Frank Rothaermel, Strategic Management, 6th Edition TEST BANK, Verified Chapters 1 - 12, Complete Newest Version

TEST BANK FOR
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STRATEGIC MANAGEMENT 6TH EDITION ROTHAER
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MEL FRANK qx




ISBN 978-1266191862
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,Chapter 1-12 Answers are at the End of Each Chapter
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Chapter 1 qx




Student name: qx



1) A good strategy allows a firm to achieve superior performance and sustainable competiti
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ve advantage without regard to the external environment.
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⊚ true q x



⊚ false q x




2) The following statement by the chief executive of MegaFilms movie studio should not
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be used as a strategy: “We will produce the greatest films of the 21st century.”
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⊚ true q x


⊚ false q x




3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, a
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nd Incorporate feedback.
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⊚ true q x


⊚ false q x




4) Questions asked during the strategy analysis stage of the AFI framework should include
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“What effects do forces in the external environment have on the firm’s potential to gain a
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nd sustain a competitive advantage?”
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⊚ true q x


⊚ false q x

,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to
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it no matter what happens.
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⊚ true q x



⊚ false q x




6) Because they are a crucial component of a firm’s success, customers are considered intern
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al stakeholders.
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⊚ true q x



⊚ false q x




7) A firm is required by society and its shareholders to meet its ethical and philanthrop
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ic responsibilities.
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⊚ true q x



⊚ false q x




8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize th
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e needs of different stakeholders.
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⊚ true q x



⊚ false q x




9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business.
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He needs help determining who his competition is, how he should craft his strategy to co
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mpete and how he’ll implement his strategy to achieve a competitive advantage. He’s hire
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d you to help him get started. As a result, you will probably use which of the following?
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A) AFI strategy framework qx qx


B) Red Queen effect qx qx


C) competitive benchmarking qx


D) Stakeholder Impact analysis qx qx

, 10) Roberta is interested in the concept of strategy and decides to create her own. As a resu
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lt, Roberta says that her strategy is to focus on competitive benchmarking to achieve
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competitive advantage. Which is the best evaluation of Roberta’s statement?
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A) Roberta’s strategy is clear, but she should provide more detail. qx qx qx qx qx qx qx qx qx



B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she shoul
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d proceed. qx


C) Roberta should reevaluate her statement because it fails to mention more than o
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ne strategy. qx


D) Roberta should reevaluate her statement because it fails to meet the principles of wh
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at a strategy should be. qx qx qx qx




11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its num
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ber one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s
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Pizza Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclu
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de that it has a competitive advantage in its industry.
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A) True—competitive advantage is achieved through profitability alone. qx qx qx qx qx qx



B) True—competitive advantage is achieved since Tony has a positive net income. qx qx qx qx qx qx qx qx qx qx



C) False—
competitive advantage is only achieved by generating above average returns, relati
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ve to competition. qx qx



D) False—
Tony more than likely has a sustained competitive advantage since he’s been in bu
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siness longer. qx




12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,00
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0 a week, which is about the same as the income of a close competitor. As a result, w
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e can conclude that the two businesses also have a competitive parity in the industry.
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A) Correct—competitive advantage is achieved through profitability alone. qx qx qx qx qx qx



B) Correct—
competitive advantage is achieved since Bill’s Auto & Airplane Repair shop has a p
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ositive net income. qx qx



C) Correct—competitive parity is a performance of two or more firms at the same level. qx qx qx qx qx qx qx qx qx qx qx qx qx



D) Incorrect—
Bill’s Auto & Airplane Repair shop more than likely has a sustained competiti
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ve advantage because the business is diversified.
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