Testbank
STRATEGICMANAGEMENT6THEDITION
J
Rothaermelfrank
ISBN 978-1266191862
J
,Chapter 1-12 answersareattheendofeachchapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitive ad
vantage without regardjto thejexternal environment.
⊚ true
⊚ false
2) Thejfollowing statement by the chief executive of megafilms movie studio should not be us
ed as a strategy: “wejwill producejthe greatestjfilms of the 21st century.”
⊚ true
⊚ false
3) Thejthree tasks of the afi strategy framework arejto assemble a prototype,jfindja buyer, and inc
orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysisjstage of the afi frameworkjshouldjinclude “wh at
effects do forces in the external environment havejon the firm’s potential to gain and sustainj a
competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important thatjthe firm sticks to itjnoj
matter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered internal sta
keholders.
⊚ true
⊚ false
7) A firm isjrequired by society and its shareholders to meet its ethical and philanthropic res
ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysisjprovidesjadecision tool that helps strategic leaders recognizejthe ne
eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants tojopen his own hot dogjrestaurant but doesn’t know anything about business. He ne
eds help determiningjwho his competitionjis, how he should craft his strategy to compete and h
ow he’ll implement his strategy to achieve a competitivejadvantage. He’s hired you tojhelp him
get started. As a result, you will probably use which of the following?
A) Afi strategy framework
B) Red queen effect
C) Competitivejbenchmarking
D) Stakeholder impact analysis
, 10) Roberta is interested in the concept of strategy andjdecides to createjher own. As a result, ro
berta saysjthat her strategy is to focus on competitivejbenchmarking to achieve competitive
advantage. Which isjthe best evaluation of roberta’s statement?
A) Roberta’s strategy is clear, but she should providejmore detail.
B) Roberta’s strategy reveals a clear strategic positionjandjtradeoff, so she shouldjpr
oceed.
C) Roberta should reevaluate her statement becausejit fails to mention morejthan onejstr
ategy.
D) Roberta shouldjreevaluatejher statement because it fails to meetjthe principles of what ajs
trategy shouldjbe.
11) Tony’s pizzajshop isjable to netj$10,000 a week; thisjmakes the shopjprofitable. Its number on
e competitor, leo’s pies, is also profitable, nettingj$12,000ja week. Lil anthony’s pizza palac e
nets $13,000ja week. Since tony’s pizzajshop is profitable, wejcan concludejthatjit has a co
mpetitive advantage in itsjindustry.
A) True—competitive advantage is achievedjthrough profitability alone.
B) True—competitive advantagejis achieved sincejtony has ajpositive net income.
C) False—
Competitive advantageis only achieved by generating above averagejreturns, relative
t o competition.
D) False—
Tony more than likely hasjajsustained competitive advantage sincejhe’s beenjin busines
s longer.
12) Bill’sjauto & airplane repair shop isjable to generateja positive netjincomejof $10,000 a we ek,
which isjabout the samejas the income of a close competitor. As a result, we can conclud e
that the two businessesjalso haveja competitive parity injthe industry.
A) Correct—competitive advantagejis achieved through profitability alone.
B) Correct—
Competitive advantage is achieved since bill’s autoj& airplane repair shopjhas a positi
ve net income.
C) Correct—competitive parity is ajperformance of two or more firms at thejsame level.
D) Incorrect—
Bill’s autoj& airplane repair shop more than likely has a sustained competitive a
dvantage because the business isjdiversified.
STRATEGICMANAGEMENT6THEDITION
J
Rothaermelfrank
ISBN 978-1266191862
J
,Chapter 1-12 answersareattheendofeachchapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitive ad
vantage without regardjto thejexternal environment.
⊚ true
⊚ false
2) Thejfollowing statement by the chief executive of megafilms movie studio should not be us
ed as a strategy: “wejwill producejthe greatestjfilms of the 21st century.”
⊚ true
⊚ false
3) Thejthree tasks of the afi strategy framework arejto assemble a prototype,jfindja buyer, and inc
orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysisjstage of the afi frameworkjshouldjinclude “wh at
effects do forces in the external environment havejon the firm’s potential to gain and sustainj a
competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important thatjthe firm sticks to itjnoj
matter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered internal sta
keholders.
⊚ true
⊚ false
7) A firm isjrequired by society and its shareholders to meet its ethical and philanthropic res
ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysisjprovidesjadecision tool that helps strategic leaders recognizejthe ne
eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants tojopen his own hot dogjrestaurant but doesn’t know anything about business. He ne
eds help determiningjwho his competitionjis, how he should craft his strategy to compete and h
ow he’ll implement his strategy to achieve a competitivejadvantage. He’s hired you tojhelp him
get started. As a result, you will probably use which of the following?
A) Afi strategy framework
B) Red queen effect
C) Competitivejbenchmarking
D) Stakeholder impact analysis
, 10) Roberta is interested in the concept of strategy andjdecides to createjher own. As a result, ro
berta saysjthat her strategy is to focus on competitivejbenchmarking to achieve competitive
advantage. Which isjthe best evaluation of roberta’s statement?
A) Roberta’s strategy is clear, but she should providejmore detail.
B) Roberta’s strategy reveals a clear strategic positionjandjtradeoff, so she shouldjpr
oceed.
C) Roberta should reevaluate her statement becausejit fails to mention morejthan onejstr
ategy.
D) Roberta shouldjreevaluatejher statement because it fails to meetjthe principles of what ajs
trategy shouldjbe.
11) Tony’s pizzajshop isjable to netj$10,000 a week; thisjmakes the shopjprofitable. Its number on
e competitor, leo’s pies, is also profitable, nettingj$12,000ja week. Lil anthony’s pizza palac e
nets $13,000ja week. Since tony’s pizzajshop is profitable, wejcan concludejthatjit has a co
mpetitive advantage in itsjindustry.
A) True—competitive advantage is achievedjthrough profitability alone.
B) True—competitive advantagejis achieved sincejtony has ajpositive net income.
C) False—
Competitive advantageis only achieved by generating above averagejreturns, relative
t o competition.
D) False—
Tony more than likely hasjajsustained competitive advantage sincejhe’s beenjin busines
s longer.
12) Bill’sjauto & airplane repair shop isjable to generateja positive netjincomejof $10,000 a we ek,
which isjabout the samejas the income of a close competitor. As a result, we can conclud e
that the two businessesjalso haveja competitive parity injthe industry.
A) Correct—competitive advantagejis achieved through profitability alone.
B) Correct—
Competitive advantage is achieved since bill’s autoj& airplane repair shopjhas a positi
ve net income.
C) Correct—competitive parity is ajperformance of two or more firms at thejsame level.
D) Incorrect—
Bill’s autoj& airplane repair shop more than likely has a sustained competitive a
dvantage because the business isjdiversified.
