TEST BANK
,Chapter 01 - Strategic Management and Strategic Competitiveness
True / False
1. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
2. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure
the performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
3. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 The Competitive Landscape
Copyright Cengage Learning. Powered by Cognero. Page 1
,QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
4. The I/O and resource-based models contain many of the same steps. One clear difference between the two models is the
resource-based model starts by looking at the internal strengths and weaknesses of a firm, while the I/O model begins with
an examination of the external environment. Another key difference is the resource-based model identifies an attractive
industry much earlier in the process than does the I/O model.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 The Resource-Based Model of Above-Average Returns
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.04 - Use the resource-based model to explain how firms can earn above-
average returns.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
Multiple Choice
5. What has a firm achieved when it successfully formulates and implements a value-creating strategy?
a. Strategic competitiveness
b. A permanently sustainable competitive advantage
c. Substantial returns
d. Legal and ethical core values
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 5/17/2023 4:21 PM
Copyright Cengage Learning. Powered by Cognero. Page 2
, 6. The primary drivers of hypercompetition are __________ and __________.
a. rising global socio-economic instability; increased inflation
b. the emergence of a global economy; rapid technological change
c. increased global competition; decreased tariffs
d. increased availability of capital; increased competition
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 The Competitive Landscape
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 5/15/2023 2:15 PM
7. All of the following are characteristics of the global economy EXCEPT:
a. the increasing importance of emerging economies as sources of revenue growth.
b. the free movement of goods, services, people, skills, and ideas across geographic borders.
c. the increased use of tariffs to protect industries.
d. higher levels of opportunities and challenges in new geographic markets.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 The Competitive Landscape
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Diversity
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
8. The increasing economic interdependence among countries and their organizations as reflected in the flow of products,
financial capital, and knowledge across country borders is defined as
a. hypercompetition.
b. boundaryless retailing.
c. strategic intensity.
d. globalization.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 01 - Strategic Management and Strategic Competitiveness
True / False
1. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
2. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure
the performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
3. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 The Competitive Landscape
Copyright Cengage Learning. Powered by Cognero. Page 1
,QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
4. The I/O and resource-based models contain many of the same steps. One clear difference between the two models is the
resource-based model starts by looking at the internal strengths and weaknesses of a firm, while the I/O model begins with
an examination of the external environment. Another key difference is the resource-based model identifies an attractive
industry much earlier in the process than does the I/O model.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 The Resource-Based Model of Above-Average Returns
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.04 - Use the resource-based model to explain how firms can earn above-
average returns.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
Multiple Choice
5. What has a firm achieved when it successfully formulates and implements a value-creating strategy?
a. Strategic competitiveness
b. A permanently sustainable competitive advantage
c. Substantial returns
d. Legal and ethical core values
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 An Overview of Strategy and Strategic Competitiveness
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.01 - Define strategic competitiveness, strategy, competitive advantage,
above-average returns, and the strategic management process.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 5/17/2023 4:21 PM
Copyright Cengage Learning. Powered by Cognero. Page 2
, 6. The primary drivers of hypercompetition are __________ and __________.
a. rising global socio-economic instability; increased inflation
b. the emergence of a global economy; rapid technological change
c. increased global competition; decreased tariffs
d. increased availability of capital; increased competition
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 The Competitive Landscape
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Remember
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 5/15/2023 2:15 PM
7. All of the following are characteristics of the global economy EXCEPT:
a. the increasing importance of emerging economies as sources of revenue growth.
b. the free movement of goods, services, people, skills, and ideas across geographic borders.
c. the increased use of tariffs to protect industries.
d. higher levels of opportunities and challenges in new geographic markets.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 The Competitive Landscape
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.01.02 - Describe the competitive landscape, and explain how globalization,
technological changes, and expectations of socially responsible behavior shape it.
NATIONAL STANDARDS: United States - BUSPROG: Diversity
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:02 PM
DATE MODIFIED: 4/19/2023 5:02 PM
8. The increasing economic interdependence among countries and their organizations as reflected in the flow of products,
financial capital, and knowledge across country borders is defined as
a. hypercompetition.
b. boundaryless retailing.
c. strategic intensity.
d. globalization.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 3
