Test Bank - Strategic Management Concepts and Cases Competitiveness and Globalization, 14th Edition by Hitt, Ireland, & Hoskisson All 1-13 Chapters Covered ,Latest Edition

TEST BANK vb




Strategic Management: Concepts and Cases
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vb Competitiveness and Globalization 14th Edition
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vb by Hitt, Chapter 1 to 13 Covered
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,Table of contents vb vb vb




1. Strategic Management and Strategic Competitiveness.
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2. The External Environment: Opportunities, Threats, Industry Competition, and Competitor
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vb Analysis.

3. The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive
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vb Advantages

4. Business-Level Strategy.
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5. Competitive Rivalry and Competitive Dynamics.
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6. Corporate-Level Strategy.
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7. Merger and Acquisition Strategies.
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8. International Strategy.
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9. Cooperative Strategy.
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10. Corporate Governance.
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11. Organizational Structure and Controls.
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12. Strategic Leadership.
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13. Strategic Entrepreneurship.
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,Chapter vb01: vbStrategic vbManagement vband vbStrategic vbCompetitiveness

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1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating
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strategy.
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a. True
b. False
ANSWER: True v b




2. Alligator Enterprises has earned above-average returns since its founding five years ago. No other firm has
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challenged Alligator in its particular market niche; therefore, the firm's owners can feel secure that Alligator
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has established a competitive advantage.
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a. True
b. False
ANSWER: False v b




3. The goal of strategy implementation is to develop a permanent competitive advantage.
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a. True
b. False
ANSWER: False v b




4. Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses
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that will result from a particular investment.
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a. True
b. False
ANSWER: True v b




5. The difference between average and above-average returns is that average returns are returns that an
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investor expects to earn from an investment as compared to other investments with similar stock prices,
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while above-average returns are in excess of expectations for similarly priced stocks.
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a. True
b. False
ANSWER: False v b




6. Above-average returns are returns in excess of what an investor expects to earn from other investments
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with a similar amount of risk.
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a. True
b. False
ANSWER: True v b




7. Particularly when assessing investments in new venture firms, the most effective, and often the only, way
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to measure the performance of the firms and determine their viability as an investment option is to
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examine financial metrics such as returns on assets, and sales.
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a. True
b. False
ANSWER: False v b



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, 8. To implement a firm’s strategies, the firm takes actions to enact each strategy with the intent of
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achieving strategic competitiveness and above-average returns.
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a. True
b. False
ANSWER: True v b




9. Economies of scale and huge advertising budgets are more effective in the new competitive landscape than
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they were in the past.
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a. True
b. False
ANSWER: False v b




10. The two primary drivers of hypercompetition are the emergence of the global economy and technology.
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a. True
b. False
ANSWER: True v b




11. The rate of technology diffusion has increased significantly over the last two decades.
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a. True
b. False
ANSWER: True v b




12. RelTech is a firm in the electronics industry. It could protect its proprietary technology through patents.
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However, it likely will not apply for patents to keep competitors from gaining access to the technological
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knowledge included in the patent application.
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a. True
b. False
ANSWER: True v b




13. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
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a. True
b. False
ANSWER: False v b




14. The rapid rate of technological diffusion has increased the competitive benefits of patents.
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a. True
b. False
ANSWER: False v b




15. Companies searching for opportunities in the global economy would likely conclude that the three
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leading European economies of Germany, United Kingdom, and France would be good investments because
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they are predicted to continue increasing in size.
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a. True
b. False
ANSWER: False v b




16. Since the 1980s, the basis for competition has shifted from intangible resources to hard assets.
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