MBA EXAM QUESTIONS WITH
CORRECT ANSWERS
strategy - ANSWER where should we compete and how? integrated set of
choices that positions the business in its industry so as to generate superior
financial returns over time,
Strong strategy is consistent, aligns with intended business model and
positioning, How a business performs in its environment compared to
competitors
purpose and goal of strategy - ANSWER create a competitive advantage,
determines where to engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average
profitability, above average return on equity
Five Stages of the Strategic Management Process - ANSWER Analysis -
understand unique competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees,
activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - ANSWER Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
Competitive Advantage - ANSWER specialized approach to create value to
meet market expectations
, Strategic Decision Making - ANSWER non-routine, affect entire organizational
functions, commitment of resources needed, difficult to reverse, making a clear
choice among alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - ANSWER industries and competitors, how it is evolving,
growing and the importance
Internal Analysis - ANSWER value chain and competitive advantage
Resource Based Analysis - ANSWER Sustainable competitive advantage
Strategy vs Tactics - ANSWER Strategy - long term plan, affects entire
company, difficult to change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - ANSWER Technology, big data, rapid
communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
how is strategy effectiveness measured - ANSWER Financial performance
metrics
Qualitative assessments
Stakeholder goals (internal and external)
SWOT Analysis - ANSWER Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - ANSWER Evaluates structural factors
focusing on how they influence industry profitability
CORRECT ANSWERS
strategy - ANSWER where should we compete and how? integrated set of
choices that positions the business in its industry so as to generate superior
financial returns over time,
Strong strategy is consistent, aligns with intended business model and
positioning, How a business performs in its environment compared to
competitors
purpose and goal of strategy - ANSWER create a competitive advantage,
determines where to engage with the competition and choice of business model
Goal: superior performance, substantial positive return, above average
profitability, above average return on equity
Five Stages of the Strategic Management Process - ANSWER Analysis -
understand unique competitive strengths, how to create value
Formulation - vison, mission, goals, objectives, strategic approach
Implementation - allocate resources, organizational structure, employees,
activities to engage in
Evaluation - think and respond based on results and analysis
Performance - success or failure of strategy
Five Questions to Define strategy - ANSWER Why are firms different
How are competitive differences sustained?
What is special about strategic decisions
What is the nature of strategy in multi-divisional firm?
How is strategic effectiveness measured?
Competitive Advantage - ANSWER specialized approach to create value to
meet market expectations
, Strategic Decision Making - ANSWER non-routine, affect entire organizational
functions, commitment of resources needed, difficult to reverse, making a clear
choice among alternatives, easily identified as failure or success
Clear Choice - what will it do and not do
Resources and capabilities that set a company apart
Long term vision
Company business model
External Analysis - ANSWER industries and competitors, how it is evolving,
growing and the importance
Internal Analysis - ANSWER value chain and competitive advantage
Resource Based Analysis - ANSWER Sustainable competitive advantage
Strategy vs Tactics - ANSWER Strategy - long term plan, affects entire
company, difficult to change, fundamental to everything you do
Tactics - how to get there, day to day activities
how does strategy change over time - ANSWER Technology, big data, rapid
communication,
Globalization
Ease of access to finance and markets
24/7 pace of work
Rapid change and evolving conditions
how is strategy effectiveness measured - ANSWER Financial performance
metrics
Qualitative assessments
Stakeholder goals (internal and external)
SWOT Analysis - ANSWER Strenghth
Weakness
Opportunity
Threat
Porters Five Forces - Industry Analysis - ANSWER Evaluates structural factors
focusing on how they influence industry profitability
