Strategic Management, 6th Edition 2025 By
Rothaermel Frank, Verified Chapters 1 - 12,
Complete Newest Version
A good strategy allows a firm to achieve superior performance and sustainable
competitive
advantage without regard to the external environment.
False
The following statement by the chief executive of MegaFilms movie studio
should not be used as a strategy: "We will produce the greatest films of the 21st
century."
True
The three tasks of the AFI strategy framework are to Assemble a prototype, Find
a buyer, and Incorporate feedback.
False
Questions asked during the strategy analysis stage of the AFI framework should
include "What effects do forces in the external environment have on the firm's
potential to gain and sustain a competitive advantage?"
True
Once a strategy has been formulated and implemented, it is important that the
firm sticks to it no matter what happens.
,False
Because they are a crucial component of a firm's success, customers are
considered internal stakeholders.
False
A firm is required by society and its shareholders to meet its ethical and
philanthropic responsibilities.
False
Stakeholder impact analysis provides a decision tool that helps strategic leaders
recognize the needs of different stakeholders.
True
Juan wants to open his own hot dog restaurant but doesn't know anything
about business. He needs help determining who his competition is, how he
should craft his strategy to compete and how he'll implement his strategy to
achieve a competitive advantage. He's hired you to help him get started. As a
result, you will probably use which of the following?
AFI strategy framework
Roberta is interested in the concept of strategy and decides to create her own.
As a result, Roberta says that her strategy is to focus on competitive
benchmarking to achieve competitive advantage. Which is the best evaluation
of Roberta's statement?
Roberta should reevaluate her statement because it fails to meet the principles of
what a strategy should be.
,Tony's Pizza Shop is able to net $10,000 a week; this makes the shop profitable.
Its number one competitor, Leo's Pies, is also profitable, netting $12,000 a
week. Lil Anthony's Pizza Palace nets $13,000 a week. Since Tony's Pizza Shop is
profitable, we can conclude that it has a competitive advantage in its industry.
False—competitive advantage is only achieved by generating above average
returns, relative to competition.
Bill's Auto & Airplane Repair shop is able to generate a positive net income of
$10,000 a week, which is about the same as the income of a close competitor.
As a result, we can conclude that the two businesses also have a competitive
parity in the industry.
Correct—competitive parity is a performance of two or more firms at the same
level.
To better achieve a competitive advantage, firms must now adopt a holistic
approach towards satisfying multiple stakeholders opposed to focusing on the
needs of their shareholders. What term is used for this approach?
Stakeholder strategy
All of the following are external stakeholders except which of the following?
Competitors
John is a bit confused about the difference between stakeholders and
stockholders. You meet with John and inform him that the main difference is
that
, Stakeholders can be both internal and external while stockholders own shares of
a firm and are classified as internal to the firm.
Which of the following three important stakeholder attributes should managers
pay special close attention to in order to better understand stakeholder impact
analysis?
Power, legitimacy, and urgency
Most consumers and investors today want the firms they do business with to
look beyond just the profit motive. In fact, they want firms that behave legally
and ethically while also giving back to their communities via philanthropic
activities. The framework that attempts to reconcile these wants is known as
corporate social responsibility.
Which of the following terms describes the guiding policy to address the
competitive challenge, and uses corporate- and business-level strategy?
formulation
In strategic management, strategists engage in three pillars. These three pillars
include the________ of major goals and objectives.
implementation
Which of the following tasks in the AFI strategy framework involves evaluating
the internal and external environments in which a firm operates?
Analysis
The goal of a good strategy is focused primarily on
Rothaermel Frank, Verified Chapters 1 - 12,
Complete Newest Version
A good strategy allows a firm to achieve superior performance and sustainable
competitive
advantage without regard to the external environment.
False
The following statement by the chief executive of MegaFilms movie studio
should not be used as a strategy: "We will produce the greatest films of the 21st
century."
True
The three tasks of the AFI strategy framework are to Assemble a prototype, Find
a buyer, and Incorporate feedback.
False
Questions asked during the strategy analysis stage of the AFI framework should
include "What effects do forces in the external environment have on the firm's
potential to gain and sustain a competitive advantage?"
True
Once a strategy has been formulated and implemented, it is important that the
firm sticks to it no matter what happens.
,False
Because they are a crucial component of a firm's success, customers are
considered internal stakeholders.
False
A firm is required by society and its shareholders to meet its ethical and
philanthropic responsibilities.
False
Stakeholder impact analysis provides a decision tool that helps strategic leaders
recognize the needs of different stakeholders.
True
Juan wants to open his own hot dog restaurant but doesn't know anything
about business. He needs help determining who his competition is, how he
should craft his strategy to compete and how he'll implement his strategy to
achieve a competitive advantage. He's hired you to help him get started. As a
result, you will probably use which of the following?
AFI strategy framework
Roberta is interested in the concept of strategy and decides to create her own.
As a result, Roberta says that her strategy is to focus on competitive
benchmarking to achieve competitive advantage. Which is the best evaluation
of Roberta's statement?
Roberta should reevaluate her statement because it fails to meet the principles of
what a strategy should be.
,Tony's Pizza Shop is able to net $10,000 a week; this makes the shop profitable.
Its number one competitor, Leo's Pies, is also profitable, netting $12,000 a
week. Lil Anthony's Pizza Palace nets $13,000 a week. Since Tony's Pizza Shop is
profitable, we can conclude that it has a competitive advantage in its industry.
False—competitive advantage is only achieved by generating above average
returns, relative to competition.
Bill's Auto & Airplane Repair shop is able to generate a positive net income of
$10,000 a week, which is about the same as the income of a close competitor.
As a result, we can conclude that the two businesses also have a competitive
parity in the industry.
Correct—competitive parity is a performance of two or more firms at the same
level.
To better achieve a competitive advantage, firms must now adopt a holistic
approach towards satisfying multiple stakeholders opposed to focusing on the
needs of their shareholders. What term is used for this approach?
Stakeholder strategy
All of the following are external stakeholders except which of the following?
Competitors
John is a bit confused about the difference between stakeholders and
stockholders. You meet with John and inform him that the main difference is
that
, Stakeholders can be both internal and external while stockholders own shares of
a firm and are classified as internal to the firm.
Which of the following three important stakeholder attributes should managers
pay special close attention to in order to better understand stakeholder impact
analysis?
Power, legitimacy, and urgency
Most consumers and investors today want the firms they do business with to
look beyond just the profit motive. In fact, they want firms that behave legally
and ethically while also giving back to their communities via philanthropic
activities. The framework that attempts to reconcile these wants is known as
corporate social responsibility.
Which of the following terms describes the guiding policy to address the
competitive challenge, and uses corporate- and business-level strategy?
formulation
In strategic management, strategists engage in three pillars. These three pillars
include the________ of major goals and objectives.
implementation
Which of the following tasks in the AFI strategy framework involves evaluating
the internal and external environments in which a firm operates?
Analysis
The goal of a good strategy is focused primarily on
