Full Test Bank for Strategic Management:
Concepts and Cases - Competitiveness and
Globalization, 14th Edition by Michael A.
Hitt, R. Duane Ireland, and Robert E.
Hoskisson Verified Q&A Detailed Rationales
Updated 2026 Version
Strategic Management: Concepts and Cases
(14th Edition, Hitt et al.) — Original Question
Bank
CHAPTER 1: STRATEGIC MANAGEMENT
AND STRATEGIC COMPETITIVENESS —
Questions 1–20
Q1. What is strategic competitiveness?
A) A firm's ability to outperform its rivals
1
,B) A firm's ability to achieve above-average
returns
C) A firm's ability to formulate and implement
a value-creating strategy
D) A firm's ability to reduce costs below
competitors
Answer: C
Rationale: Strategic competitiveness is
achieved when a firm successfully formulates
and implements a value-creating strategy .
Q2. Above-average returns are:
A) Returns equal to what investors expect
B) Returns in excess of what investors expect
given the level of risk
2
,C) Returns below what investors expect
D) Returns that are guaranteed
Answer: B
Rationale: Above-average returns exceed what
investors expect given the level of risk.
Average returns are what investors expect for
investments with similar risk .
Q3. The strategic management process is:
A) A one-time event
B) The full set of commitments, decisions, and
actions required for a firm to achieve strategic
competitiveness and earn above-average
returns
C) Only the formulation of strategy
3
, D) Only the implementation of strategy
Answer: B
Rationale: The strategic management process
is the full set of commitments, decisions, and
actions firms take to achieve strategic
competitiveness and earn above-average
returns .
Q4. The two primary models for achieving
above-average returns are:
A) The I/O model and the resource-based
model
B) The SWOT model and the PEST model
C) The cost model and the differentiation
model
4
Concepts and Cases - Competitiveness and
Globalization, 14th Edition by Michael A.
Hitt, R. Duane Ireland, and Robert E.
Hoskisson Verified Q&A Detailed Rationales
Updated 2026 Version
Strategic Management: Concepts and Cases
(14th Edition, Hitt et al.) — Original Question
Bank
CHAPTER 1: STRATEGIC MANAGEMENT
AND STRATEGIC COMPETITIVENESS —
Questions 1–20
Q1. What is strategic competitiveness?
A) A firm's ability to outperform its rivals
1
,B) A firm's ability to achieve above-average
returns
C) A firm's ability to formulate and implement
a value-creating strategy
D) A firm's ability to reduce costs below
competitors
Answer: C
Rationale: Strategic competitiveness is
achieved when a firm successfully formulates
and implements a value-creating strategy .
Q2. Above-average returns are:
A) Returns equal to what investors expect
B) Returns in excess of what investors expect
given the level of risk
2
,C) Returns below what investors expect
D) Returns that are guaranteed
Answer: B
Rationale: Above-average returns exceed what
investors expect given the level of risk.
Average returns are what investors expect for
investments with similar risk .
Q3. The strategic management process is:
A) A one-time event
B) The full set of commitments, decisions, and
actions required for a firm to achieve strategic
competitiveness and earn above-average
returns
C) Only the formulation of strategy
3
, D) Only the implementation of strategy
Answer: B
Rationale: The strategic management process
is the full set of commitments, decisions, and
actions firms take to achieve strategic
competitiveness and earn above-average
returns .
Q4. The two primary models for achieving
above-average returns are:
A) The I/O model and the resource-based
model
B) The SWOT model and the PEST model
C) The cost model and the differentiation
model
4
