TEST j BANK j FOR
Strategic jManagement j6th jEdition jRothaermel jFrank
ISBN j9781265954574
Chapter j1-12 j Answers jare jat jthe jEnd jof jEach jChapter
Chapter j1
Student jname:
,1) A jgood jstrategy jallows ja jfirm jto jachieve jsuperior jperformance jand jsustainable
jcompetitive jadvantage jwithout jregard jto jthe jexternal jenvironment.
⊚ j true
⊚ j false
2) The jfollowing jstatement jby jthe jchief jexecutive jof jMegaFilms jmovie jstudio jshould jnot
jbe jused jas ja jstrategy: j“We jwill jproduce jthe jgreatest jfilms jof jthe j21st jcentury.”
⊚ j true
⊚ j false
3) The jthree jtasks jof jthe jAFI jstrategy jframework jare jto jAssemble ja jprototype, jFind ja jbuyer,
jand jIncorporate jfeedback.
⊚ j true
⊚ j false
4) Questions jasked jduring jthe jstrategy janalysis jstage jof jthe jAFI jframework jshould jinclude
j“What jeffects jdo jforces jin jthe jexternal jenvironment jhave jon jthe jfirm’s jpotential jto jgain
jand jsustain ja jcompetitive jadvantage?”
⊚ j true
⊚ j false
,5) Once ja jstrategy jhas jbeen jformulated jand jimplemented, jit jis jimportant jthat jthe jfirm jsticks
jto jit jno jmatter jwhat jhappens.
⊚ j true
⊚ j false
6) Because jthey jare ja jcrucial jcomponent jof ja jfirm’s jsuccess, jcustomers jare jconsidered
jinternal jstakeholders.
⊚ j true
⊚ j false
7) A jfirm jis jrequired jby jsociety jand jits jshareholders jto jmeet jits jethical jand
jphilanthropic jresponsibilities.
⊚ j true
⊚ j false
8) Stakeholder jimpact janalysis jprovides ja jdecision jtool jthat jhelps jstrategic jleaders jrecognize
jthe jneeds jof jdifferent jstakeholders.
⊚ j true
⊚ j false
9) Juan jwants jto jopen jhis jown jhot jdog jrestaurant jbut jdoesn’t jknow janything jabout jbusiness.
jHe jneeds jhelp jdetermining jwho jhis jcompetition jis, jhow jhe jshould jcraft jhis jstrategy jto
jcompete jand jhow jhe’ll jimplement jhis jstrategy jto jachieve ja jcompetitive jadvantage. jHe’s
jhired jyou jto jhelp jhim jget jstarted. jAs ja jresult, jyou jwill jprobably juse jwhich jof jthe
jfollowing?
A) AFI jstrategy jframework
B) Red jQueen jeffect
C) competitive jbenchmarking
D) Stakeholder jImpact janalysis
, 10) Roberta jis jinterested jin jthe jconcept jof jstrategy jand jdecides jto jcreate jher jown. jAs ja
jresult, jRoberta jsays jthat jher jstrategy jis jto jfocus jon jcompetitive jbenchmarking jto
jachieve jcompetitive jadvantage. jWhich jis jthe jbest jevaluation jof jRoberta’s jstatement?
A) Roberta’s jstrategy jis jclear, jbut jshe jshould jprovide jmore jdetail.
B) Roberta’s jstrategy jreveals ja jclear jstrategic jposition jand jtradeoff, jso jshe
jshould jproceed.
C) Roberta jshould jreevaluate jher jstatement jbecause jit jfails jto jmention jmore jthan
jone jstrategy.
D) Roberta jshould jreevaluate jher jstatement jbecause jit jfails jto jmeet jthe jprinciples jof
jwhat ja jstrategy jshould jbe.
11) Tony’s jPizza jShop jis jable jto jnet j$10,000 ja jweek; jthis jmakes jthe jshop jprofitable. jIts
jnumber jone jcompetitor, jLeo’s jPies, jis jalso jprofitable, jnetting j$12,000 ja jweek. jLil
jAnthony’s jPizza jPalace jnets j$13,000 ja jweek. jSince jTony’s jPizza jShop jis jprofitable, jwe
jcan jconclude jthat jit jhas ja jcompetitive jadvantage jin jits jindustry.
A) True—competitive jadvantage jis jachieved jthrough jprofitability jalone.
B) True—competitive jadvantage jis jachieved jsince jTony jhas ja jpositive jnet jincome.
C) False—competitive jadvantage jis jonly jachieved jby jgenerating jabove javerage
jreturns, jrelative jto jcompetition.
D) False—Tony jmore jthan jlikely jhas ja jsustained jcompetitive jadvantage jsince jhe’s
jbeen jin jbusiness jlonger.
12) Bill’s jAuto j& jAirplane jRepair jshop jis jable jto jgenerate ja jpositive jnet jincome jof
j$10,000 ja jweek, jwhich jis jabout jthe jsame jas jthe jincome jof ja jclose jcompetitor. jAs ja
jresult, jwe jcan jconclude jthat jthe jtwo jbusinesses jalso jhave ja jcompetitive jparity jin jthe
jindustry.
A) Correct—competitive jadvantage jis jachieved jthrough jprofitability jalone.
B) Correct—competitive jadvantage jis jachieved jsince jBill’s jAuto j& jAirplane jRepair
jshop jhas ja jpositive jnet jincome.
C) Correct—competitive jparity jis ja jperformance jof jtwo jor jmore jfirms jat jthe jsame jlevel.
D) Incorrect—Bill’s jAuto j& jAirplane jRepair jshop jmore jthan jlikely jhas ja
jsustained jcompetitive jadvantage jbecause jthe jbusiness jis jdiversified.
Strategic jManagement j6th jEdition jRothaermel jFrank
ISBN j9781265954574
Chapter j1-12 j Answers jare jat jthe jEnd jof jEach jChapter
Chapter j1
Student jname:
,1) A jgood jstrategy jallows ja jfirm jto jachieve jsuperior jperformance jand jsustainable
jcompetitive jadvantage jwithout jregard jto jthe jexternal jenvironment.
⊚ j true
⊚ j false
2) The jfollowing jstatement jby jthe jchief jexecutive jof jMegaFilms jmovie jstudio jshould jnot
jbe jused jas ja jstrategy: j“We jwill jproduce jthe jgreatest jfilms jof jthe j21st jcentury.”
⊚ j true
⊚ j false
3) The jthree jtasks jof jthe jAFI jstrategy jframework jare jto jAssemble ja jprototype, jFind ja jbuyer,
jand jIncorporate jfeedback.
⊚ j true
⊚ j false
4) Questions jasked jduring jthe jstrategy janalysis jstage jof jthe jAFI jframework jshould jinclude
j“What jeffects jdo jforces jin jthe jexternal jenvironment jhave jon jthe jfirm’s jpotential jto jgain
jand jsustain ja jcompetitive jadvantage?”
⊚ j true
⊚ j false
,5) Once ja jstrategy jhas jbeen jformulated jand jimplemented, jit jis jimportant jthat jthe jfirm jsticks
jto jit jno jmatter jwhat jhappens.
⊚ j true
⊚ j false
6) Because jthey jare ja jcrucial jcomponent jof ja jfirm’s jsuccess, jcustomers jare jconsidered
jinternal jstakeholders.
⊚ j true
⊚ j false
7) A jfirm jis jrequired jby jsociety jand jits jshareholders jto jmeet jits jethical jand
jphilanthropic jresponsibilities.
⊚ j true
⊚ j false
8) Stakeholder jimpact janalysis jprovides ja jdecision jtool jthat jhelps jstrategic jleaders jrecognize
jthe jneeds jof jdifferent jstakeholders.
⊚ j true
⊚ j false
9) Juan jwants jto jopen jhis jown jhot jdog jrestaurant jbut jdoesn’t jknow janything jabout jbusiness.
jHe jneeds jhelp jdetermining jwho jhis jcompetition jis, jhow jhe jshould jcraft jhis jstrategy jto
jcompete jand jhow jhe’ll jimplement jhis jstrategy jto jachieve ja jcompetitive jadvantage. jHe’s
jhired jyou jto jhelp jhim jget jstarted. jAs ja jresult, jyou jwill jprobably juse jwhich jof jthe
jfollowing?
A) AFI jstrategy jframework
B) Red jQueen jeffect
C) competitive jbenchmarking
D) Stakeholder jImpact janalysis
, 10) Roberta jis jinterested jin jthe jconcept jof jstrategy jand jdecides jto jcreate jher jown. jAs ja
jresult, jRoberta jsays jthat jher jstrategy jis jto jfocus jon jcompetitive jbenchmarking jto
jachieve jcompetitive jadvantage. jWhich jis jthe jbest jevaluation jof jRoberta’s jstatement?
A) Roberta’s jstrategy jis jclear, jbut jshe jshould jprovide jmore jdetail.
B) Roberta’s jstrategy jreveals ja jclear jstrategic jposition jand jtradeoff, jso jshe
jshould jproceed.
C) Roberta jshould jreevaluate jher jstatement jbecause jit jfails jto jmention jmore jthan
jone jstrategy.
D) Roberta jshould jreevaluate jher jstatement jbecause jit jfails jto jmeet jthe jprinciples jof
jwhat ja jstrategy jshould jbe.
11) Tony’s jPizza jShop jis jable jto jnet j$10,000 ja jweek; jthis jmakes jthe jshop jprofitable. jIts
jnumber jone jcompetitor, jLeo’s jPies, jis jalso jprofitable, jnetting j$12,000 ja jweek. jLil
jAnthony’s jPizza jPalace jnets j$13,000 ja jweek. jSince jTony’s jPizza jShop jis jprofitable, jwe
jcan jconclude jthat jit jhas ja jcompetitive jadvantage jin jits jindustry.
A) True—competitive jadvantage jis jachieved jthrough jprofitability jalone.
B) True—competitive jadvantage jis jachieved jsince jTony jhas ja jpositive jnet jincome.
C) False—competitive jadvantage jis jonly jachieved jby jgenerating jabove javerage
jreturns, jrelative jto jcompetition.
D) False—Tony jmore jthan jlikely jhas ja jsustained jcompetitive jadvantage jsince jhe’s
jbeen jin jbusiness jlonger.
12) Bill’s jAuto j& jAirplane jRepair jshop jis jable jto jgenerate ja jpositive jnet jincome jof
j$10,000 ja jweek, jwhich jis jabout jthe jsame jas jthe jincome jof ja jclose jcompetitor. jAs ja
jresult, jwe jcan jconclude jthat jthe jtwo jbusinesses jalso jhave ja jcompetitive jparity jin jthe
jindustry.
A) Correct—competitive jadvantage jis jachieved jthrough jprofitability jalone.
B) Correct—competitive jadvantage jis jachieved jsince jBill’s jAuto j& jAirplane jRepair
jshop jhas ja jpositive jnet jincome.
C) Correct—competitive jparity jis ja jperformance jof jtwo jor jmore jfirms jat jthe jsame jlevel.
D) Incorrect—Bill’s jAuto j& jAirplane jRepair jshop jmore jthan jlikely jhas ja
jsustained jcompetitive jadvantage jbecause jthe jbusiness jis jdiversified.
