,TEST BANK FOR x x
Strategic Management 6th Edition Rothaermel Frank
x x x x x
ISBN 9781265954574
x
Chapter 1-12 Answers are at the End of Each Chapter
x x x x x x x x x
Chapter 1 x
Student name: x
1) A good strategy allows a firm to achieve superior performance and sustainable competitive
x x x x x x x x x x x x
x advantage without regard to the external environment.
x x x x x x
⊚ true x
⊚ false x
2) The following statement by the chief executive of MegaFilms movie studio should not be
x x x x x x x x x x x x x
x used as a strategy: “We will produce the greatest films of the 21st century.”
x x x x x x x x x x x x x
⊚ true x
⊚ false x
3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
x x x x x x x x x x x x x x x x
x Incorporate feedback. x
⊚ true x
⊚ false x
4) Questions asked during the strategy analysis stage of the AFI framework should include
x x x x x x x x x x x x
x “What effects do forces in the external environment have on the firm’s potential to gain and
x x x x x x x x x x x x x x x
x sustain a competitive advantage?”
x x x
⊚ true x
⊚ false x
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
x x x x x x x x x x x x x x x x
x no matter what happens.
x x x
⊚ true x
⊚ false x
6) Because they are a crucial component of a firm’s success, customers are considered internal
x x x x x x x x x x x x x
x stakeholders.
⊚ true x
⊚ false x
7) A firm is required by society and its shareholders to meet its ethical and philanthropic
x x x x x x x x x x x x x x
x responsibilities.
⊚ true x
⊚ false x
8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the
x x x x x x x x x x x x
x needs of different stakeholders.
x x x
⊚ true x
⊚ false x
9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
x x x x x x x x x x x x x x x
x needs help determining who his competition is, how he should craft his strategy to compete
x x x x x x x x x x x x x x
x and how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
x x x x x x x x x x x x x x
x help him get started. As a result, you will probably use which of the following?
x x x x x x x x x x x x x x
A) AFI strategy framework x x
B) Red Queen effect x x
C) competitive benchmarking x
D) Stakeholder Impact analysis x x
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a result,
x x x x x x x x x x x x x x x x
x Roberta says that her strategy is to focus on competitive benchmarking to achieve
x x x x x x x x x x x x
x competitive advantage. Which is the best evaluation of Roberta’s statement?
x x x x x x x x x
A) Roberta’s strategy is clear, but she should provide more detail. x x x x x x x x x
B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should
x x x x x x x x x x x
proceed. x
C) Roberta should reevaluate her statement because it fails to mention more than one
x x x x x x x x x x x x
strategy. x
D) Roberta should reevaluate her statement because it fails to meet the principles of what
x x x x x x x x x x x x x
a strategy should be.
x x x x
11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number
x x x x x x x x x x x x x x x x
x one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza
x x x x x x x x x x x x x
x Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it
x x x x x x x x x x x x x x x
x has a competitive advantage in its industry.
x x x x x x
A) True—competitive advantage is achieved through profitability alone. x x x x x x
B) True—competitive advantage is achieved since Tony has a positive net income. x x x x x x x x x x
C) False—competitive advantage is only achieved by generating above average returns, x x x x x x x x x
relative to competition.
x x x
D) False—Tony more than likely has a sustained competitive advantage since he’s been x x x x x x x x x x x
in business longer.
x x x
12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a
x x x x x x x x x x x x x x x x
x week, which is about the same as the income of a close competitor. As a result, we can
x x x x x x x x x x x x x x x x x
x conclude that the two businesses also have a competitive parity in the industry.
x x x x x x x x x x x x
A) Correct—competitive advantage is achieved through profitability alone. x x x x x x
B) Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop x x x x x x x x x x
has a positive net income.
x x x x x
C) Correct—competitive parity is a performance of two or more firms at the same level. x x x x x x x x x x x x x
D) Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained x x x x x x x x x x x
competitive advantage because the business is diversified.
x x x x x x x
Strategic Management 6th Edition Rothaermel Frank
x x x x x
ISBN 9781265954574
x
Chapter 1-12 Answers are at the End of Each Chapter
x x x x x x x x x
Chapter 1 x
Student name: x
1) A good strategy allows a firm to achieve superior performance and sustainable competitive
x x x x x x x x x x x x
x advantage without regard to the external environment.
x x x x x x
⊚ true x
⊚ false x
2) The following statement by the chief executive of MegaFilms movie studio should not be
x x x x x x x x x x x x x
x used as a strategy: “We will produce the greatest films of the 21st century.”
x x x x x x x x x x x x x
⊚ true x
⊚ false x
3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
x x x x x x x x x x x x x x x x
x Incorporate feedback. x
⊚ true x
⊚ false x
4) Questions asked during the strategy analysis stage of the AFI framework should include
x x x x x x x x x x x x
x “What effects do forces in the external environment have on the firm’s potential to gain and
x x x x x x x x x x x x x x x
x sustain a competitive advantage?”
x x x
⊚ true x
⊚ false x
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
x x x x x x x x x x x x x x x x
x no matter what happens.
x x x
⊚ true x
⊚ false x
6) Because they are a crucial component of a firm’s success, customers are considered internal
x x x x x x x x x x x x x
x stakeholders.
⊚ true x
⊚ false x
7) A firm is required by society and its shareholders to meet its ethical and philanthropic
x x x x x x x x x x x x x x
x responsibilities.
⊚ true x
⊚ false x
8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the
x x x x x x x x x x x x
x needs of different stakeholders.
x x x
⊚ true x
⊚ false x
9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
x x x x x x x x x x x x x x x
x needs help determining who his competition is, how he should craft his strategy to compete
x x x x x x x x x x x x x x
x and how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
x x x x x x x x x x x x x x
x help him get started. As a result, you will probably use which of the following?
x x x x x x x x x x x x x x
A) AFI strategy framework x x
B) Red Queen effect x x
C) competitive benchmarking x
D) Stakeholder Impact analysis x x
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a result,
x x x x x x x x x x x x x x x x
x Roberta says that her strategy is to focus on competitive benchmarking to achieve
x x x x x x x x x x x x
x competitive advantage. Which is the best evaluation of Roberta’s statement?
x x x x x x x x x
A) Roberta’s strategy is clear, but she should provide more detail. x x x x x x x x x
B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should
x x x x x x x x x x x
proceed. x
C) Roberta should reevaluate her statement because it fails to mention more than one
x x x x x x x x x x x x
strategy. x
D) Roberta should reevaluate her statement because it fails to meet the principles of what
x x x x x x x x x x x x x
a strategy should be.
x x x x
11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number
x x x x x x x x x x x x x x x x
x one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza
x x x x x x x x x x x x x
x Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it
x x x x x x x x x x x x x x x
x has a competitive advantage in its industry.
x x x x x x
A) True—competitive advantage is achieved through profitability alone. x x x x x x
B) True—competitive advantage is achieved since Tony has a positive net income. x x x x x x x x x x
C) False—competitive advantage is only achieved by generating above average returns, x x x x x x x x x
relative to competition.
x x x
D) False—Tony more than likely has a sustained competitive advantage since he’s been x x x x x x x x x x x
in business longer.
x x x
12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a
x x x x x x x x x x x x x x x x
x week, which is about the same as the income of a close competitor. As a result, we can
x x x x x x x x x x x x x x x x x
x conclude that the two businesses also have a competitive parity in the industry.
x x x x x x x x x x x x
A) Correct—competitive advantage is achieved through profitability alone. x x x x x x
B) Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop x x x x x x x x x x
has a positive net income.
x x x x x
C) Correct—competitive parity is a performance of two or more firms at the same level. x x x x x x x x x x x x x
D) Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained x x x x x x x x x x x
competitive advantage because the business is diversified.
x x x x x x x
