Strategic Management Theory An Integrated Approach, Hill - Exam Preparation Test Bank (Downloadable Doc)

1. A strategy can be defined as a set of related actions that managers take to increase their company's performance.
a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Easy

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

2. Strategic leadership is concerned with how to most effectively manage a company's strategy-making process to
create competitive advantage.

a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Easy

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

3. To increase shareholder value, managers must try to venture into new markets whether the results are profitable or
not.

a. True
b. False

ANSWER: False
POINTS: I
DIFFICULTY: Moderate

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

4. A firm obtains competitive advantage when its strategy results in superior performance compared to its competitors.
a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Easy

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Comprehension

,5. ROIC is a measure of how efficiently and effectively managers use the capital at their disposal to produce
profitability.
a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Moderate

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"

NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

6. The profit growth of a company can be measured by the increase in net profit over time.
a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Easy

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

7. A business model is managers' conception of how the set of strategies their company pursues should mesh together
into a congruent whole, thus enabling the company to gain a competitive advantage and achieve superior profitability
and profit growth.

a. True
b. False

ANSWER: True
POINTS: I
DIFFICULTY: Easy

LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

8. One of the factors that distinguishes organizations in the nonprofit sector from profit-making businesses is the lack of
a need for strategic management.

a. True
b. False

ANSWER: False
POINTS: I
DIFFICULTY: Easy

,LEARNING OBJECTIVES: SMIA.HILL.l5.01.01- Explain what is meant by "competitive advantage"
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

, 9. General managers bear responsibility for the overall performance of the company or for one of its major self
contained subunits or divisions.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SMIA.HILL.15.01.02- Discuss the strategic role of managers at different levels
within an organization
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

10. The CEO is a company's principal general manager.
a. True
b. False

ANSWER: True

POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SMIA.HILL.15.01.02- Discuss the strategic role of managers at different levels
within an organization
NATIONAL STANDARDS: United States- BUSPROG: Reflective Thin- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge

11. The final component of the strategic management process is crafting the organization's mission statement, which
provides the framework or context within which strategies are formulated.

a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SMIA.HILL.15.01.03 -Identify the primary steps in a strategic planning process
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS: Bloom's: Comprehension

12. The concepts vision and mission can be used interchangeably.
a. True
b. False

ANSWER: False

POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SMIA.HILL.15.01.03 -Identify the primary steps in a strategic planning process
NATIONAL STANDARDS: United States- BUSPROG: Analytic
KEYWORDS: Bloom's: Knowledge