SEVI 3013 McGraw Hill Chapter 1
Smartbook UPDATED Exam Questions and
CORRECT Answers
Which of the following elements comprise strategic management? - CORRECT ANSWER --
analysis
-implementation
-formulation
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many
competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that
uses locally sourced, organic ingredients. These ideas are Burger Bomb's
___________________. - CORRECT ANSWER - strategy
When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved _______________. - CORRECT
ANSWER - a competitive advantage
A competitive advantage ________. - CORRECT ANSWER - is assessed relative to other
competitors in the industry
Sustainable competitive advantage exists when a firm ____________. - CORRECT
ANSWER - maintains superior performance relative to its industry over a long period of time
What is the overall purpose of strategic management? - CORRECT ANSWER - Gain
competitive advantage
A(n) ___________ occurs when a firm performs below the industry average or is outperformed
by its competitors. - CORRECT ANSWER - competitive disadvantage
, What is strategy? - CORRECT ANSWER - the set of actions a firm takes to achieve a
competitive advantage
Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has -
CORRECT ANSWER - competitive parity
What is the overall purpose of a firm's strategy? - CORRECT ANSWER - Perform better than
other companies in the same industry.
The stakeholders of a firm are _________________. - CORRECT ANSWER - individuals or
groups that can affect and are affected by the actions of the firm
In order to determine if Home Depot has a competitive advantage, we must compare Home
Depot's performance to - CORRECT ANSWER - the performance of other firms in its
industry
Who among the following are considered internal stakeholders? - CORRECT ANSWER --
employees
-stockholders
-board members
A competitive advantage that lasts for a long period of time is said to be _________________. -
CORRECT ANSWER - sustainable
Effective stakeholder management _____________. - CORRECT ANSWER - helps a firm
build a strong public reputation
If a firm has a 10% return on invested capital while the industry average return on invested
capital is 18%, the firm has a(n) ______________. - CORRECT ANSWER - competitive
disadvantage
Smartbook UPDATED Exam Questions and
CORRECT Answers
Which of the following elements comprise strategic management? - CORRECT ANSWER --
analysis
-implementation
-formulation
Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many
competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that
uses locally sourced, organic ingredients. These ideas are Burger Bomb's
___________________. - CORRECT ANSWER - strategy
When a firm implements a strategy that leads to superior performance relative to other
companies in the same industry, it is said to have achieved _______________. - CORRECT
ANSWER - a competitive advantage
A competitive advantage ________. - CORRECT ANSWER - is assessed relative to other
competitors in the industry
Sustainable competitive advantage exists when a firm ____________. - CORRECT
ANSWER - maintains superior performance relative to its industry over a long period of time
What is the overall purpose of strategic management? - CORRECT ANSWER - Gain
competitive advantage
A(n) ___________ occurs when a firm performs below the industry average or is outperformed
by its competitors. - CORRECT ANSWER - competitive disadvantage
, What is strategy? - CORRECT ANSWER - the set of actions a firm takes to achieve a
competitive advantage
Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has -
CORRECT ANSWER - competitive parity
What is the overall purpose of a firm's strategy? - CORRECT ANSWER - Perform better than
other companies in the same industry.
The stakeholders of a firm are _________________. - CORRECT ANSWER - individuals or
groups that can affect and are affected by the actions of the firm
In order to determine if Home Depot has a competitive advantage, we must compare Home
Depot's performance to - CORRECT ANSWER - the performance of other firms in its
industry
Who among the following are considered internal stakeholders? - CORRECT ANSWER --
employees
-stockholders
-board members
A competitive advantage that lasts for a long period of time is said to be _________________. -
CORRECT ANSWER - sustainable
Effective stakeholder management _____________. - CORRECT ANSWER - helps a firm
build a strong public reputation
If a firm has a 10% return on invested capital while the industry average return on invested
capital is 18%, the firm has a(n) ______________. - CORRECT ANSWER - competitive
disadvantage
