MGT8803 - Strategy Exam Questions and Correct Answers Latest Update 2024-2025 (Rated A+)
Growth, Stability, Renewal - Answers Three "grand" strategies
planning, organizing, leading, controlling - Answers 4 functions of management
end result of decisions and tradeoffs made by management in formulating strategy.
Also, how the firm plans on creates and capturing value - Answers Business Model
transforming process using the internet or e-commerce capabilities
(avoids costly capital investment vis-a-vis vert. integration but harder to capture all profits) - Answers
virtual integration
diversification, vertical integration, geographic scope - Answers 3 determinants of firm scope
1. Products Diversification; using existing channels to sell new products
2. Geographic Diversification: selling existing products in new channels/geographies
3. Both product + geography: Very risky! (aka suicde sale) - Answers 3 diversification strategies
>95% of revenues come from primary activity - Answers Diversification: Single Business
70-95% of revenues come from primary activity - Answers Diversification: Dominant Business
<70% of revenues come from primary activity - Answers Diversification: Related or Unrelated
Coordination costs
Influence costs - Answers Types of Diversification Costs
administrative costs brought on by operating different businesses - Answers Coordination Costs
Corporate executives may be misled by knowledgeable but biased business unit managers - Answers
Influence costs
organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them
strategically - Answers Capabilities
Political
Economic
Sociocultural
, Technological
Ecological
Legal - Answers PESTEL
Valuable
Rare
Costly to Imitate
Organized to Capture Value - Answers VRIO
resource heterogeneity and resource immobility - Answers Two assumptions in resource-based model
Historical condition
causal ambiguity
Social complexity - Answers Why resources can be costly to imitate
strategic
functional
tactical/operational - Answers 3 types of plans
-provides direction and coordination
-reduces uncertainty
-establishes goals that lead to productivity standards
-engages all levels of organization and increases job satisfaction - Answers Why is planning important
Functional - includes just one SBU
Divisional - includes more than one SBU - Answers Functional vs Divisional Structure
aligned to business unit
shorter than corporate or SBU plans but typically last more than a year
Examples: marketing plans, production plans, etc. - Answers Functional plans
narrow, short time horizons
Examples: budgets, schedules - Answers Tactical/Operational Plans
Growth, Stability, Renewal - Answers Three "grand" strategies
planning, organizing, leading, controlling - Answers 4 functions of management
end result of decisions and tradeoffs made by management in formulating strategy.
Also, how the firm plans on creates and capturing value - Answers Business Model
transforming process using the internet or e-commerce capabilities
(avoids costly capital investment vis-a-vis vert. integration but harder to capture all profits) - Answers
virtual integration
diversification, vertical integration, geographic scope - Answers 3 determinants of firm scope
1. Products Diversification; using existing channels to sell new products
2. Geographic Diversification: selling existing products in new channels/geographies
3. Both product + geography: Very risky! (aka suicde sale) - Answers 3 diversification strategies
>95% of revenues come from primary activity - Answers Diversification: Single Business
70-95% of revenues come from primary activity - Answers Diversification: Dominant Business
<70% of revenues come from primary activity - Answers Diversification: Related or Unrelated
Coordination costs
Influence costs - Answers Types of Diversification Costs
administrative costs brought on by operating different businesses - Answers Coordination Costs
Corporate executives may be misled by knowledgeable but biased business unit managers - Answers
Influence costs
organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them
strategically - Answers Capabilities
Political
Economic
Sociocultural
, Technological
Ecological
Legal - Answers PESTEL
Valuable
Rare
Costly to Imitate
Organized to Capture Value - Answers VRIO
resource heterogeneity and resource immobility - Answers Two assumptions in resource-based model
Historical condition
causal ambiguity
Social complexity - Answers Why resources can be costly to imitate
strategic
functional
tactical/operational - Answers 3 types of plans
-provides direction and coordination
-reduces uncertainty
-establishes goals that lead to productivity standards
-engages all levels of organization and increases job satisfaction - Answers Why is planning important
Functional - includes just one SBU
Divisional - includes more than one SBU - Answers Functional vs Divisional Structure
aligned to business unit
shorter than corporate or SBU plans but typically last more than a year
Examples: marketing plans, production plans, etc. - Answers Functional plans
narrow, short time horizons
Examples: budgets, schedules - Answers Tactical/Operational Plans
