TEST BANK STRATEGIC MANAGEMENT CONCEPTS
COMPETITIVENESS AND GLOBALIZATION 12
EDITION HITT QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A 2026
|INSTANT DOWNLOAD PDF
1. What is the primary goal of strategic management?
A. Maximizing short-term profits
B. Achieving competitive advantage
C. Reducing employee turnover only
D. Increasing product variety only
Rationale: Strategic management focuses on long-term success
through competitive positioning.
Correct Answer: B
2. Which of the following best defines competitive advantage?
A. Lower production costs only
B. A firm performing similarly to competitors
C. Attributes that allow a firm to outperform rivals
D. Government protection from competition
Rationale: Competitive advantage comes from unique value
creation.
Correct Answer: C
,3. What is globalization in strategic management?
A. Limiting operations to domestic markets
B. Expanding business activities across national borders
C. Reducing international trade
D. Focusing only on local suppliers
Rationale: Globalization refers to cross-border expansion of
business activities.
Correct Answer: B
4. Which level of strategy focuses on a single business unit?
A. Corporate level
B. Functional level
C. Business level
D. Global level
Rationale: Business-level strategy deals with how to compete in
a single industry.
Correct Answer: C
5. What does external analysis primarily examine?
A. Internal employee skills
B. Organizational structure
C. Industry and macro-environment factors
D. Financial accounting systems
,Rationale: External analysis evaluates opportunities and threats
in the environment.
Correct Answer: C
6. Which framework is commonly used for industry analysis?
A. SWOT analysis
B. Porter’s Five Forces
C. Balanced Scorecard
D. Six Sigma
Rationale: Porter’s Five Forces evaluates industry
competitiveness.
Correct Answer: B
7. What does SWOT analysis stand for?
A. Strategy, Weakness, Operations, Trends
B. Strengths, Weaknesses, Opportunities, Threats
C. Systems, Workflows, Organization, Tactics
D. Sales, Work, Output, Targets
Rationale: SWOT identifies internal strengths/weaknesses and
external opportunities/threats.
Correct Answer: B
8. Which is an example of a resource in the resource-based
view (RBV)?
, A. Government regulations
B. Firm reputation
C. Competitor pricing
D. Market demand
Rationale: RBV focuses on internal assets like reputation and
capabilities.
Correct Answer: B
9. What makes a resource a source of sustained competitive
advantage?
A. It is easily copied
B. It is common in the industry
C. It is valuable, rare, inimitable, and non-substitutable
D. It is externally controlled
Rationale: VRIN criteria define strategic resources.
Correct Answer: C
10. Corporate-level strategy primarily deals with:
A. Daily operations
B. How to compete in one market
C. Which industries or markets to enter
D. Employee motivation techniques
COMPETITIVENESS AND GLOBALIZATION 12
EDITION HITT QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A 2026
|INSTANT DOWNLOAD PDF
1. What is the primary goal of strategic management?
A. Maximizing short-term profits
B. Achieving competitive advantage
C. Reducing employee turnover only
D. Increasing product variety only
Rationale: Strategic management focuses on long-term success
through competitive positioning.
Correct Answer: B
2. Which of the following best defines competitive advantage?
A. Lower production costs only
B. A firm performing similarly to competitors
C. Attributes that allow a firm to outperform rivals
D. Government protection from competition
Rationale: Competitive advantage comes from unique value
creation.
Correct Answer: C
,3. What is globalization in strategic management?
A. Limiting operations to domestic markets
B. Expanding business activities across national borders
C. Reducing international trade
D. Focusing only on local suppliers
Rationale: Globalization refers to cross-border expansion of
business activities.
Correct Answer: B
4. Which level of strategy focuses on a single business unit?
A. Corporate level
B. Functional level
C. Business level
D. Global level
Rationale: Business-level strategy deals with how to compete in
a single industry.
Correct Answer: C
5. What does external analysis primarily examine?
A. Internal employee skills
B. Organizational structure
C. Industry and macro-environment factors
D. Financial accounting systems
,Rationale: External analysis evaluates opportunities and threats
in the environment.
Correct Answer: C
6. Which framework is commonly used for industry analysis?
A. SWOT analysis
B. Porter’s Five Forces
C. Balanced Scorecard
D. Six Sigma
Rationale: Porter’s Five Forces evaluates industry
competitiveness.
Correct Answer: B
7. What does SWOT analysis stand for?
A. Strategy, Weakness, Operations, Trends
B. Strengths, Weaknesses, Opportunities, Threats
C. Systems, Workflows, Organization, Tactics
D. Sales, Work, Output, Targets
Rationale: SWOT identifies internal strengths/weaknesses and
external opportunities/threats.
Correct Answer: B
8. Which is an example of a resource in the resource-based
view (RBV)?
, A. Government regulations
B. Firm reputation
C. Competitor pricing
D. Market demand
Rationale: RBV focuses on internal assets like reputation and
capabilities.
Correct Answer: B
9. What makes a resource a source of sustained competitive
advantage?
A. It is easily copied
B. It is common in the industry
C. It is valuable, rare, inimitable, and non-substitutable
D. It is externally controlled
Rationale: VRIN criteria define strategic resources.
Correct Answer: C
10. Corporate-level strategy primarily deals with:
A. Daily operations
B. How to compete in one market
C. Which industries or markets to enter
D. Employee motivation techniques
