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Strategic Management 6th Edition Rothaermel Frank
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ISBN 9781265954574
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Chapter 1-12 Answers are at the End of Each Chapter
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Chapter 1 ss
Student name: ss ss
1) A ssgood ssstrategy ssallows ssa ssfirm ssto ssachieve sssuperior ssperformance ssand
sustainable sscompetitiveadvantage sswithout ssregard ssto ssthe ssexternal
ss b
environment.
ss
⊚ true
⊚ false
2) The s s following s s statement s s by s s the s s chief s s executive s s of s s MegaFilms s s movie s s studio s s should s s not
beused ssas s s a s s strategy: s s “We s s will s s produce s s the s s greatest s s films s s of s s the ss21st s s century.”
⊚ true
⊚ false
3) The ssthree sstasks ssof ssthe ssAFI ssstrategy ssframework ssare ssto ssAssemble ssa ssprototype, ssFind ssa
ss buyer, ssand Incorporate ssfeedback.
b
⊚ true
⊚ false
4) Questions ssasked ssduring ssthe ssstrategy ssanalysis ssstage ssof ssthe ssAFI ssframework ssshould
ssinclude ss“What sseffects ssdo ssforces ssin ssthe ssexternal ssenvironment sshave sson ssthe ssfirm’s
sspotential ssto ssgain ssand sustain ssa sscompetitive ssadvantage?”
bb
⊚ s s s s s s true
⊚ s s s s s s false
,5) Once ssa ssstrategy sshas ssbeen ssformulated ssand ssimplemented, ssit ssis ssimportant ssthat ssthe ssfirm
ss sticks ssto ssit no ssmatter sswhat sshappens.
bb
⊚ true
⊚ false
6) Because ssthey ssare ssa sscrucial sscomponent ssof ssa ssfirm’s sssuccess, sscustomers ssare
ss considered ssinternalstakeholders.
⊚ true
⊚ false
7) A ssfirm ssis ssrequired ssby sssociety ssand ssits ssshareholders ssto ssmeet ssits ssethical
ss and ssphilanthropicresponsibilities.
b
⊚ true
⊚ false
8) Stakeholder ssimpact ssanalysis ssprovides ssa ssdecision sstool ssthat sshelps ssstrategic ssleaders
recognize sstheneeds ssof ssdifferent ssstakeholders.
ss
⊚ true
⊚ false
9) Juan sswants ssto ssopen sshis ssown sshot ssdog ssrestaurant ssbut ssdoesn’t ssknow ssanything ssabout
ssbusiness. ssHeneeds sshelp ssdetermining sswho sshis sscompetition ssis, sshow sshe ssshould sscraft sshis
ssstrategy ssto sscompete ssand sshow sshe’ll ssimplement sshis ssstrategy ssto ssachieve ssa sscompetitive
ssadvantage. ssHe’s sshired ssyou ssto sshelp sshim ssget ssstarted. ssAs ssa ssresult, ss you sswill ssprobably
ssuse sswhich ssof ssthe ssfollowing?
A) AFI ssstrategy ssframework
B) Red ssQueen sseffect
C) competitive ssbenchmarking
D) Stakeholder ssImpact ssanalysis
, 10) Roberta ssis ssinterested ssin ssthe ssconcept ssof ssstrategy ssand ssdecides ssto sscreate ssher ssown.
ssAs ssa ssresult,Roberta sssays ssthat ssher ssstrategy ssis ssto ssfocus sson sscompetitive
ssbenchmarking ssto ssachieve sscompetitive ssadvantage. s s Which ssis ssthe ssbest ssevaluation
ssof ssRoberta’s ssstatement?
A) Roberta’s s s strategy ssis s s clear, s s but s s she s s should s s provide s s more ssdetail.
B) Roberta’s ssstrategy ssreveals ssa ssclear ssstrategic ssposition ssand sstradeoff, ssso
ssshe ssshould proceed.
b
C) Roberta ssshould ssreevaluate ssher ssstatement ssbecause ssit ssfails ssto ssmention ssmore
ssthan ssonestrategy.
D) Roberta ssshould ssreevaluate ssher ssstatement ssbecause ssit ssfails ssto ssmeet ssthe
ssprinciples ssof sswhat a ssstrategy ssshould ssbe.
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11) Tony’s ssPizza ssShop ssis ssable ssto ssnet ss$10,000 ssa ssweek; ssthis ssmakes ssthe ssshop ssprofitable. ssIts
ssnumberone sscompetitor, ssLeo’s ssPies, ssis ssalso ssprofitable, ssnetting ss$12,000 ssa ssweek. ssLil
ssAnthony’s ssPizza ssPalace ssnets ss$13,000 ssa ssweek. ssSince ssTony’s ssPizza ssShop ssis
ssprofitable, sswe sscan ssconclude ssthat ssit sshas ssa sscompetitive ssadvantage ssin ssits ssindustry.
A) True—competitive ssadvantage ssis ss achieved s s through s s profitability ssalone.
B) True—competitive s s advantage ssis s s achieved s s since s s Tony sshas s s a ss positive s s net s s income.
C) False—competitive ssadvantage ssis ssonly ssachieved ssby ssgenerating ssabove
ssaverage ssreturns,relative ssto sscompetition.
D) False—Tony ssmore ssthan sslikely sshas ssa sssustained sscompetitive ssadvantage sssince
sshe’s ssbeen in ssbusiness sslonger.
bb
12) Bill’s s s Auto ss & ssAirplane ss Repair s s shop s s is s s able ss to s s generate s s a sspositive ss net s s income s s of
$10,000 ssaweek, sswhich ssis ssabout ssthe sssame ssas ssthe ssincome ssof ssa ssclose sscompetitor. ssAs
ssa ssresult, sswe sscan ssconclude ssthat ssthe sstwo ssbusinesses ssalso sshave ssa sscompetitive ssparity
ssin ssthe ssindustry.
A) Correct—competitive ssadvantage ssis s s achieved s s through s s profitability ssalone.
B) Correct—competitive ssadvantage ssis ssachieved sssince ssBill’s ssAuto ss& ssAirplane
ssRepair ssshop has ssa sspositive ssnet ssincome.
bb
C) Correct—competitive s s parity ssis s s a s s performance s s of ss two s s or ssmore ssfirms s s at ss the sssame
ss level.
D) Incorrect—Bill’s ssAuto ss& ssAirplane ssRepair ssshop ssmore ssthan sslikely
sshas ssa sssustained competitive ssadvantage ssbecause ssthe ssbusiness ssis
b
ssdiversified.
Strategic Management 6th Edition Rothaermel Frank
ss ss ss ss ss
ISBN 9781265954574
ss
Chapter 1-12 Answers are at the End of Each Chapter
ss bb bb bb bb bb bb bb
Chapter 1 ss
Student name: ss ss
1) A ssgood ssstrategy ssallows ssa ssfirm ssto ssachieve sssuperior ssperformance ssand
sustainable sscompetitiveadvantage sswithout ssregard ssto ssthe ssexternal
ss b
environment.
ss
⊚ true
⊚ false
2) The s s following s s statement s s by s s the s s chief s s executive s s of s s MegaFilms s s movie s s studio s s should s s not
beused ssas s s a s s strategy: s s “We s s will s s produce s s the s s greatest s s films s s of s s the ss21st s s century.”
⊚ true
⊚ false
3) The ssthree sstasks ssof ssthe ssAFI ssstrategy ssframework ssare ssto ssAssemble ssa ssprototype, ssFind ssa
ss buyer, ssand Incorporate ssfeedback.
b
⊚ true
⊚ false
4) Questions ssasked ssduring ssthe ssstrategy ssanalysis ssstage ssof ssthe ssAFI ssframework ssshould
ssinclude ss“What sseffects ssdo ssforces ssin ssthe ssexternal ssenvironment sshave sson ssthe ssfirm’s
sspotential ssto ssgain ssand sustain ssa sscompetitive ssadvantage?”
bb
⊚ s s s s s s true
⊚ s s s s s s false
,5) Once ssa ssstrategy sshas ssbeen ssformulated ssand ssimplemented, ssit ssis ssimportant ssthat ssthe ssfirm
ss sticks ssto ssit no ssmatter sswhat sshappens.
bb
⊚ true
⊚ false
6) Because ssthey ssare ssa sscrucial sscomponent ssof ssa ssfirm’s sssuccess, sscustomers ssare
ss considered ssinternalstakeholders.
⊚ true
⊚ false
7) A ssfirm ssis ssrequired ssby sssociety ssand ssits ssshareholders ssto ssmeet ssits ssethical
ss and ssphilanthropicresponsibilities.
b
⊚ true
⊚ false
8) Stakeholder ssimpact ssanalysis ssprovides ssa ssdecision sstool ssthat sshelps ssstrategic ssleaders
recognize sstheneeds ssof ssdifferent ssstakeholders.
ss
⊚ true
⊚ false
9) Juan sswants ssto ssopen sshis ssown sshot ssdog ssrestaurant ssbut ssdoesn’t ssknow ssanything ssabout
ssbusiness. ssHeneeds sshelp ssdetermining sswho sshis sscompetition ssis, sshow sshe ssshould sscraft sshis
ssstrategy ssto sscompete ssand sshow sshe’ll ssimplement sshis ssstrategy ssto ssachieve ssa sscompetitive
ssadvantage. ssHe’s sshired ssyou ssto sshelp sshim ssget ssstarted. ssAs ssa ssresult, ss you sswill ssprobably
ssuse sswhich ssof ssthe ssfollowing?
A) AFI ssstrategy ssframework
B) Red ssQueen sseffect
C) competitive ssbenchmarking
D) Stakeholder ssImpact ssanalysis
, 10) Roberta ssis ssinterested ssin ssthe ssconcept ssof ssstrategy ssand ssdecides ssto sscreate ssher ssown.
ssAs ssa ssresult,Roberta sssays ssthat ssher ssstrategy ssis ssto ssfocus sson sscompetitive
ssbenchmarking ssto ssachieve sscompetitive ssadvantage. s s Which ssis ssthe ssbest ssevaluation
ssof ssRoberta’s ssstatement?
A) Roberta’s s s strategy ssis s s clear, s s but s s she s s should s s provide s s more ssdetail.
B) Roberta’s ssstrategy ssreveals ssa ssclear ssstrategic ssposition ssand sstradeoff, ssso
ssshe ssshould proceed.
b
C) Roberta ssshould ssreevaluate ssher ssstatement ssbecause ssit ssfails ssto ssmention ssmore
ssthan ssonestrategy.
D) Roberta ssshould ssreevaluate ssher ssstatement ssbecause ssit ssfails ssto ssmeet ssthe
ssprinciples ssof sswhat a ssstrategy ssshould ssbe.
bb
11) Tony’s ssPizza ssShop ssis ssable ssto ssnet ss$10,000 ssa ssweek; ssthis ssmakes ssthe ssshop ssprofitable. ssIts
ssnumberone sscompetitor, ssLeo’s ssPies, ssis ssalso ssprofitable, ssnetting ss$12,000 ssa ssweek. ssLil
ssAnthony’s ssPizza ssPalace ssnets ss$13,000 ssa ssweek. ssSince ssTony’s ssPizza ssShop ssis
ssprofitable, sswe sscan ssconclude ssthat ssit sshas ssa sscompetitive ssadvantage ssin ssits ssindustry.
A) True—competitive ssadvantage ssis ss achieved s s through s s profitability ssalone.
B) True—competitive s s advantage ssis s s achieved s s since s s Tony sshas s s a ss positive s s net s s income.
C) False—competitive ssadvantage ssis ssonly ssachieved ssby ssgenerating ssabove
ssaverage ssreturns,relative ssto sscompetition.
D) False—Tony ssmore ssthan sslikely sshas ssa sssustained sscompetitive ssadvantage sssince
sshe’s ssbeen in ssbusiness sslonger.
bb
12) Bill’s s s Auto ss & ssAirplane ss Repair s s shop s s is s s able ss to s s generate s s a sspositive ss net s s income s s of
$10,000 ssaweek, sswhich ssis ssabout ssthe sssame ssas ssthe ssincome ssof ssa ssclose sscompetitor. ssAs
ssa ssresult, sswe sscan ssconclude ssthat ssthe sstwo ssbusinesses ssalso sshave ssa sscompetitive ssparity
ssin ssthe ssindustry.
A) Correct—competitive ssadvantage ssis s s achieved s s through s s profitability ssalone.
B) Correct—competitive ssadvantage ssis ssachieved sssince ssBill’s ssAuto ss& ssAirplane
ssRepair ssshop has ssa sspositive ssnet ssincome.
bb
C) Correct—competitive s s parity ssis s s a s s performance s s of ss two s s or ssmore ssfirms s s at ss the sssame
ss level.
D) Incorrect—Bill’s ssAuto ss& ssAirplane ssRepair ssshop ssmore ssthan sslikely
sshas ssa sssustained competitive ssadvantage ssbecause ssthe ssbusiness ssis
b
ssdiversified.
