F14 MGT 4900
Exam #1 Review Questions for Chapters 1 to 4
1. What do we mean by strategy? See pages 4, 5, and 7 (the first two paragraphs).
2. Why a company’s strategy evolves over time? See page 8.
3. What is the difference between a company’s strategy and a company’s business model? See
pages 5, 7 (first two paragraphs), and 10.
4. What are the three tests of a winning strategy? See page 12.
5. What are the telling signs of a well-managed company? See p. 13, the paragraph above the
heading “The Road Ahead.”
6. What does a company’s strategy concern? See page 4.
7. The crux of strategy formulation is to develop a sustainable competitive ...view middle of the document...
9. What does a diversified company’s strategy-making hierarchy consist of? See pages 32 (last
two paragraphs), 33 (Figure 2.2), 34, and 35 (first eight lines).
10. What does business strategy concern with? See p. 34 (first paragraph and the margin note).
11. What is a strategic plan? See p. 35, the 9th and 10th lines from the top of the page with the
heading “A Strategic Vision + Objectives + Strategy = A Strategic Plan” and the paragraph
1. What does a company’s macro-environment comprise of? See pp. 46 (first paragraph) and
47 (Figure 3.2).
2. What are the five sources of competitive pressures? See pp. 49 (the paragraph next to “LO2”
to the right) and 50 (Figure 3.3).
3. What will deter potential entrants from entering an industry? See pp. 54 to 55 (the first two
4. Under what situations companies are not subject to the competitive pressures from
substitute products? See pp. 56 (last paragraph), 57, and 58 (the first three paragraphs).
5. What are the factors that cause supplier bargaining power to be strong? See pp. 59 and 60.
6. What are driving forces? See p. 64 (the two paragraphs above the last paragraph and the
margin note to the left).
7. What is strategic group mapping? See p. 68 (last paragraph of the page).
8. What are key success factors in an industry? See pp. 73 (last paragraph), 74, and 75 (the
first three lines).
9. What are the guidelines for developing a strategic group map for a given industry? See p. 69,
last two paragraphs of the page.
10. What factors...