CRAFTING AND EXECUTING STRATEGY: CONCEPTS: 2024
RELEASE 23RD EDITION THOMPSON, PETERAF| TESTED AND
APPROVED
1.What is the field of management that focuses on attaining competitive advantage by
combining analysis, formulation, and implementation?
a. management of stakeholder impact
b. human resources management
c. management of foundational behavior
d. strategic management - ANSWER d. strategic management
2.What is strategy?
a. a sustainable and dominant market share
b. the set of actions a firm takes to achieve a competitive advantage
c. a decision based on external situational analysis
d. a decision based on internal situational analysis - ANSWER b. the set of actions a firm takes to
achieve a competitive advantage
3.A good strategy consists of three elements. The first element is accomplished through analysis
of the firm's external and internal environments. We also call this______.
a. a guiding policy to address the competitive advantage
b. a set of coherent actions to implement the firms' guiding policy
c. a diagnosis of the competitive advantage - ANSWER c. a diagnosis of the competitive
advantage
4.What must a firm do after diagnosing its specific competitive challenge?
a Collect investments from stockholders
b. Implement a set of coherent actions
,c. Create an effective guiding policy
d. Identify its primary competitors - ANSWER c. Create an effective guiding policy
5.In order to determine if Home Depot has a competitive advantage, we must compare Home
Depot's performance to ____.
a. only non-US-based firms
b. a firm in the technology industry
c. its past financial performance
d. the performance of other firms in its industry - ANSWER d. the performance of other firms in
its industry
6.Which of the following elements comprise strategic management?
-definition
-analysis
-realization
-formulation
-implementation - ANSWER analysis, implementation, formulation
7.Burger Bomb has been outperforming other burger restaurants in recent years. This indicates
that Burger Bomb has which of the following?
a. Strategic leadership
b. A superior product
c. A statistical advantage
d. A competitive advantage - ANSWER d. A competitive advantage
8.Burger Bomb is a new hamburger restaurant. In order to compete successfully against its
many competitors, Burger Bomb has decided to focus on quality and an interesting, unique
menu that uses locally sourced, organic ingredients. These ideas are Burger Bomb's
Blank______.
,a. vision
b. strategy
c. core values statement
d. competitive parity - ANSWER b. strategy
9.Based on its long dominance as a coffeehouse chain, Starbucks has ______.
a. competitive parity
b. a competitive disadvantage
c. a sustainable competitive advantage
d. an absolute advantage - ANSWER c. a sustainable competitive advantage
10.A good strategy consists of three elements. The second element is accomplished through
strategy formulation, resulting in the firm's functional, business-level, and corporate-level
strategies. This is also called ______.
a. a guiding policy to address the competitive challenge
b. a set of coherent actions to implement the firms' guiding policy
c. a diagnosis of the competitive challenge - ANSWER a. a guiding policy to address the
competitive challenge
11.A(n) ______ occurs when a firm performs below the industry average or is outperformed by
its competitors.
a. underperforming norm
b. purchasing parity
c. competitive disadvantage
d. competitive parity
e. negative advantage - ANSWER c. competitive disadvantage
12.Effective guiding policy is supported by and stays consistent through the use of ______.
, a. trade-offs
b. grandiose statements
c. social responsibilities
d. strategic commitments - ANSWER d. strategic commitments
13.A competitive advantage ______.
a. is assessed relative to other competitors in the industry
b. places a firm at a disadvantage in regards to its ROI
c. is based on the return of invested capital over a 15-year period
d. takes into consideration globalization and rival factors - ANSWER a. is assessed relative to
other competitors in the industry
14.When does a situation of competitive parity exist?
a. Two or more firms enter into a strategic alliance.
b. Two or more firms rely on international outsourcing to remain competitive.
c. The performance of two or more firms is superior to the industry average.
d. Two or more firms achieve the same performance results. - ANSWER d. Two or more firms
achieve the same performance results.
15.When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved ______.
a. combined ideology
b. prolonged management
c. fiscal debilitation
d. a competitive advantage - ANSWER d. a competitive advantage
16.In which of the following situations can a firm providing goods and services gain a
competitive advantage?
RELEASE 23RD EDITION THOMPSON, PETERAF| TESTED AND
APPROVED
1.What is the field of management that focuses on attaining competitive advantage by
combining analysis, formulation, and implementation?
a. management of stakeholder impact
b. human resources management
c. management of foundational behavior
d. strategic management - ANSWER d. strategic management
2.What is strategy?
a. a sustainable and dominant market share
b. the set of actions a firm takes to achieve a competitive advantage
c. a decision based on external situational analysis
d. a decision based on internal situational analysis - ANSWER b. the set of actions a firm takes to
achieve a competitive advantage
3.A good strategy consists of three elements. The first element is accomplished through analysis
of the firm's external and internal environments. We also call this______.
a. a guiding policy to address the competitive advantage
b. a set of coherent actions to implement the firms' guiding policy
c. a diagnosis of the competitive advantage - ANSWER c. a diagnosis of the competitive
advantage
4.What must a firm do after diagnosing its specific competitive challenge?
a Collect investments from stockholders
b. Implement a set of coherent actions
,c. Create an effective guiding policy
d. Identify its primary competitors - ANSWER c. Create an effective guiding policy
5.In order to determine if Home Depot has a competitive advantage, we must compare Home
Depot's performance to ____.
a. only non-US-based firms
b. a firm in the technology industry
c. its past financial performance
d. the performance of other firms in its industry - ANSWER d. the performance of other firms in
its industry
6.Which of the following elements comprise strategic management?
-definition
-analysis
-realization
-formulation
-implementation - ANSWER analysis, implementation, formulation
7.Burger Bomb has been outperforming other burger restaurants in recent years. This indicates
that Burger Bomb has which of the following?
a. Strategic leadership
b. A superior product
c. A statistical advantage
d. A competitive advantage - ANSWER d. A competitive advantage
8.Burger Bomb is a new hamburger restaurant. In order to compete successfully against its
many competitors, Burger Bomb has decided to focus on quality and an interesting, unique
menu that uses locally sourced, organic ingredients. These ideas are Burger Bomb's
Blank______.
,a. vision
b. strategy
c. core values statement
d. competitive parity - ANSWER b. strategy
9.Based on its long dominance as a coffeehouse chain, Starbucks has ______.
a. competitive parity
b. a competitive disadvantage
c. a sustainable competitive advantage
d. an absolute advantage - ANSWER c. a sustainable competitive advantage
10.A good strategy consists of three elements. The second element is accomplished through
strategy formulation, resulting in the firm's functional, business-level, and corporate-level
strategies. This is also called ______.
a. a guiding policy to address the competitive challenge
b. a set of coherent actions to implement the firms' guiding policy
c. a diagnosis of the competitive challenge - ANSWER a. a guiding policy to address the
competitive challenge
11.A(n) ______ occurs when a firm performs below the industry average or is outperformed by
its competitors.
a. underperforming norm
b. purchasing parity
c. competitive disadvantage
d. competitive parity
e. negative advantage - ANSWER c. competitive disadvantage
12.Effective guiding policy is supported by and stays consistent through the use of ______.
, a. trade-offs
b. grandiose statements
c. social responsibilities
d. strategic commitments - ANSWER d. strategic commitments
13.A competitive advantage ______.
a. is assessed relative to other competitors in the industry
b. places a firm at a disadvantage in regards to its ROI
c. is based on the return of invested capital over a 15-year period
d. takes into consideration globalization and rival factors - ANSWER a. is assessed relative to
other competitors in the industry
14.When does a situation of competitive parity exist?
a. Two or more firms enter into a strategic alliance.
b. Two or more firms rely on international outsourcing to remain competitive.
c. The performance of two or more firms is superior to the industry average.
d. Two or more firms achieve the same performance results. - ANSWER d. Two or more firms
achieve the same performance results.
15.When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved ______.
a. combined ideology
b. prolonged management
c. fiscal debilitation
d. a competitive advantage - ANSWER d. a competitive advantage
16.In which of the following situations can a firm providing goods and services gain a
competitive advantage?
