SCHM2301 Exam 1 Questions and
Answers Graded A+
Levels of strategic planning - Correct answer-1. corporate planning
2. strategic business units (SBU)
3. Functional planning
Corporate planning - Correct answer-What business(es) should we be in? Broadest
level with least amount of constraints. communicates overall mission of the firm.
Actions are long term. Establishes business performance metrics and how risks
will be managed
Strategic business unit planning (SBU) - Correct answer-How do we compete?
Develops business model and uses SWOT analysis when forming it
SWOT (internal) - Correct answer-strengths and weaknesses
SWOT (external) - Correct answer-opportunities and threats
functional planning - Correct answer-How do we best support the SBU strategy?
Most detailed and most constrained. Structural and infrastructural actions
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,Structural strategic decisions - Correct answer-affects strategy and physical
operations management system (ie: capacity, facilities, technology, supply chain
network)
Infrastructural strategic decisions - Correct answer-determines what is done, when
it is done, and who does it (ie: workforce, production planning and control,
product/process innovation, organization management)
Critical elements of operations strategy - Correct answer-1. Key customers
2. value proposition
3. capabilities
All need to be agreed upon by executives in all different departments
key customers - Correct answer-customers/customer segments that are highly
important to the firm's current or future success
value proposition - Correct answer-all the tangible and intangible benefits that
customers can expect by using the firm's products
Environment - Correct answer-where key customers, value proposition, and
capabilities work in. Consists of competition, regulations, and technology
Product specific traits - Correct answer-1. order winners
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, 2. order qualifiers
3. order losers
order winners - Correct answer-traits that cause customers to choose one
company's product over another
order qualifiers - Correct answer-traits that are needed for the customer to consider
the product
order losers - Correct answer-poor performance that causes a loss of either current
or future businesses
5 characteristics of a well-designed value proposition - Correct answer-1.
combination of product features that customers find attractive and are willing to
pay for
2. differentiates the firm from its competition in a way that is difficult to imitate
3. satisfies the financial and strategic objectives of the business
4. can be reliably delivered given the operational capabilities of the business and
its supporting supply chain
5. consistent with the firm's social and core values
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Answers Graded A+
Levels of strategic planning - Correct answer-1. corporate planning
2. strategic business units (SBU)
3. Functional planning
Corporate planning - Correct answer-What business(es) should we be in? Broadest
level with least amount of constraints. communicates overall mission of the firm.
Actions are long term. Establishes business performance metrics and how risks
will be managed
Strategic business unit planning (SBU) - Correct answer-How do we compete?
Develops business model and uses SWOT analysis when forming it
SWOT (internal) - Correct answer-strengths and weaknesses
SWOT (external) - Correct answer-opportunities and threats
functional planning - Correct answer-How do we best support the SBU strategy?
Most detailed and most constrained. Structural and infrastructural actions
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Structural strategic decisions - Correct answer-affects strategy and physical
operations management system (ie: capacity, facilities, technology, supply chain
network)
Infrastructural strategic decisions - Correct answer-determines what is done, when
it is done, and who does it (ie: workforce, production planning and control,
product/process innovation, organization management)
Critical elements of operations strategy - Correct answer-1. Key customers
2. value proposition
3. capabilities
All need to be agreed upon by executives in all different departments
key customers - Correct answer-customers/customer segments that are highly
important to the firm's current or future success
value proposition - Correct answer-all the tangible and intangible benefits that
customers can expect by using the firm's products
Environment - Correct answer-where key customers, value proposition, and
capabilities work in. Consists of competition, regulations, and technology
Product specific traits - Correct answer-1. order winners
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, 2. order qualifiers
3. order losers
order winners - Correct answer-traits that cause customers to choose one
company's product over another
order qualifiers - Correct answer-traits that are needed for the customer to consider
the product
order losers - Correct answer-poor performance that causes a loss of either current
or future businesses
5 characteristics of a well-designed value proposition - Correct answer-1.
combination of product features that customers find attractive and are willing to
pay for
2. differentiates the firm from its competition in a way that is difficult to imitate
3. satisfies the financial and strategic objectives of the business
4. can be reliably delivered given the operational capabilities of the business and
its supporting supply chain
5. consistent with the firm's social and core values
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
