WPC 480 MIDTERM FULL SOLUTION STUDY
GUIDE
◉ The primary drivers of hypercompetition are __________ and
__________.
a. the emergence of a global economy; rapid technological change
b. increased global competition; decreased tariffs
c. increased availability of capital; increased competition
d. rising global socio-economic instability; increased inflation
Answer: the emergence of a global economy; rapid technological
change
◉ True or False:
The uniqueness of a firm's resources and capabilities is the basis for
a firm's strategy and its ability to earn above-average returns under
the industrial organization (I/O) model.
Answer: False
◉ The Princeton Alliance Church states on its website that "PAC
exists to help you live life to the fullest by knowing God, developing
community and bringing hope." This pronouncement is MOST
precisely a statement of organizational:
a. vision.
,b. structure.
c. culture.
d. values.
Answer: Vision
◉ True or False:
The assumptions of the industrial organization model and the
resource-based model are contradictory. Therefore, organizational
strategists must choose one or the other model as the basis for
developing a strategic plan.
Answer: False
◉ Alibaba is a company in the Internet services industry that has
improved its performance by focusing on its unique abilities in the
area of innovation and service diversification. This improved
performance is best explained by:
a. the resource-based model.
b. hypercompetition.
c. globalization.
d. the industrial organization (I/O) model.
Answer: the resource-based model
◉ The strategic management process is:
, a. a set of activities that will assure a sustainable competitive
advantage and above-average returns for the firm.
b. a decision-making activity concerned with a firm's internal
resources, capabilities, and competencies, independent of the
conditions in its external environment.
c. the full set of commitments, decisions, and actions required for a
firm to achieve strategic competitiveness and earn above-average
returns.
d. a process directed by top management with input from other
stakeholders that seeks to earn above-average returns for investors
through effective use of the organization's resources.
Answer: the full set of commitments, decisions, and actions required
for a firm to achieve strategic competitiveness and earn above-
average returns.
◉ True or False:
The local government with whom a firm interacts, the people who
buy its products, and the contractors who supply raw materials are
all part of a firm's capital market stakeholders.
Answer: False
◉ Sandy, a line manager on the production floor at Oakway
Industries, is an entry-level manager. Sandy has a strong
commitment to the Oakway's vision and mission. She has good
relationships with workers on her line as well as with employees
throughout Oakway. Sandy is able to make decisions on the fly to
GUIDE
◉ The primary drivers of hypercompetition are __________ and
__________.
a. the emergence of a global economy; rapid technological change
b. increased global competition; decreased tariffs
c. increased availability of capital; increased competition
d. rising global socio-economic instability; increased inflation
Answer: the emergence of a global economy; rapid technological
change
◉ True or False:
The uniqueness of a firm's resources and capabilities is the basis for
a firm's strategy and its ability to earn above-average returns under
the industrial organization (I/O) model.
Answer: False
◉ The Princeton Alliance Church states on its website that "PAC
exists to help you live life to the fullest by knowing God, developing
community and bringing hope." This pronouncement is MOST
precisely a statement of organizational:
a. vision.
,b. structure.
c. culture.
d. values.
Answer: Vision
◉ True or False:
The assumptions of the industrial organization model and the
resource-based model are contradictory. Therefore, organizational
strategists must choose one or the other model as the basis for
developing a strategic plan.
Answer: False
◉ Alibaba is a company in the Internet services industry that has
improved its performance by focusing on its unique abilities in the
area of innovation and service diversification. This improved
performance is best explained by:
a. the resource-based model.
b. hypercompetition.
c. globalization.
d. the industrial organization (I/O) model.
Answer: the resource-based model
◉ The strategic management process is:
, a. a set of activities that will assure a sustainable competitive
advantage and above-average returns for the firm.
b. a decision-making activity concerned with a firm's internal
resources, capabilities, and competencies, independent of the
conditions in its external environment.
c. the full set of commitments, decisions, and actions required for a
firm to achieve strategic competitiveness and earn above-average
returns.
d. a process directed by top management with input from other
stakeholders that seeks to earn above-average returns for investors
through effective use of the organization's resources.
Answer: the full set of commitments, decisions, and actions required
for a firm to achieve strategic competitiveness and earn above-
average returns.
◉ True or False:
The local government with whom a firm interacts, the people who
buy its products, and the contractors who supply raw materials are
all part of a firm's capital market stakeholders.
Answer: False
◉ Sandy, a line manager on the production floor at Oakway
Industries, is an entry-level manager. Sandy has a strong
commitment to the Oakway's vision and mission. She has good
relationships with workers on her line as well as with employees
throughout Oakway. Sandy is able to make decisions on the fly to
