TESTBANKFOR
STRATEGICMANAGEMENT6THEDITION
ROTHAERMELFRANK
ISBN978-1266191862
,Chapter 1-12 AnswersareattheEndofEachChapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitive ad
vantage without regardJto theJexternal environment.
⊚ true
⊚ false
2) TheJfollowing statement by the chief executive of MegaFilms movie studio should not be us
ed as a strategy: “WeJwill produceJthe greatestJfilms of the 21st century.”
⊚ true
⊚ false
3) TheJthree tasks of the AFI strategy framework areJto Assemble a prototype,JFindJa buyer, and Inc
orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysisJstage of the AFI frameworkJshouldJinclude “Wh
at effects do forces in the external environment haveJon the firm’s potential to gain and sustainJ
a competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important thatJthe firm sticks to itJnoJ
matter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered internal sta
keholders.
⊚ true
⊚ false
7) A firm isJrequired by society and its shareholders to meet its ethical and philanthropic res
ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysisJprovidesJadecision tool that helps strategic leaders recognizeJthe ne
eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants toJopen his own hot dogJrestaurant but doesn’t know anything about business. He ne
eds help determiningJwho his competitionJis, how he should craft his strategy to compete and h
ow he’ll implement his strategy to achieve a competitiveJadvantage. He’s hired you toJhelp him
get started. As a result, you will probably use which of the following?
A) AFI strategy framework
B) Red Queen effect
C) competitiveJbenchmarking
D) Stakeholder Impact analysis
, 10) Roberta/is/interested/in/the/concept/of/strategy/andJdecides/to/createJher/own./As/a/result,/Ro/be
rta/saysJthat/her/strategy/is/to/focus/on/competitiveJbenchmarking/to/achieve/competitive/adv
antage./Which/isJthe/best/evaluation/of/Roberta’s/statement?
A) Roberta’s/strategy/is/clear,/but/she/should/provideJmore/detail.
B) Roberta’s/strategy/reveals/a/clear/strategic/positionJandJtradeoff,/so/she/shouldJpr/o
ceed.
C) Roberta/should/reevaluate/her/statement/becauseJit/fails/to/mention/moreJthan/oneJstr/a
tegy.
D) Roberta/shouldJreevaluateJher/statement/because/it/fails/to/meetJthe/principles/of/what/aJs/tr
ategy/shouldJbe.
11) Tony’s/PizzaJShop/isJable/to/netJ$10,000/a/week;/thisJmakes/the/shopJprofitable./Its/number/on/e/
competitor,/Leo’s/Pies,/is/also/profitable,/nettingJ$12,000Ja/week./Lil/Anthony’s/Pizza/Palac/e/n
ets/$13,000Ja/week./Since/Tony’s/PizzaJShop/is/profitable,/weJcan/concludeJthatJit/has/a/co/mpe
titive/advantage/in/itsJindustry.
A) True—competitive/advantage/is/achievedJthrough/profitability/alone.
B) True—competitive/advantageJis/achieved/sinceJTony/has/aJpositive/net/income.
C) False—
competitive/advantageis/only/achieved/by/generating/above/averageJreturns,/relative/t/
o/competition.
D) False—
Tony/more/than/likely/hasJaJsustained/competitive/advantage/sinceJhe’s/beenJin/busines/s/
longer.
12) Bill’sJAuto/&/Airplane/Repair/shop/isJable/to/generateJa/positive/netJincomeJof/$10,000/a/we/e
k,/which/isJabout/the/sameJas/the/income/of/a/close/competitor./As/a/result,/we/can/conclud/e/th
at/the/two/businessesJalso/haveJa/competitive/parity/inJthe/industry.
A) Correct—competitive/advantageJis/achieved/through/profitability/alone.
B) Correct—
competitive/advantage/is/achieved/since/Bill’s/AutoJ&/Airplane/Repair/shopJhas/ a/positi/v
e/net/income.
C) Correct—competitive/parity/is/aJperformance/of/two/or/more/firms/at/theJsame/level.
D) Incorrect—
Bill’s/AutoJ&/Airplane/Repair/shop/more/than/likely/has/a/sustained/competitive/a/d
vantage/because/the/business/isJdiversified.
STRATEGICMANAGEMENT6THEDITION
ROTHAERMELFRANK
ISBN978-1266191862
,Chapter 1-12 AnswersareattheEndofEachChapter
Chapter 1
Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitive ad
vantage without regardJto theJexternal environment.
⊚ true
⊚ false
2) TheJfollowing statement by the chief executive of MegaFilms movie studio should not be us
ed as a strategy: “WeJwill produceJthe greatestJfilms of the 21st century.”
⊚ true
⊚ false
3) TheJthree tasks of the AFI strategy framework areJto Assemble a prototype,JFindJa buyer, and Inc
orporate feedback.
⊚ true
⊚ false
4) Questions asked during the strategy analysisJstage of the AFI frameworkJshouldJinclude “Wh
at effects do forces in the external environment haveJon the firm’s potential to gain and sustainJ
a competitive advantage?”
⊚ true
⊚ false
,5) Once a strategy has been formulated and implemented, it is important thatJthe firm sticks to itJnoJ
matter what happens.
⊚ true
⊚ false
6) Because they are a crucial component of a firm’s success, customers are considered internal sta
keholders.
⊚ true
⊚ false
7) A firm isJrequired by society and its shareholders to meet its ethical and philanthropic res
ponsibilities.
⊚ true
⊚ false
8) Stakeholder impact analysisJprovidesJadecision tool that helps strategic leaders recognizeJthe ne
eds of different stakeholders.
⊚ true
⊚ false
9) Juan wants toJopen his own hot dogJrestaurant but doesn’t know anything about business. He ne
eds help determiningJwho his competitionJis, how he should craft his strategy to compete and h
ow he’ll implement his strategy to achieve a competitiveJadvantage. He’s hired you toJhelp him
get started. As a result, you will probably use which of the following?
A) AFI strategy framework
B) Red Queen effect
C) competitiveJbenchmarking
D) Stakeholder Impact analysis
, 10) Roberta/is/interested/in/the/concept/of/strategy/andJdecides/to/createJher/own./As/a/result,/Ro/be
rta/saysJthat/her/strategy/is/to/focus/on/competitiveJbenchmarking/to/achieve/competitive/adv
antage./Which/isJthe/best/evaluation/of/Roberta’s/statement?
A) Roberta’s/strategy/is/clear,/but/she/should/provideJmore/detail.
B) Roberta’s/strategy/reveals/a/clear/strategic/positionJandJtradeoff,/so/she/shouldJpr/o
ceed.
C) Roberta/should/reevaluate/her/statement/becauseJit/fails/to/mention/moreJthan/oneJstr/a
tegy.
D) Roberta/shouldJreevaluateJher/statement/because/it/fails/to/meetJthe/principles/of/what/aJs/tr
ategy/shouldJbe.
11) Tony’s/PizzaJShop/isJable/to/netJ$10,000/a/week;/thisJmakes/the/shopJprofitable./Its/number/on/e/
competitor,/Leo’s/Pies,/is/also/profitable,/nettingJ$12,000Ja/week./Lil/Anthony’s/Pizza/Palac/e/n
ets/$13,000Ja/week./Since/Tony’s/PizzaJShop/is/profitable,/weJcan/concludeJthatJit/has/a/co/mpe
titive/advantage/in/itsJindustry.
A) True—competitive/advantage/is/achievedJthrough/profitability/alone.
B) True—competitive/advantageJis/achieved/sinceJTony/has/aJpositive/net/income.
C) False—
competitive/advantageis/only/achieved/by/generating/above/averageJreturns,/relative/t/
o/competition.
D) False—
Tony/more/than/likely/hasJaJsustained/competitive/advantage/sinceJhe’s/beenJin/busines/s/
longer.
12) Bill’sJAuto/&/Airplane/Repair/shop/isJable/to/generateJa/positive/netJincomeJof/$10,000/a/we/e
k,/which/isJabout/the/sameJas/the/income/of/a/close/competitor./As/a/result,/we/can/conclud/e/th
at/the/two/businessesJalso/haveJa/competitive/parity/inJthe/industry.
A) Correct—competitive/advantageJis/achieved/through/profitability/alone.
B) Correct—
competitive/advantage/is/achieved/since/Bill’s/AutoJ&/Airplane/Repair/shopJhas/ a/positi/v
e/net/income.
C) Correct—competitive/parity/is/aJperformance/of/two/or/more/firms/at/theJsame/level.
D) Incorrect—
Bill’s/AutoJ&/Airplane/Repair/shop/more/than/likely/has/a/sustained/competitive/a/d
vantage/because/the/business/isJdiversified.
