man4720 chapter 1
Study online at https://quizlet.com/_hq9yo2
1. 1. Strategic competitiveness is achieved when a firm successfully formulates
and implements a value-creating strategy.
(A) True
(B) Fals: true
2. 2. Alligator Enterprises has earned above-average returns since its founding
five years ago. No other firm has challenged Alligator in its particular market
niche; therefore, the firm's owners can feel secure that Alligator has established
a competitive advantage.
(A) True
(B) False: False
3. The goal of strategy implementation is to develop a permanent competitive
advantage.
(A) True
(B) False: false
4. Risk in terms of financial returns reflects an investor's uncertainty about
economic gains or losses that will result from a particular investment.
(A) True
(B) False: True
5. 5. Average returns are those in excess of what an investor expects to earn
from other investments with a similar amount of risk
(A) True
(B) False: False
6. 6. Above average returns are those in excess of what an investor expects to
earn from other investments with similar stock prices.
(A) True
(B) False: True
7. 7. Returns can only be measured in accounting terms such as return on
assets, return on equity, or return on sales.
(A) True
(B) False: false
8. 8. To implement a firm's strategies, the firm takes actions to with the goal of
achieving strategic competitiveness and above average returns.
, man4720 chapter 1
Study online at https://quizlet.com/_hq9yo2
(A) True
(B) False: True
9. 9. Economies of scale and huge advertising budgets are just as effective in
the new competitive landscape as they were in the past.
(A) True
(B) False: false
10. 10. The two primary drivers of hypercompetition are the emergence of the
global economy and technology.
(A) True
(B) False: True
11. 11. The rate of technology diffusion has been steadily increasing over the
last two decades.
(A) True
(B) False: True
12. 12. While patents may be an effective way of protecting proprietary technol-
ogy, many firms competing in the electronics industry do not apply for patents
to prevent competitors from utilizing the technological knowledge that would
be included in the patent application.
(A) True
(B) False: True
13. 13. Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web
browser software.
(A) True
(B) False: False
14. 14. The rapid rate of technological diffusion has increased the competitive
benefits of patents.
(A) True
(B) False: False
15. 15. Developed countries still have major advantages in their access to in-
formation technology when compared to emerging economies because of the
significant cost of the infrastructure needed for computing power.
, man4720 chapter 1
Study online at https://quizlet.com/_hq9yo2
(A) True
(B) False: False
16. 16. The rate of growth of Internet-based applications could be affected by
strategies of Internet service providers charging users for downloading those
applications.
(A) True
(B) False: True
17. 17. The new CEO of Opacity Enterprises is determined to make the long-es-
tablished firm strategically flexible. The CEO feels that the employees of the
company have the ability, training, and resources to engage in continuous
learning. The CEO must encourage ambidextrous learning, absorbing new
knowledge and building incremental knowledge.
(A) True
(B) False: True
18. 18. The I/O (industrial organization) model assumes that the uniqueness of
a firm's resources and capabilities is the main source of above-average returns.
(A) True
(B) False: False
19. 19. The CEO of Twin Spires, Inc., is committed to using the expertise and
resources currently in the firm to serve the needs of the natural gardening com-
munity by providing rare and native plants to individuals and nurseries around
the United States. The perspective of the CEO of Twin Spires is consistent with
the assumptions of the industrial organization (I/O) model.
(A) True
(B) False: False
20. 20. The five forces model suggests that firms should target the industry with
the highest potential for above-average returns and then implement either a
cost-leadership strategy or a differentiation strategy.
(A) True
(B) False: true
21. 21. The uniqueness of a firm's resources and capabilities is the basis for a
firm's strategy and determines its ability to earn above-average returns under
Study online at https://quizlet.com/_hq9yo2
1. 1. Strategic competitiveness is achieved when a firm successfully formulates
and implements a value-creating strategy.
(A) True
(B) Fals: true
2. 2. Alligator Enterprises has earned above-average returns since its founding
five years ago. No other firm has challenged Alligator in its particular market
niche; therefore, the firm's owners can feel secure that Alligator has established
a competitive advantage.
(A) True
(B) False: False
3. The goal of strategy implementation is to develop a permanent competitive
advantage.
(A) True
(B) False: false
4. Risk in terms of financial returns reflects an investor's uncertainty about
economic gains or losses that will result from a particular investment.
(A) True
(B) False: True
5. 5. Average returns are those in excess of what an investor expects to earn
from other investments with a similar amount of risk
(A) True
(B) False: False
6. 6. Above average returns are those in excess of what an investor expects to
earn from other investments with similar stock prices.
(A) True
(B) False: True
7. 7. Returns can only be measured in accounting terms such as return on
assets, return on equity, or return on sales.
(A) True
(B) False: false
8. 8. To implement a firm's strategies, the firm takes actions to with the goal of
achieving strategic competitiveness and above average returns.
, man4720 chapter 1
Study online at https://quizlet.com/_hq9yo2
(A) True
(B) False: True
9. 9. Economies of scale and huge advertising budgets are just as effective in
the new competitive landscape as they were in the past.
(A) True
(B) False: false
10. 10. The two primary drivers of hypercompetition are the emergence of the
global economy and technology.
(A) True
(B) False: True
11. 11. The rate of technology diffusion has been steadily increasing over the
last two decades.
(A) True
(B) False: True
12. 12. While patents may be an effective way of protecting proprietary technol-
ogy, many firms competing in the electronics industry do not apply for patents
to prevent competitors from utilizing the technological knowledge that would
be included in the patent application.
(A) True
(B) False: True
13. 13. Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web
browser software.
(A) True
(B) False: False
14. 14. The rapid rate of technological diffusion has increased the competitive
benefits of patents.
(A) True
(B) False: False
15. 15. Developed countries still have major advantages in their access to in-
formation technology when compared to emerging economies because of the
significant cost of the infrastructure needed for computing power.
, man4720 chapter 1
Study online at https://quizlet.com/_hq9yo2
(A) True
(B) False: False
16. 16. The rate of growth of Internet-based applications could be affected by
strategies of Internet service providers charging users for downloading those
applications.
(A) True
(B) False: True
17. 17. The new CEO of Opacity Enterprises is determined to make the long-es-
tablished firm strategically flexible. The CEO feels that the employees of the
company have the ability, training, and resources to engage in continuous
learning. The CEO must encourage ambidextrous learning, absorbing new
knowledge and building incremental knowledge.
(A) True
(B) False: True
18. 18. The I/O (industrial organization) model assumes that the uniqueness of
a firm's resources and capabilities is the main source of above-average returns.
(A) True
(B) False: False
19. 19. The CEO of Twin Spires, Inc., is committed to using the expertise and
resources currently in the firm to serve the needs of the natural gardening com-
munity by providing rare and native plants to individuals and nurseries around
the United States. The perspective of the CEO of Twin Spires is consistent with
the assumptions of the industrial organization (I/O) model.
(A) True
(B) False: False
20. 20. The five forces model suggests that firms should target the industry with
the highest potential for above-average returns and then implement either a
cost-leadership strategy or a differentiation strategy.
(A) True
(B) False: true
21. 21. The uniqueness of a firm's resources and capabilities is the basis for a
firm's strategy and determines its ability to earn above-average returns under
