,TEST BANK FOR q q
Strategic Management 6th Edition Rothaermel Frank
q q q q q
ISBN 9781265954574
q
Chapter 1-12 Answers are at the End of Each Chapter
q q q q q q q q q
Chapter 1 q
Student name:
q
1) A qgood qstrategy qallows qa qfirm qto qachieve qsuperior qperformance qand qsustainable
competitive qadvantage qwithout qregard qto qthe qexternal qenvironment.
q
⊚ q true
⊚ q false
2) The qfollowing qstatement qby qthe qchief qexecutive qof qMegaFilms qmovie qstudio qshould qnot
be qused qas qa qstrategy: q“We qwill qproduce qthe qgreatest qfilms qof qthe q21st qcentury.”
q
⊚ q true
⊚ q false
3) The qthree qtasks qof qthe qAFI qstrategy qframework qare qto qAssemble qa qprototype, qFind qa qbuyer,
and qIncorporate qfeedback.
q
⊚ q true
⊚ q false
4) Questions qasked qduring qthe qstrategy qanalysis qstage qof qthe qAFI qframework qshould qinclude
q“What qeffects qdo qforces qin qthe qexternal qenvironment qhave qon qthe qfirm’s qpotential qto qgain
qand qsustain qa qcompetitive qadvantage?”
⊚ q true
⊚ q false
,5) Once qa qstrategy qhas qbeen qformulated qand qimplemented, qit qis qimportant qthat qthe qfirm qsticks qto
it qno qmatter qwhat qhappens.
q
⊚ q true
⊚ q false
6) Because qthey qare qa qcrucial qcomponent qof qa qfirm’s qsuccess, qcustomers qare qconsidered
internal qstakeholders.
q
⊚ q true
⊚ q false
7) A qfirm qis qrequired qby qsociety qand qits qshareholders qto qmeet qits qethical qand
philanthropic qresponsibilities.
q
⊚ q true
⊚ q false
8) Stakeholder qimpact qanalysis qprovides qa qdecision qtool qthat qhelps qstrategic qleaders qrecognize
the qneeds qof qdifferent qstakeholders.
q
⊚ q true
⊚ q false
9) Juan qwants qto qopen qhis qown qhot qdog qrestaurant qbut qdoesn’t qknow qanything qabout qbusiness.
qHe qneeds qhelp qdetermining qwho qhis qcompetition qis, qhow qhe qshould qcraft qhis qstrategy qto
qcompete qand qhow qhe’ll qimplement qhis qstrategy qto qachieve qa qcompetitive qadvantage. qHe’s
qhired qyou qto qhelp qhim qget qstarted. qAs qa qresult, qyou qwill qprobably quse qwhich qof qthe
qfollowing?
A) AFI qstrategy qframework
B) Red qQueen qeffect
C) competitive qbenchmarking
D) Stakeholder qImpact qanalysis
, 10) Roberta qis qinterested qin qthe qconcept qof qstrategy qand qdecides qto qcreate qher qown. qAs qa
qresult, qRoberta qsays qthat qher qstrategy qis qto qfocus qon qcompetitive qbenchmarking qto
qachieve qcompetitive qadvantage. qWhich qis qthe qbest qevaluation qof qRoberta’s qstatement?
A) Roberta’s qstrategy qis qclear, qbut qshe qshould qprovide qmore qdetail.
B) Roberta’s qstrategy qreveals qa qclear qstrategic qposition qand qtradeoff, qso qshe
qshould qproceed.
C) Roberta qshould qreevaluate qher qstatement qbecause qit qfails qto qmention qmore qthan
qone qstrategy.
D) Roberta qshould qreevaluate qher qstatement qbecause qit qfails qto qmeet qthe qprinciples qof
qwhat qa qstrategy qshould qbe.
11) Tony’s qPizza qShop qis qable qto qnet q$10,000 qa qweek; qthis qmakes qthe qshop qprofitable. qIts
qnumber qone qcompetitor, qLeo’s qPies, qis qalso qprofitable, qnetting q$12,000 qa qweek. qLil
qAnthony’s qPizza qPalace qnets q$13,000 qa qweek. qSince qTony’s qPizza qShop qis qprofitable, qwe
qcan qconclude qthat qit qhas qa qcompetitive qadvantage qin qits qindustry.
A) True—competitive qadvantage qis qachieved qthrough qprofitability qalone.
B) True—competitive qadvantage qis qachieved qsince qTony qhas qa qpositive qnet qincome.
C) False—competitive qadvantage qis qonly qachieved qby qgenerating qabove qaverage
qreturns, qrelative qto qcompetition.
D) False—Tony qmore qthan qlikely qhas qa qsustained qcompetitive qadvantage qsince qhe’s
qbeen qin qbusiness qlonger.
12) Bill’s qAuto q& qAirplane qRepair qshop qis qable qto qgenerate qa qpositive qnet qincome qof q$10,000
qa qweek, qwhich qis qabout qthe qsame qas qthe qincome qof qa qclose qcompetitor. qAs qa qresult, qwe
qcan qconclude qthat qthe qtwo qbusinesses qalso qhave qa qcompetitive qparity qin qthe qindustry.
A) Correct—competitive qadvantage qis qachieved qthrough qprofitability qalone.
B) Correct—competitive qadvantage qis qachieved qsince qBill’s qAuto q& qAirplane qRepair
qshop qhas qa qpositive qnet qincome.
C) Correct—competitive qparity qis qa qperformance qof qtwo qor qmore qfirms qat qthe qsame qlevel.
D) Incorrect—Bill’s qAuto q& qAirplane qRepair qshop qmore qthan qlikely qhas qa
qsustained qcompetitive qadvantage qbecause qthe qbusiness qis qdiversified.
Strategic Management 6th Edition Rothaermel Frank
q q q q q
ISBN 9781265954574
q
Chapter 1-12 Answers are at the End of Each Chapter
q q q q q q q q q
Chapter 1 q
Student name:
q
1) A qgood qstrategy qallows qa qfirm qto qachieve qsuperior qperformance qand qsustainable
competitive qadvantage qwithout qregard qto qthe qexternal qenvironment.
q
⊚ q true
⊚ q false
2) The qfollowing qstatement qby qthe qchief qexecutive qof qMegaFilms qmovie qstudio qshould qnot
be qused qas qa qstrategy: q“We qwill qproduce qthe qgreatest qfilms qof qthe q21st qcentury.”
q
⊚ q true
⊚ q false
3) The qthree qtasks qof qthe qAFI qstrategy qframework qare qto qAssemble qa qprototype, qFind qa qbuyer,
and qIncorporate qfeedback.
q
⊚ q true
⊚ q false
4) Questions qasked qduring qthe qstrategy qanalysis qstage qof qthe qAFI qframework qshould qinclude
q“What qeffects qdo qforces qin qthe qexternal qenvironment qhave qon qthe qfirm’s qpotential qto qgain
qand qsustain qa qcompetitive qadvantage?”
⊚ q true
⊚ q false
,5) Once qa qstrategy qhas qbeen qformulated qand qimplemented, qit qis qimportant qthat qthe qfirm qsticks qto
it qno qmatter qwhat qhappens.
q
⊚ q true
⊚ q false
6) Because qthey qare qa qcrucial qcomponent qof qa qfirm’s qsuccess, qcustomers qare qconsidered
internal qstakeholders.
q
⊚ q true
⊚ q false
7) A qfirm qis qrequired qby qsociety qand qits qshareholders qto qmeet qits qethical qand
philanthropic qresponsibilities.
q
⊚ q true
⊚ q false
8) Stakeholder qimpact qanalysis qprovides qa qdecision qtool qthat qhelps qstrategic qleaders qrecognize
the qneeds qof qdifferent qstakeholders.
q
⊚ q true
⊚ q false
9) Juan qwants qto qopen qhis qown qhot qdog qrestaurant qbut qdoesn’t qknow qanything qabout qbusiness.
qHe qneeds qhelp qdetermining qwho qhis qcompetition qis, qhow qhe qshould qcraft qhis qstrategy qto
qcompete qand qhow qhe’ll qimplement qhis qstrategy qto qachieve qa qcompetitive qadvantage. qHe’s
qhired qyou qto qhelp qhim qget qstarted. qAs qa qresult, qyou qwill qprobably quse qwhich qof qthe
qfollowing?
A) AFI qstrategy qframework
B) Red qQueen qeffect
C) competitive qbenchmarking
D) Stakeholder qImpact qanalysis
, 10) Roberta qis qinterested qin qthe qconcept qof qstrategy qand qdecides qto qcreate qher qown. qAs qa
qresult, qRoberta qsays qthat qher qstrategy qis qto qfocus qon qcompetitive qbenchmarking qto
qachieve qcompetitive qadvantage. qWhich qis qthe qbest qevaluation qof qRoberta’s qstatement?
A) Roberta’s qstrategy qis qclear, qbut qshe qshould qprovide qmore qdetail.
B) Roberta’s qstrategy qreveals qa qclear qstrategic qposition qand qtradeoff, qso qshe
qshould qproceed.
C) Roberta qshould qreevaluate qher qstatement qbecause qit qfails qto qmention qmore qthan
qone qstrategy.
D) Roberta qshould qreevaluate qher qstatement qbecause qit qfails qto qmeet qthe qprinciples qof
qwhat qa qstrategy qshould qbe.
11) Tony’s qPizza qShop qis qable qto qnet q$10,000 qa qweek; qthis qmakes qthe qshop qprofitable. qIts
qnumber qone qcompetitor, qLeo’s qPies, qis qalso qprofitable, qnetting q$12,000 qa qweek. qLil
qAnthony’s qPizza qPalace qnets q$13,000 qa qweek. qSince qTony’s qPizza qShop qis qprofitable, qwe
qcan qconclude qthat qit qhas qa qcompetitive qadvantage qin qits qindustry.
A) True—competitive qadvantage qis qachieved qthrough qprofitability qalone.
B) True—competitive qadvantage qis qachieved qsince qTony qhas qa qpositive qnet qincome.
C) False—competitive qadvantage qis qonly qachieved qby qgenerating qabove qaverage
qreturns, qrelative qto qcompetition.
D) False—Tony qmore qthan qlikely qhas qa qsustained qcompetitive qadvantage qsince qhe’s
qbeen qin qbusiness qlonger.
12) Bill’s qAuto q& qAirplane qRepair qshop qis qable qto qgenerate qa qpositive qnet qincome qof q$10,000
qa qweek, qwhich qis qabout qthe qsame qas qthe qincome qof qa qclose qcompetitor. qAs qa qresult, qwe
qcan qconclude qthat qthe qtwo qbusinesses qalso qhave qa qcompetitive qparity qin qthe qindustry.
A) Correct—competitive qadvantage qis qachieved qthrough qprofitability qalone.
B) Correct—competitive qadvantage qis qachieved qsince qBill’s qAuto q& qAirplane qRepair
qshop qhas qa qpositive qnet qincome.
C) Correct—competitive qparity qis qa qperformance qof qtwo qor qmore qfirms qat qthe qsame qlevel.
D) Incorrect—Bill’s qAuto q& qAirplane qRepair qshop qmore qthan qlikely qhas qa
qsustained qcompetitive qadvantage qbecause qthe qbusiness qis qdiversified.
