WPC 480 Chapter 1 UPDATED ACTUAL
Questions and CORRECT Answers
Which of the following could be a definition of strategic competitiveness? - CORRECT
ANSWER - The ability of a firm to outperform its rivals by forming and executing a
strategy that creates value for its stakeholders
The strategic management process is the: - CORRECT ANSWER - way that businesses
formulate initiatives to create superior value for customers, then implement those initiatives to
out-perform competitors.
Which of the following describes a company that has delivered above-average returns to its
investors? - CORRECT ANSWER - A tool manufacturer that announced it will increase its
dividend payment—the highest dividend amongst all of its industry competitors—for the
upcoming quarter due to market share gains in overseas markets
Hypercompetition describes a competitive landscape in which: - CORRECT ANSWER -
the industry is constantly changing with global competition and innovative competitors.
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product
line that is manufactured only in the company's U.S. plant. That product has experienced a steady
increase in its export sales to Europe over the last three years. The international sales director is
recommending that the company expand manufacturing capabilities at the European plant to
include this product line. Michael and his management team must consider whether to pursue
this strategy. This is: - CORRECT ANSWER - a decision that would benefit from using
the entire strategic management process.
Which of the following is an example of a disruptive technology? - CORRECT
ANSWER - The introduction of Global Positioning System (GPS) technology, which is
used in standalone and handheld navigation tools, smartphone apps, and in-car navigation
systems
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
, Which of the following is an example of a company that did not respond strategically to
technological changes? - CORRECT ANSWER - Kodak revolutionized the automatic
snapshot camera more than 100 years ago, making photography accessible to everyone. When
innovators brought digital cameras to the marketplace, Kodak focused on making it easy for
people to print their photos using this technology.
The industrial organization (I/O) model of above-average returns: - CORRECT
ANSWER - puts emphasis on the external environment, which plays a role in determining
a company's ability to achieve above-average returns.
Which of the following represents a criticism of the industrial organization (I/O) model of above-
average returns? - CORRECT ANSWER - The model assumes that most firms operating in
an industry have similar valuable resources that are mobile across companies, which is not
necessarily true.
Which of the following is an example of the mobility of strategies and resources across firms in
the mobile network industry, one of the assumptions of the industrial organization (I/O) model of
above-average returns? - CORRECT ANSWER - The spread of 4G technology between
Verizon, AT&T, and Sprint makes the high-speed network available to nearly all mobile phone
customers.
A multidivisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to
develop its strategy. Which of the following decisions is consistent with this model? -
CORRECT ANSWER - The company's research into a new railcar guideline that requires
all tanker cars to be replaced or retrofitted over the next five years leads its leaders to start a
business that manufactures tanker cars to capitalize on the new demand.
In the resource-based model of above-average returns, differences in company performance can
be attributed to the: - CORRECT ANSWER - a. unique capabilities and resources of the
company
In the resource-based model of above-average returns, a core competency is something that -
CORRECT ANSWER - gives a company an edge over the competition, something that the
company possesses that its competitors do not have, and something that is too difficult or costly
for competitors to copy or produce an alternative.
Questions and CORRECT Answers
Which of the following could be a definition of strategic competitiveness? - CORRECT
ANSWER - The ability of a firm to outperform its rivals by forming and executing a
strategy that creates value for its stakeholders
The strategic management process is the: - CORRECT ANSWER - way that businesses
formulate initiatives to create superior value for customers, then implement those initiatives to
out-perform competitors.
Which of the following describes a company that has delivered above-average returns to its
investors? - CORRECT ANSWER - A tool manufacturer that announced it will increase its
dividend payment—the highest dividend amongst all of its industry competitors—for the
upcoming quarter due to market share gains in overseas markets
Hypercompetition describes a competitive landscape in which: - CORRECT ANSWER -
the industry is constantly changing with global competition and innovative competitors.
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product
line that is manufactured only in the company's U.S. plant. That product has experienced a steady
increase in its export sales to Europe over the last three years. The international sales director is
recommending that the company expand manufacturing capabilities at the European plant to
include this product line. Michael and his management team must consider whether to pursue
this strategy. This is: - CORRECT ANSWER - a decision that would benefit from using
the entire strategic management process.
Which of the following is an example of a disruptive technology? - CORRECT
ANSWER - The introduction of Global Positioning System (GPS) technology, which is
used in standalone and handheld navigation tools, smartphone apps, and in-car navigation
systems
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
, Which of the following is an example of a company that did not respond strategically to
technological changes? - CORRECT ANSWER - Kodak revolutionized the automatic
snapshot camera more than 100 years ago, making photography accessible to everyone. When
innovators brought digital cameras to the marketplace, Kodak focused on making it easy for
people to print their photos using this technology.
The industrial organization (I/O) model of above-average returns: - CORRECT
ANSWER - puts emphasis on the external environment, which plays a role in determining
a company's ability to achieve above-average returns.
Which of the following represents a criticism of the industrial organization (I/O) model of above-
average returns? - CORRECT ANSWER - The model assumes that most firms operating in
an industry have similar valuable resources that are mobile across companies, which is not
necessarily true.
Which of the following is an example of the mobility of strategies and resources across firms in
the mobile network industry, one of the assumptions of the industrial organization (I/O) model of
above-average returns? - CORRECT ANSWER - The spread of 4G technology between
Verizon, AT&T, and Sprint makes the high-speed network available to nearly all mobile phone
customers.
A multidivisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to
develop its strategy. Which of the following decisions is consistent with this model? -
CORRECT ANSWER - The company's research into a new railcar guideline that requires
all tanker cars to be replaced or retrofitted over the next five years leads its leaders to start a
business that manufactures tanker cars to capitalize on the new demand.
In the resource-based model of above-average returns, differences in company performance can
be attributed to the: - CORRECT ANSWER - a. unique capabilities and resources of the
company
In the resource-based model of above-average returns, a core competency is something that -
CORRECT ANSWER - gives a company an edge over the competition, something that the
company possesses that its competitors do not have, and something that is too difficult or costly
for competitors to copy or produce an alternative.
