Strategic Management Concepts and Cases Competitiveness and Globalization 11th Edition by Michael A. Hitt - Test Bank

,True / False
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating
strategy.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 4
LEARNING OBJECTIVES: STMA.HITT.15.01.01 - 01.01
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

2. Alligator Enterprises has earned above-average returns since its founding five years ago. Since no other firm has
challenged Alligator in its particular market niche, the firm's owners can feel secure that Alligator has established a
competitive advantage.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 5
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Application
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Application

3. The goal of strategic management is to develop a competitive advantage that is permanent.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 5
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Reflective Thinking | DISC: Strategy | Bloom: Comprehension

,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

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 5
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

5. 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: False
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 5
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

6. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 5
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

, 7. Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they
were in the past, but they must be reinforced by strategic flexibility.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 7
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Reflective
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

8. The two primary drivers of hypercompetition are the emergence of the global economy and technology.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Technology
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Analytic | DISC: Strategy | Bloom: Knowledge

9. The rate of technology diffusion has been steadily increasing over the last two decades.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 11
LEARNING OBJECTIVES: STMA.HITT.13. - 1.4
NATIONAL STANDARDS: United States - BUSPROG Technology
STATE STANDARDS: United States - NJ - DISC: - Information Technologies
United States - AK - DISC: Motivation Concepts - Motivation Concepts
KEYWORDS: Bloom's: Knowledge
NOTES: AACSB: Technology | DISC: Information Technologies | Bloom: Knowledge