Test Bank for Strategic Management in Action, 6th Edition by Mary Coulter.

TEST BANK FOR STRATEGIC
MANAGEMENT IN ACTION, 6TH
EDITION BY MARY COULTER

,Strategic Management in Action, 6e (Coulter)
Chapter 2 The Context of Managing Strategically

1) When an organization has numerous internal strengths, it is said to have a competitive
advantage.
Answer: FALSE
Diff: 2 Page Ref: 28
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

2) In the industrial organization (I/O) view, the focus of strategic analysis is on the internal
situation of the organization.
Answer: FALSE
Diff: 2 Page Ref: 29
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

3) The industrial organization (I/O) view proposes that an organization's competitive advantage
is only temporary and can be gained only by peppering the competitive marketplace with rapid
radical surprises.
Answer: FALSE
Diff: 3 Page Ref: 29
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

4) The resource-based view focuses on the structural forces within an industry, the firm's
competitive environment, and how these influence competitive advantage.
Answer: FALSE
Diff: 2 Page Ref: 29
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages




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, 5) The resources-based view (RBV) takes the approach that a firm's resources are more
important than industry structure in getting and keeping competitive advantage.
Answer: TRUE
Diff: 1 Page Ref: 29
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

6) The resource-based view (RBV) only focuses on the internal factors, with no regard for the
organization's external factors.
Answer: FALSE
Diff: 3 Page Ref: 30
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

7) Physical assets encompass the actual and potential debt and equity used by the organization as
well as any retained earnings or other financial holdings.
Answer: FALSE
Diff: 2 Page Ref: 30
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

8) According to the resource-based view, a firm's resources should add value, be rare, be
exploited, and easy to duplicate or substitute.
Answer: FALSE
Diff: 3 Page Ref: 31
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages

9) According to the guerrilla-based view, a firm's competitive advantage is temporary.
Answer: TRUE
Diff: 2 Page Ref: 33
Topic: Describe the Different Perspectives on Competitive Advantage
AACSB: Analytical Skills
Objective: Discuss strategies that companies use to acquire and maintain competitive advantages




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