WPC 480 (FINAL) Questions With Complete
Solutions
Why are theories of how to achieve a competitive advantage not about sufficient causes, but only
necessary causes? The causes of firm performance are not generalizable to all contexts.
Firms are made more capable of achieving a competitive advantage by having strong competitors
so they must adapt and become stronger in the market. False
Accounting Value Based on historical data
Shareholder Value Based on predictions on the future
Economic Value Based on predictions of the future
Balanced Scorecard Based mostly on perceptions that can change quickly
Research into the causes of high performance in firms ought to include studying firms that have
very low performance. True
,WPC 480 (FINAL) Questions With Complete
Solutions
It is difficult to learn much about how to succeed at strategy when asking people to explain their
successes after they have become successful. True
In the long run,the major ways of evaluating firm performance will tend to be correlated with
each other. So this suggests that for a strategic analyst, it doesn't matter much what data on firm
performance is chosen. False
The higher proportion of assets that are tangible, the more useful accounting profit is as a
measure of firm performance for a strategic analyst. True
PESTEL Political
Economic
Sociocultural
Technological
Ecological
Legal
Political Non-market strategies
, WPC 480 (FINAL) Questions With Complete
Solutions
Economic Macro-economic conditions of a country or region
Sociocultural Cultures, norms, and value
Technological Application of new knowledge
Ecological Natural environment
Legal Governing laws, mandates, regulations
What is the primary value to a strategic analyst of doing a PESTEL analysis? Identifies
external conditions that can have an effect on competitiveness.
What is the most important information a strategic analyst can obtain by doing an industry
structure analysis? Who gets the profits produced by industry members.
Solutions
Why are theories of how to achieve a competitive advantage not about sufficient causes, but only
necessary causes? The causes of firm performance are not generalizable to all contexts.
Firms are made more capable of achieving a competitive advantage by having strong competitors
so they must adapt and become stronger in the market. False
Accounting Value Based on historical data
Shareholder Value Based on predictions on the future
Economic Value Based on predictions of the future
Balanced Scorecard Based mostly on perceptions that can change quickly
Research into the causes of high performance in firms ought to include studying firms that have
very low performance. True
,WPC 480 (FINAL) Questions With Complete
Solutions
It is difficult to learn much about how to succeed at strategy when asking people to explain their
successes after they have become successful. True
In the long run,the major ways of evaluating firm performance will tend to be correlated with
each other. So this suggests that for a strategic analyst, it doesn't matter much what data on firm
performance is chosen. False
The higher proportion of assets that are tangible, the more useful accounting profit is as a
measure of firm performance for a strategic analyst. True
PESTEL Political
Economic
Sociocultural
Technological
Ecological
Legal
Political Non-market strategies
, WPC 480 (FINAL) Questions With Complete
Solutions
Economic Macro-economic conditions of a country or region
Sociocultural Cultures, norms, and value
Technological Application of new knowledge
Ecological Natural environment
Legal Governing laws, mandates, regulations
What is the primary value to a strategic analyst of doing a PESTEL analysis? Identifies
external conditions that can have an effect on competitiveness.
What is the most important information a strategic analyst can obtain by doing an industry
structure analysis? Who gets the profits produced by industry members.
