Test Bank Complete_
Strategic Management 6th Edition, (2026 Updates)
By Frank T. Rothaermel
All Chapter 1-12| Latest Version| Verified Answers| Rated A+
,chapter 1. What is strategy? ____________________________________________________ 3
answer key ______________________________________________________________________ 46
chapter 2. Strategic leadership: managing the strategy process_______________________ 48
answer key ______________________________________________________________________ 86
chapter 3. External analysis: industry structure, competitive forces, and strategic groups __ 91
answer key _____________________________________________________________________ 126
chapter 4. Internal analysis: resources, capabilities, and core competencies ____________ 131
answer key _____________________________________________________________________ 169
chapter 5. Shared value and competitive advantage _______________________________ 174
answer key _____________________________________________________________________ 210
chapter 6. Business strategy: differentiation, cost leadership, and blue oceans _________ 215
answer key _____________________________________________________________________ 252
chapter 7. Business strategy: innovation, entrepreneurship, and platforms ____________ 256
answer key _____________________________________________________________________ 291
chapter 8. Corporate strategy: vertical integration and diversification ________________ 295
answer key _____________________________________________________________________ 332
chapter 9. Corporate strategy: strategic alliances, mergers, and acquisitions ___________ 336
answer key _____________________________________________________________________ 374
chapter 10. Global strategy: competing around the world __________________________ 378
answer key _____________________________________________________________________ 417
chapter 11. Organizational design: structure, culture, and control ____________________ 422
answer key _____________________________________________________________________ 457
chapter 12. Corporate governance, business ethics, and business models ______________ 461
answer key _____________________________________________________________________ 501
,Chapter 1. What is strategy?
frank t. Rothaermel: strategic management 6th edition, test bank
Student name: _________________________________
1) juan wants to open his own hot dog restaurant but doesn’t know anything about
business. He needs help determining who his competition is, how he should craft his
strategy to compete and how he’ll implement his strategy to achieve a competitive
advantage. He’s hired you to help him get started. As a result, you will probably use
which of the following?
A) afi strategy framework
B) red queen effect
C) competitive benchmarking
D) stakeholder impact analysis
Ans>>A)
the afi (analyze, formulate, implement) strategy framework is designed to help
businesses identify competitors, craft strategies, and implement them to achieve
competitive advantage. It provides a structured approach for beginners like juan to
understand the competitive landscape and build a sustainable plan. The other options are
narrower concepts: the red queen effect refers to constant competition, benchmarking
compares performance, and stakeholder analysis focuses on stakeholder needs rather than
overall strategy.
2) roberta is interested in the concept of strategy and decides to create her own. As a
result, roberta says that her strategy is to focus on competitive benchmarking to achieve
competitive advantage. Which is the best evaluation of roberta’s statement?
A) roberta’s strategy is clear, but she should provide more detail.
B) roberta’s strategy reveals a clear strategic position and tradeoff, so she should proceed.
, C) roberta should reevaluate her statement because it fails to mention more than one
strategy.
D) roberta should reevaluate her statement because it fails to meet the principles of what
a strategy should be.
Ans>>D)
a true strategy must define a clear position, include trade-offs, and provide a roadmap for
achieving competitive advantage. Simply stating "competitive benchmarking" is not a
strategy—it’s a tool. Roberta’s statement lacks the essential elements of a strategy, such
as differentiation, long-term goals, and implementation plans.
3) tony’s pizza shop is able to net $10,000 a week; this makes the shop profitable. Its
number one competitor, leo’s pies, is also profitable, netting $12,000 a week. Lil
anthony’s pizza palace nets $13,000 a week. Since tony’s pizza shop is profitable, we can
conclude that it has a competitive advantage in its industry.
A) true—competitive advantage is achieved through profitability alone.
B) true—competitive advantage is achieved since tony has a positive net income.
C) false—competitive advantage is only achieved by generating above average returns,
relative to competition.
D) false—tony more than likely has a sustained competitive advantage since he’s been in
business longer.
Ans>>C)
profitability alone does not equal competitive advantage. Competitive advantage requires
outperforming rivals consistently. Since tony’s pizza shop earns less than its competitors,
it is profitable but does not have a competitive advantage. Competitive advantage is
measured relative to industry peers, not just by being profitable.
4) bill’s auto & airplane repair shop is able to generate a positive net income of $10,000 a
week, which is about the same as the income of a close competitor. As a result, we can
conclude that the two businesses also have a competitive parity in the industry.
Strategic Management 6th Edition, (2026 Updates)
By Frank T. Rothaermel
All Chapter 1-12| Latest Version| Verified Answers| Rated A+
,chapter 1. What is strategy? ____________________________________________________ 3
answer key ______________________________________________________________________ 46
chapter 2. Strategic leadership: managing the strategy process_______________________ 48
answer key ______________________________________________________________________ 86
chapter 3. External analysis: industry structure, competitive forces, and strategic groups __ 91
answer key _____________________________________________________________________ 126
chapter 4. Internal analysis: resources, capabilities, and core competencies ____________ 131
answer key _____________________________________________________________________ 169
chapter 5. Shared value and competitive advantage _______________________________ 174
answer key _____________________________________________________________________ 210
chapter 6. Business strategy: differentiation, cost leadership, and blue oceans _________ 215
answer key _____________________________________________________________________ 252
chapter 7. Business strategy: innovation, entrepreneurship, and platforms ____________ 256
answer key _____________________________________________________________________ 291
chapter 8. Corporate strategy: vertical integration and diversification ________________ 295
answer key _____________________________________________________________________ 332
chapter 9. Corporate strategy: strategic alliances, mergers, and acquisitions ___________ 336
answer key _____________________________________________________________________ 374
chapter 10. Global strategy: competing around the world __________________________ 378
answer key _____________________________________________________________________ 417
chapter 11. Organizational design: structure, culture, and control ____________________ 422
answer key _____________________________________________________________________ 457
chapter 12. Corporate governance, business ethics, and business models ______________ 461
answer key _____________________________________________________________________ 501
,Chapter 1. What is strategy?
frank t. Rothaermel: strategic management 6th edition, test bank
Student name: _________________________________
1) juan wants to open his own hot dog restaurant but doesn’t know anything about
business. He needs help determining who his competition is, how he should craft his
strategy to compete and how he’ll implement his strategy to achieve a competitive
advantage. He’s hired you to help him get started. As a result, you will probably use
which of the following?
A) afi strategy framework
B) red queen effect
C) competitive benchmarking
D) stakeholder impact analysis
Ans>>A)
the afi (analyze, formulate, implement) strategy framework is designed to help
businesses identify competitors, craft strategies, and implement them to achieve
competitive advantage. It provides a structured approach for beginners like juan to
understand the competitive landscape and build a sustainable plan. The other options are
narrower concepts: the red queen effect refers to constant competition, benchmarking
compares performance, and stakeholder analysis focuses on stakeholder needs rather than
overall strategy.
2) roberta is interested in the concept of strategy and decides to create her own. As a
result, roberta says that her strategy is to focus on competitive benchmarking to achieve
competitive advantage. Which is the best evaluation of roberta’s statement?
A) roberta’s strategy is clear, but she should provide more detail.
B) roberta’s strategy reveals a clear strategic position and tradeoff, so she should proceed.
, C) roberta should reevaluate her statement because it fails to mention more than one
strategy.
D) roberta should reevaluate her statement because it fails to meet the principles of what
a strategy should be.
Ans>>D)
a true strategy must define a clear position, include trade-offs, and provide a roadmap for
achieving competitive advantage. Simply stating "competitive benchmarking" is not a
strategy—it’s a tool. Roberta’s statement lacks the essential elements of a strategy, such
as differentiation, long-term goals, and implementation plans.
3) tony’s pizza shop is able to net $10,000 a week; this makes the shop profitable. Its
number one competitor, leo’s pies, is also profitable, netting $12,000 a week. Lil
anthony’s pizza palace nets $13,000 a week. Since tony’s pizza shop is profitable, we can
conclude that it has a competitive advantage in its industry.
A) true—competitive advantage is achieved through profitability alone.
B) true—competitive advantage is achieved since tony has a positive net income.
C) false—competitive advantage is only achieved by generating above average returns,
relative to competition.
D) false—tony more than likely has a sustained competitive advantage since he’s been in
business longer.
Ans>>C)
profitability alone does not equal competitive advantage. Competitive advantage requires
outperforming rivals consistently. Since tony’s pizza shop earns less than its competitors,
it is profitable but does not have a competitive advantage. Competitive advantage is
measured relative to industry peers, not just by being profitable.
4) bill’s auto & airplane repair shop is able to generate a positive net income of $10,000 a
week, which is about the same as the income of a close competitor. As a result, we can
conclude that the two businesses also have a competitive parity in the industry.
