©THEBRIGHTSTARS 2024
SGMA 591 Midterm Exam Questions With
Correct Answers
CLASS 1
What does strategic management deal with? - answer✔Major initiatives, taken by general
managers on behalf of owners, involving utilization of resources, to enhance performance of firm
in their external environments
What is strategy about? - answer✔HOW: to compete better or differently than competitors, to
gain sustainable competitive advantage, to outcompete rivals, to respond to external
opportunities and threats, to manage your resources and value chain activities, to improve the
financial and market performance
CHAPTER 1 - answer✔CHAPTER 1
Draw the chart for common elements in successful strategies - answer✔Draw the chart for
common elements in successful strategies
What is strategy? - answer✔the overall plan for delaying resources to establish a favourable
position
What is tactic? What is an example of this? - answer✔A scheme for a specific action. Tactics
are the maneuvers necessary to win battles, strategy is concerned with winning the war.
What are the three common goals that strategic decisions should have? - answer✔they are
important, they involve a significant commitment of resources and they are not easily reversible.
What is corporate planning or long term planning? - answer✔Used to guide the long term
development of a firm
What helps with corporate planning? - answer✔Macroeconomics forecasts
What is the typical format of corporate planning? - answer✔Five-year corporate planning
document that set out goals and objectives, forecast key economic trends, establish priorities for
different products and business areas of the firm and allocate capital expenditures
, ©THEBRIGHTSTARS 2024
What is strategic management? - answer✔associated with increasing focus on competition as
the central characteristics of the business environment and competitive advantage as the primary
goal
What is a resource based view? - answer✔theoretical perspective that highlights the role of
resources and capabilities of the firm become regarded as the main source of competitive
advantage and the primary basis for formulating a strategy
What do common definitions define strategy today as? - answer✔focused on goals, allocation
of resources, implies consistency, integration and cohesiveness
What is corporate strategy? - answer✔defines the scope of the firm in terms of industries and
markets it operates within
What is business strategy? - answer✔concerned with how the firm competes within a particular
industry or market
How can you tell the difference between corporate and business strategy? - answer✔Corporate-
typically the responsibility of the top management team and corporate strategy staff, Business-
primarily the responsibility of the divisional management
Draw the sources of superior profitability chart (corporate strat vs business strat) -
answer✔Draw the sources of superior profitability chart (corporate strat vs business strat)
Where are the three places that strategy is located? - answer✔heads of CEOs, senior managers
and other members of the org, top management's articulations like speeches and written
documents, decisions through which strategy is enacted
What is the hierarchy of strategy statements? - answer✔Mission statement, a statement of
principles/values (what we believe in and how we will behave), the vision statement (what we
want to be), the strategy statement (what our competitive game plan will look like)
What is the strategy hierarchy. - answer✔What is the strategy hierarchy.
What is the competitive game plan elements of a strategy statement? - answer✔Objectives,
scope (where we will compete) and advantage (how we will compete)
What is intended strategy? - answer✔conceived by top management team (less a product of
rational deliberation and more an outcome of negotiation, bargaining and compromise)
What is realized strategy? - answer✔the actual strategy that is implemented - it is only partially
related to what was intended
What is planned emergence? - answer✔balance between the stability and predictability of a
company's business environment
, ©THEBRIGHTSTARS 2024
For strategy to be successful... - answer✔it must be consistent with the firm's external &
internal environments - its goals, values, resources, capabilities, structures and systems
What role does strategy perform? - answer✔decision support, coordinating device, target,
animation and orientation
What is stakeholder analysis? - answer✔useful tool for identifying, understanding and
prioritizing the needs of key stakeholders
What is the four group result of the power/interest grid? - answer✔Crowd, subjects, context
setters and players
What should you do with players? - answer✔Manage closely (they have an interest and
significant power)
What should you do with subjects? - answer✔Keep informed (they have an interest but little
power)
What should you do with context setters? - answer✔Keep satisfied (they have power but little
interest)
What should you do with crowds? - answer✔Monitor (neither interested nor have power)
What are the main arguments to prioritize shareholder interests and seeking to maximize profits?
- answer✔Competition, the market for corporate control and convergence of shareholder
interest
CLASS 2 - answer✔CLASS 2
What is a business environment? - answer✔consists of all the external influences that affects its
decisions and performance
What is the basic premise that underlies an industry analysis? - answer✔it is determined by the
industry's underlying economic characteristics
What are the the determinants of industry profit? - answer✔the value of the product to
consumers, the intensity of competition and the bargaining power of the producers relative to
their suppliers
What are the four core factors of the PEST analysis? - answer✔Political, economic, social and
technological
What are some key factors under political? - answer✔Changes in government economic policy,
changes in legal requirements and changes in government ownership
What are some key factors under economic? - answer✔changes in level of economic activity,
changes in wage rates/ income distribution and changes in exchange rates
SGMA 591 Midterm Exam Questions With
Correct Answers
CLASS 1
What does strategic management deal with? - answer✔Major initiatives, taken by general
managers on behalf of owners, involving utilization of resources, to enhance performance of firm
in their external environments
What is strategy about? - answer✔HOW: to compete better or differently than competitors, to
gain sustainable competitive advantage, to outcompete rivals, to respond to external
opportunities and threats, to manage your resources and value chain activities, to improve the
financial and market performance
CHAPTER 1 - answer✔CHAPTER 1
Draw the chart for common elements in successful strategies - answer✔Draw the chart for
common elements in successful strategies
What is strategy? - answer✔the overall plan for delaying resources to establish a favourable
position
What is tactic? What is an example of this? - answer✔A scheme for a specific action. Tactics
are the maneuvers necessary to win battles, strategy is concerned with winning the war.
What are the three common goals that strategic decisions should have? - answer✔they are
important, they involve a significant commitment of resources and they are not easily reversible.
What is corporate planning or long term planning? - answer✔Used to guide the long term
development of a firm
What helps with corporate planning? - answer✔Macroeconomics forecasts
What is the typical format of corporate planning? - answer✔Five-year corporate planning
document that set out goals and objectives, forecast key economic trends, establish priorities for
different products and business areas of the firm and allocate capital expenditures
, ©THEBRIGHTSTARS 2024
What is strategic management? - answer✔associated with increasing focus on competition as
the central characteristics of the business environment and competitive advantage as the primary
goal
What is a resource based view? - answer✔theoretical perspective that highlights the role of
resources and capabilities of the firm become regarded as the main source of competitive
advantage and the primary basis for formulating a strategy
What do common definitions define strategy today as? - answer✔focused on goals, allocation
of resources, implies consistency, integration and cohesiveness
What is corporate strategy? - answer✔defines the scope of the firm in terms of industries and
markets it operates within
What is business strategy? - answer✔concerned with how the firm competes within a particular
industry or market
How can you tell the difference between corporate and business strategy? - answer✔Corporate-
typically the responsibility of the top management team and corporate strategy staff, Business-
primarily the responsibility of the divisional management
Draw the sources of superior profitability chart (corporate strat vs business strat) -
answer✔Draw the sources of superior profitability chart (corporate strat vs business strat)
Where are the three places that strategy is located? - answer✔heads of CEOs, senior managers
and other members of the org, top management's articulations like speeches and written
documents, decisions through which strategy is enacted
What is the hierarchy of strategy statements? - answer✔Mission statement, a statement of
principles/values (what we believe in and how we will behave), the vision statement (what we
want to be), the strategy statement (what our competitive game plan will look like)
What is the strategy hierarchy. - answer✔What is the strategy hierarchy.
What is the competitive game plan elements of a strategy statement? - answer✔Objectives,
scope (where we will compete) and advantage (how we will compete)
What is intended strategy? - answer✔conceived by top management team (less a product of
rational deliberation and more an outcome of negotiation, bargaining and compromise)
What is realized strategy? - answer✔the actual strategy that is implemented - it is only partially
related to what was intended
What is planned emergence? - answer✔balance between the stability and predictability of a
company's business environment
, ©THEBRIGHTSTARS 2024
For strategy to be successful... - answer✔it must be consistent with the firm's external &
internal environments - its goals, values, resources, capabilities, structures and systems
What role does strategy perform? - answer✔decision support, coordinating device, target,
animation and orientation
What is stakeholder analysis? - answer✔useful tool for identifying, understanding and
prioritizing the needs of key stakeholders
What is the four group result of the power/interest grid? - answer✔Crowd, subjects, context
setters and players
What should you do with players? - answer✔Manage closely (they have an interest and
significant power)
What should you do with subjects? - answer✔Keep informed (they have an interest but little
power)
What should you do with context setters? - answer✔Keep satisfied (they have power but little
interest)
What should you do with crowds? - answer✔Monitor (neither interested nor have power)
What are the main arguments to prioritize shareholder interests and seeking to maximize profits?
- answer✔Competition, the market for corporate control and convergence of shareholder
interest
CLASS 2 - answer✔CLASS 2
What is a business environment? - answer✔consists of all the external influences that affects its
decisions and performance
What is the basic premise that underlies an industry analysis? - answer✔it is determined by the
industry's underlying economic characteristics
What are the the determinants of industry profit? - answer✔the value of the product to
consumers, the intensity of competition and the bargaining power of the producers relative to
their suppliers
What are the four core factors of the PEST analysis? - answer✔Political, economic, social and
technological
What are some key factors under political? - answer✔Changes in government economic policy,
changes in legal requirements and changes in government ownership
What are some key factors under economic? - answer✔changes in level of economic activity,
changes in wage rates/ income distribution and changes in exchange rates
