Strategic Management: Concepts and Cases
Competitiveness and Globalization 14th Edition
by Hitt, Chapter 1 to 13 Covered
TEST BANK
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,Table of contents
1. Strategic Management and Strategic Competitiveness.
2. The External Environment: Opportunities, Threats, Industry Competition, and Competitor
Analysis.
3. The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive
Advantages
4. Business-Level Strategy.
5. Competitive Rivalry and Competitive Dynamics.
6. Corporate-Level Strategy.
7. Merger and Acquisition Strategies.
8. International Strategy.
9. Cooperative Strategy.
10. Corporate Governance.
11. Organizational Structure and Controls.
12. Strategic Leadership.
13. Strategic Entrepreneurship.
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, Chapter 01: Strategic Management and Strategic Competitiveness
True / False
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
a. True
b. False
ANSWER: True
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
ANSWER: False
3. The goal of strategy implementation is to develop a permanent competitive advantage.
a. True
b. False
ANSWER: False
4. Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result
from a particular investment.
a. True
b. False
ANSWER: True
5. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
6. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar
amount of risk.
a. True
b. False
ANSWER: True
7. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure the
performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
a. True
b. False
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, ANSWER: False
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Competitiveness and Globalization 14th Edition
by Hitt, Chapter 1 to 13 Covered
TEST BANK
Copyright Cengage Learning. Powered by Cognero. Page 1
,Table of contents
1. Strategic Management and Strategic Competitiveness.
2. The External Environment: Opportunities, Threats, Industry Competition, and Competitor
Analysis.
3. The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive
Advantages
4. Business-Level Strategy.
5. Competitive Rivalry and Competitive Dynamics.
6. Corporate-Level Strategy.
7. Merger and Acquisition Strategies.
8. International Strategy.
9. Cooperative Strategy.
10. Corporate Governance.
11. Organizational Structure and Controls.
12. Strategic Leadership.
13. Strategic Entrepreneurship.
Copyright Cengage Learning. Powered by Cognero. Page 2
, Chapter 01: Strategic Management and Strategic Competitiveness
True / False
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
a. True
b. False
ANSWER: True
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
ANSWER: False
3. The goal of strategy implementation is to develop a permanent competitive advantage.
a. True
b. False
ANSWER: False
4. Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result
from a particular investment.
a. True
b. False
ANSWER: True
5. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
6. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar
amount of risk.
a. True
b. False
ANSWER: True
7. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure the
performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 3
, ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 4
