, 01
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPa d
B. iPhon e
C. iPo d
D. iTune s
2. is best described as an integrative management field that combines analysis, formulation,
and implementation in the quest for competitive advantage.
A. Supply chain management
B. Integrated technology management
C. Strategic
management
D. Inventory
management
3. is best described as a set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors.
A. Behavior modification
B. Strateg y
C. Cred o
D. Competency management
4. Which of the following stages of the strategic management process involves an evaluation
of a firm's external and internal environments?
A. Strategy analysis
B. Strategy implementation
C. Strategy formulation
D. Strategy control
,5. In , a firm frames a guiding policy to address the competitive challenge.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
6. Through , a firm puts its guiding policy into practice by employing a set of coherent
actions.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
7. A firm that achieves superior performance relative to other firms in the same industry or
the industry average has a(n) .
A. competitive advantage B. balanced scorecard
C. power position
D. equity leverage
8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—a
product that gained popularity among diverse groups. Soon, other companies started to
sell their own brands of energy drinks, thereby giving Cadia Foods ample competition. In
response, Cadia Foods decided to limit its variety of energy drinks to only two. However,
it ensured that these two flavors were free of calories and low in cost. With this
innovation, Cadia Foods Inc. consistently outperformed its competitors for ten years. In
this scenario, Cadia Foods Inc. has maintained a through its innovative strategy.
A. balanced scorecard B. fiduciary responsibility
C. consistent power position
D. sustainable competitive
advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
advantage?
, A. Newon Inc. generated a revenue of $300,000 this
financial year, which is close to the industrial
revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this
year compared to its previous year's sales of 5000
units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of
68 percent in the social networking industry for
more than three years.
D. Max Electrova Inc. was able to outperform its
competitors with its new production system, in
terms of revenue, for a brief period of four months.
10. If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the
following will help determine if it has a competitive advantage over other pharmaceutical
companies?
A. Comparing the return to the return on invested
capital obtained by other firms in the industry
B. Assessing the value based on the shareholders'
expectations of return on their capital
C. Evaluating the liquidity ratios for other
pharmaceutical companies
D. Comparing the value to the history of the firm's
return of investment over a number of years
11. Underperformance relative to other firms in the same industry or the industry average
results in a(n) for a firm.
A. sustainable competitive advantage
B. increased power distance
C. diseconomies of scope
D. competitive disadvantage
12. New Communications Inc. is a newspaper publishing company whose average return on
invested capital is approximately 5 percent. Because newspaper publishing is a declining
industry, the industry average has been negative (-5 percent) for the last few years. In
this scenario, New Communications Inc. has a .
A. competitive advantage B. balanced scorecard
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPa d
B. iPhon e
C. iPo d
D. iTune s
2. is best described as an integrative management field that combines analysis, formulation,
and implementation in the quest for competitive advantage.
A. Supply chain management
B. Integrated technology management
C. Strategic
management
D. Inventory
management
3. is best described as a set of goal-directed actions a firm takes to gain and sustain superior
performance relative to competitors.
A. Behavior modification
B. Strateg y
C. Cred o
D. Competency management
4. Which of the following stages of the strategic management process involves an evaluation
of a firm's external and internal environments?
A. Strategy analysis
B. Strategy implementation
C. Strategy formulation
D. Strategy control
,5. In , a firm frames a guiding policy to address the competitive challenge.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
6. Through , a firm puts its guiding policy into practice by employing a set of coherent
actions.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
7. A firm that achieves superior performance relative to other firms in the same industry or
the industry average has a(n) .
A. competitive advantage B. balanced scorecard
C. power position
D. equity leverage
8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—a
product that gained popularity among diverse groups. Soon, other companies started to
sell their own brands of energy drinks, thereby giving Cadia Foods ample competition. In
response, Cadia Foods decided to limit its variety of energy drinks to only two. However,
it ensured that these two flavors were free of calories and low in cost. With this
innovation, Cadia Foods Inc. consistently outperformed its competitors for ten years. In
this scenario, Cadia Foods Inc. has maintained a through its innovative strategy.
A. balanced scorecard B. fiduciary responsibility
C. consistent power position
D. sustainable competitive
advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
advantage?
, A. Newon Inc. generated a revenue of $300,000 this
financial year, which is close to the industrial
revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this
year compared to its previous year's sales of 5000
units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of
68 percent in the social networking industry for
more than three years.
D. Max Electrova Inc. was able to outperform its
competitors with its new production system, in
terms of revenue, for a brief period of four months.
10. If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the
following will help determine if it has a competitive advantage over other pharmaceutical
companies?
A. Comparing the return to the return on invested
capital obtained by other firms in the industry
B. Assessing the value based on the shareholders'
expectations of return on their capital
C. Evaluating the liquidity ratios for other
pharmaceutical companies
D. Comparing the value to the history of the firm's
return of investment over a number of years
11. Underperformance relative to other firms in the same industry or the industry average
results in a(n) for a firm.
A. sustainable competitive advantage
B. increased power distance
C. diseconomies of scope
D. competitive disadvantage
12. New Communications Inc. is a newspaper publishing company whose average return on
invested capital is approximately 5 percent. Because newspaper publishing is a declining
industry, the industry average has been negative (-5 percent) for the last few years. In
this scenario, New Communications Inc. has a .
A. competitive advantage B. balanced scorecard
