WPC 480 Final PASSED Actual Exam
Questions and CORRECT Answers
Ackbar, Inc. has had high growth in profits for several years, and each year it has had the
highest profits ever. What can you assess about Ackbar's strategic competitive advantage? -
CORRECT ANSWER✔✔- Can assess nothing about competitive advantage.
Firms that outperform all their competitors must have a high quality strategy. - CORRECT
ANSWER✔✔- False
It is not rare that a CEO of a large, public organizations will be given a raise and/or bonus
even though the profitability of the firm has been negative for several years. What is the best
explanation for this? - CORRECT ANSWER✔✔- The firm has been growing rapidly in
number of locations and factories.
Why are theories of how to achieve a competitive advantage not about sufficient causes, but
only necessary causes? - CORRECT ANSWER✔✔- The causes of firm performance are not
generalizable to all contexts.
Firms are made more capable of achieving a competitive advantage by having strong
competitors so they must adapt and become stronger in the market. - CORRECT
ANSWER✔✔- False
Accounting Value - CORRECT ANSWER✔✔- Based on historical data
Shareholder Value - CORRECT ANSWER✔✔- Based on predictions on the future
Economic Value - CORRECT ANSWER✔✔- Based on predictions of the future
Balanced Scorecard - CORRECT ANSWER✔✔- Based mostly on perceptions that can
change quickly
Research into the causes of high performance in firms ought to include studying firms that
have very low performance. - CORRECT ANSWER✔✔- True
, It is difficult to learn much about how to succeed at strategy when asking people to explain
their successes after they have become successful. - CORRECT ANSWER✔✔- True
In the long run,the major ways of evaluating firm performance will tend to be correlated with
each other. So this suggests that for a strategic analyst, it doesn't matter much what data on
firm performance is chosen. - CORRECT ANSWER✔✔- False
The higher proportion of assets that are tangible, the more useful accounting profit is as a
measure of firm performance for a strategic analyst. - CORRECT ANSWER✔✔- True
PESTEL - CORRECT ANSWER✔✔- Political
Economic
Sociocultural
Technological
Ecological
Legal
Political - CORRECT ANSWER✔✔- Non-market strategies
Economic - CORRECT ANSWER✔✔- Macro-economic conditions of a country or region
Sociocultural - CORRECT ANSWER✔✔- Cultures, norms, and value
Technological - CORRECT ANSWER✔✔- Application of new knowledge
Ecological - CORRECT ANSWER✔✔- Natural environment
Legal - CORRECT ANSWER✔✔- Governing laws, mandates, regulations
Questions and CORRECT Answers
Ackbar, Inc. has had high growth in profits for several years, and each year it has had the
highest profits ever. What can you assess about Ackbar's strategic competitive advantage? -
CORRECT ANSWER✔✔- Can assess nothing about competitive advantage.
Firms that outperform all their competitors must have a high quality strategy. - CORRECT
ANSWER✔✔- False
It is not rare that a CEO of a large, public organizations will be given a raise and/or bonus
even though the profitability of the firm has been negative for several years. What is the best
explanation for this? - CORRECT ANSWER✔✔- The firm has been growing rapidly in
number of locations and factories.
Why are theories of how to achieve a competitive advantage not about sufficient causes, but
only necessary causes? - CORRECT ANSWER✔✔- The causes of firm performance are not
generalizable to all contexts.
Firms are made more capable of achieving a competitive advantage by having strong
competitors so they must adapt and become stronger in the market. - CORRECT
ANSWER✔✔- False
Accounting Value - CORRECT ANSWER✔✔- Based on historical data
Shareholder Value - CORRECT ANSWER✔✔- Based on predictions on the future
Economic Value - CORRECT ANSWER✔✔- Based on predictions of the future
Balanced Scorecard - CORRECT ANSWER✔✔- Based mostly on perceptions that can
change quickly
Research into the causes of high performance in firms ought to include studying firms that
have very low performance. - CORRECT ANSWER✔✔- True
, It is difficult to learn much about how to succeed at strategy when asking people to explain
their successes after they have become successful. - CORRECT ANSWER✔✔- True
In the long run,the major ways of evaluating firm performance will tend to be correlated with
each other. So this suggests that for a strategic analyst, it doesn't matter much what data on
firm performance is chosen. - CORRECT ANSWER✔✔- False
The higher proportion of assets that are tangible, the more useful accounting profit is as a
measure of firm performance for a strategic analyst. - CORRECT ANSWER✔✔- True
PESTEL - CORRECT ANSWER✔✔- Political
Economic
Sociocultural
Technological
Ecological
Legal
Political - CORRECT ANSWER✔✔- Non-market strategies
Economic - CORRECT ANSWER✔✔- Macro-economic conditions of a country or region
Sociocultural - CORRECT ANSWER✔✔- Cultures, norms, and value
Technological - CORRECT ANSWER✔✔- Application of new knowledge
Ecological - CORRECT ANSWER✔✔- Natural environment
Legal - CORRECT ANSWER✔✔- Governing laws, mandates, regulations
