economies of Scale - ✔✔A company lowering costs by mass-producing
goods.
✔✔Blue Ocean Strategy Balance - Definition - ✔✔Balancing cost control with innovation
and creativity.
✔✔Example of Blue Ocean Strategy Balance - ✔✔A firm centralizing costs while
decentralizing innovation.
✔✔ Organizational Design - Definition - ✔✔The process of creating a company's
structure, including roles, responsibilities, and workflows to achieve strategy.
✔✔Example of Organizational Design - ✔✔Amazon uses decentralized "two-pizza
teams" to stay innovative and efficient.
✔✔Organizational Inertia - Definition - ✔✔Resistance to change due to existing
routines, culture, or systems.
, ✔✔Example of Organizational Inertia - ✔✔Kodak failed to adapt to digital cameras
because it was too tied to its film business.
✔✔Organizational Structures - Definition - ✔✔The formal arrangement of jobs and
authority in an organization (functional, divisional, matrix, etc.).
✔✔Example of Organizational Structures - ✔✔Apple uses a functional structure to
maintain product consistency.
✔✔Strategic & Financial Controls - Definition - ✔✔Systems used to evaluate
performance: strategic = long-term, financial = short-term.
✔✔Example of Strategic & Financial Controls - ✔✔A company tracks profits (financial)
and innovation progress (strategic).
✔✔Mission - Definition - ✔✔The firm's purpose and what it does.
✔✔Example of Mission - ✔✔Tesla's mission is to accelerate the world's transition to
sustainable energy.
✔✔Vision - Definition - ✔✔What the organization aspires to become in the future.
✔✔Example of Vision - ✔✔Disney aims to be the world's leading entertainment
provider.
✔✔Organizational Culture - Definition - ✔✔Shared values, beliefs, norms, and
behaviors within an organization.
✔✔Example of Organizational Culture - ✔✔Google promotes innovation with open
offices and creativity.
✔✔Market for Corporate Control - Definition - ✔✔External governance where
underperforming firms can be taken over.
✔✔Example of Market for Corporate Control - ✔✔Investors buy struggling firms and
replace management.
✔✔Leveraged Buyout (LBO) - Definition - ✔✔Acquiring a company using large amounts
of borrowed money.
✔✔Example of Leveraged Buyout (LBO) - ✔✔Private equity firms like KKR use debt to
acquire companies.
AND ANSWERS SURE A+
✔✔Economies of Scale - Definition - ✔✔Cost advantages from producing large
quantities.
✔✔Example of Economies of Scale - ✔✔A company lowering costs by mass-producing
goods.
✔✔Blue Ocean Strategy Balance - Definition - ✔✔Balancing cost control with innovation
and creativity.
✔✔Example of Blue Ocean Strategy Balance - ✔✔A firm centralizing costs while
decentralizing innovation.
✔✔ Organizational Design - Definition - ✔✔The process of creating a company's
structure, including roles, responsibilities, and workflows to achieve strategy.
✔✔Example of Organizational Design - ✔✔Amazon uses decentralized "two-pizza
teams" to stay innovative and efficient.
✔✔Organizational Inertia - Definition - ✔✔Resistance to change due to existing
routines, culture, or systems.
, ✔✔Example of Organizational Inertia - ✔✔Kodak failed to adapt to digital cameras
because it was too tied to its film business.
✔✔Organizational Structures - Definition - ✔✔The formal arrangement of jobs and
authority in an organization (functional, divisional, matrix, etc.).
✔✔Example of Organizational Structures - ✔✔Apple uses a functional structure to
maintain product consistency.
✔✔Strategic & Financial Controls - Definition - ✔✔Systems used to evaluate
performance: strategic = long-term, financial = short-term.
✔✔Example of Strategic & Financial Controls - ✔✔A company tracks profits (financial)
and innovation progress (strategic).
✔✔Mission - Definition - ✔✔The firm's purpose and what it does.
✔✔Example of Mission - ✔✔Tesla's mission is to accelerate the world's transition to
sustainable energy.
✔✔Vision - Definition - ✔✔What the organization aspires to become in the future.
✔✔Example of Vision - ✔✔Disney aims to be the world's leading entertainment
provider.
✔✔Organizational Culture - Definition - ✔✔Shared values, beliefs, norms, and
behaviors within an organization.
✔✔Example of Organizational Culture - ✔✔Google promotes innovation with open
offices and creativity.
✔✔Market for Corporate Control - Definition - ✔✔External governance where
underperforming firms can be taken over.
✔✔Example of Market for Corporate Control - ✔✔Investors buy struggling firms and
replace management.
✔✔Leveraged Buyout (LBO) - Definition - ✔✔Acquiring a company using large amounts
of borrowed money.
✔✔Example of Leveraged Buyout (LBO) - ✔✔Private equity firms like KKR use debt to
acquire companies.
