TESTBANKFOR
STRATEGICMANAGEMENT6THEDITION J
ROTHAERMELFRANK
ISBN 978-1266191862
J
,Chapter 1-12 AnswersareattheEndofEachChapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitiv
e ad vantage without regard to the external environment.
⊚ true
⊚ false
2) The following statement by the chief executive of MegaFilms movie studio should not
be us ed as a strategy: “WeJwill produce the greatest films of the 21st century.”
⊚ true
⊚ false
3) The three tasks of the AFI strategy framework areJto Assemble a prototype, Find a buyer, an
ww
d Inc orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysis stage of the AFI framework should include
“Wh at effects do forces in the external environment haveJon the firm’s potential to gain
and sustain a competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to
ww
it nomatter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered intern
al sta keholders.
⊚ true
⊚ false
7) A firm is required by society and its shareholders to meet its ethical and philanthrop
ic res ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysis provides adecision tool that helps strategic leaders recognize th
e ne eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants to open his own hot dogJrestaurant but doesn’t know anything about business.
He ne eds help determining who his competition is, how he should craft his strategy to
compete and h ow he’ll implement his strategy to achieve a competitiveJadvantage. He’s
hired you to help him get started. As a result, you will probably use which of the follo
wing?
A) AFI strategy framework
B) Red Queen effect
C) competitiveJbenchmarking
D) Stakeholder Impact analysis
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a res ww
ult, Ro berta saysJthat her strategy is to focus on competitiveJbenchmarking to achi
;\ ; \ ;\ ; \ ;\ ; \ ;\ ;\ ;\ ;\ ; \ ; \
ev e competitive advantage. Which is the best evaluation of Roberta’s statement?
;\ ; \ ; \ ; \ ; \ ;\ ; \ ; \ ; \ ; \ ; \
A) Roberta’s strategy is clear, but she should provide more detail. ;\ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ;\
B) Roberta’s strategy reveals a clear strategic position andtradeoff, so she shoul d
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
pr oceed. ; \
C) Roberta should reevaluate her statement because it fails to mention more than on eJs
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
tr ategy. ; \
D) Roberta should reevaluate her statement because it fails to meetthe principles of wha t
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \
a s trategy should be. ;\ ; \ ; \ ;\
11) Tony’s Pizza Shop isJable to net $10,000 a week; this makes the shop profitable. Its numbe r o
ww ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
n e competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza Pa
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
lac e nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclu de that it ha
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \
s a co mpetitive advantage in its industry.
; \ ; \ ; \ ; \ ; \ ; \ ;\
A) True—competitive advantage is achieved through profitability alone. ;\ ; \ ; \ ;\ ; \ ;\
B) True—competitive advantageJis achieved since Tony has a positive net income. ;\ ; \ ; \ ;\ ;\ ; \ ;\ ; \ ; \
C) False—
competitive advantageis only achieved by generating above average returns, relativ e t ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
o competition. ; \ ;\
D) False—
Tony more than likely hasJa sustained competitive advantage since he’s been in busi ne
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
s s longer. ; \ ;\
12) Bill’s Auto & Airplane Repair shop isJable to generateJa positive net incomeJof $10,000 a
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;
\we ek, which isJabout the same as the income of a close competitor. As a result, w
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\
e can conclud e that the two businesses also have a competitive parity in the indust
;\ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ; \ ; \ ; \ ;\ ;\
r y.;\
A) Correct—competitive advantage is achieved through profitability alone. ;\ ;\ ; \ ; \ ; \ ;\
B) Correct—
competitive advantage is achieved since Bill’s Auto & Airplane Repair shopJhas a ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\
positi ve net income. ; \ ; \ ; \
C) Correct—competitive parity is a performance of two or more firms at the same level. ;\ ;\ ;\ ;\ ;\ ; \ ;\ ;\ ;\ ;\ ; \ ;\ ;\
D) Incorrect—
Bill’s Auto& Airplane Repair shop more than likely has a sustained competi tive
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\
a dvantage because the business is diversified.
; \ ; \ ; \ ; \ ; \ ; \ ;\
STRATEGICMANAGEMENT6THEDITION J
ROTHAERMELFRANK
ISBN 978-1266191862
J
,Chapter 1-12 AnswersareattheEndofEachChapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitiv
e ad vantage without regard to the external environment.
⊚ true
⊚ false
2) The following statement by the chief executive of MegaFilms movie studio should not
be us ed as a strategy: “WeJwill produce the greatest films of the 21st century.”
⊚ true
⊚ false
3) The three tasks of the AFI strategy framework areJto Assemble a prototype, Find a buyer, an
ww
d Inc orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysis stage of the AFI framework should include
“Wh at effects do forces in the external environment haveJon the firm’s potential to gain
and sustain a competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to
ww
it nomatter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered intern
al sta keholders.
⊚ true
⊚ false
7) A firm is required by society and its shareholders to meet its ethical and philanthrop
ic res ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysis provides adecision tool that helps strategic leaders recognize th
e ne eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants to open his own hot dogJrestaurant but doesn’t know anything about business.
He ne eds help determining who his competition is, how he should craft his strategy to
compete and h ow he’ll implement his strategy to achieve a competitiveJadvantage. He’s
hired you to help him get started. As a result, you will probably use which of the follo
wing?
A) AFI strategy framework
B) Red Queen effect
C) competitiveJbenchmarking
D) Stakeholder Impact analysis
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a res ww
ult, Ro berta saysJthat her strategy is to focus on competitiveJbenchmarking to achi
;\ ; \ ;\ ; \ ;\ ; \ ;\ ;\ ;\ ;\ ; \ ; \
ev e competitive advantage. Which is the best evaluation of Roberta’s statement?
;\ ; \ ; \ ; \ ; \ ;\ ; \ ; \ ; \ ; \ ; \
A) Roberta’s strategy is clear, but she should provide more detail. ;\ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ;\
B) Roberta’s strategy reveals a clear strategic position andtradeoff, so she shoul d
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
pr oceed. ; \
C) Roberta should reevaluate her statement because it fails to mention more than on eJs
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
tr ategy. ; \
D) Roberta should reevaluate her statement because it fails to meetthe principles of wha t
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \
a s trategy should be. ;\ ; \ ; \ ;\
11) Tony’s Pizza Shop isJable to net $10,000 a week; this makes the shop profitable. Its numbe r o
ww ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
n e competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza Pa
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
lac e nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclu de that it ha
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \
s a co mpetitive advantage in its industry.
; \ ; \ ; \ ; \ ; \ ; \ ;\
A) True—competitive advantage is achieved through profitability alone. ;\ ; \ ; \ ;\ ; \ ;\
B) True—competitive advantageJis achieved since Tony has a positive net income. ;\ ; \ ; \ ;\ ;\ ; \ ;\ ; \ ; \
C) False—
competitive advantageis only achieved by generating above average returns, relativ e t ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
o competition. ; \ ;\
D) False—
Tony more than likely hasJa sustained competitive advantage since he’s been in busi ne
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\
s s longer. ; \ ;\
12) Bill’s Auto & Airplane Repair shop isJable to generateJa positive net incomeJof $10,000 a
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;
\we ek, which isJabout the same as the income of a close competitor. As a result, w
; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\ ;\ ;\ ;\ ;\ ;\ ;\
e can conclud e that the two businesses also have a competitive parity in the indust
;\ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ; \ ;\ ; \ ; \ ; \ ;\ ;\
r y.;\
A) Correct—competitive advantage is achieved through profitability alone. ;\ ;\ ; \ ; \ ; \ ;\
B) Correct—
competitive advantage is achieved since Bill’s Auto & Airplane Repair shopJhas a ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\
positi ve net income. ; \ ; \ ; \
C) Correct—competitive parity is a performance of two or more firms at the same level. ;\ ;\ ;\ ;\ ;\ ; \ ;\ ;\ ;\ ;\ ; \ ;\ ;\
D) Incorrect—
Bill’s Auto& Airplane Repair shop more than likely has a sustained competi tive
;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ;\ ; \ ;\
a dvantage because the business is diversified.
; \ ; \ ; \ ; \ ; \ ; \ ;\
