TEST BANK FOR nd nd
Strategic Management 6th Edition Rothaermel Frank
nd nd nd nd nd
ISBN 9781265954574
nd
Chapter 1-12 nd n d Answers are at the End of Each Chapter
nd nd nd nd nd nd nd
Chapter 1 nd
Student name: nd
1) A ndgood ndstrategy ndallows nda ndfirm ndto ndachieve ndsuperior ndperformance ndand ndsustainable
competitive ndadvantage ndwithout ndregard ndto ndthe ndexternal ndenvironment.
nd
⊚ n d true
⊚ n d false
2) The ndfollowing ndstatement ndby ndthe ndchief ndexecutive ndof ndMegaFilms ndmovie ndstudio ndshould
ndnot ndbe ndused ndas nda ndstrategy: nd“We ndwill ndproduce ndthe ndgreatest ndfilms ndof ndthe nd21st
ndcentury.”
⊚ n d true
⊚ n d false
3) The ndthree ndtasks ndof ndthe ndAFI ndstrategy ndframework ndare ndto ndAssemble nda ndprototype, ndFind nda
buyer, ndand ndIncorporate ndfeedback.
nd
⊚ n d true
⊚ n d false
4) Questions ndasked ndduring ndthe ndstrategy ndanalysis ndstage ndof ndthe ndAFI ndframework ndshould
ndinclude nd“What ndeffects nddo ndforces ndin ndthe ndexternal ndenvironment ndhave ndon ndthe ndfirm’s
ndpotential ndto ndgain ndand ndsustain nda ndcompetitive ndadvantage?”
⊚ n d true
⊚ n d false
,5) Once nda ndstrategy ndhas ndbeen ndformulated ndand ndimplemented, ndit ndis ndimportant ndthat ndthe ndfirm
sticks ndto ndit ndno ndmatter ndwhat ndhappens.
nd
⊚ n d true
⊚ n d false
6) Because ndthey ndare nda ndcrucial ndcomponent ndof nda ndfirm’s ndsuccess, ndcustomers ndare ndconsidered
internal ndstakeholders.
nd
⊚ n d true
⊚ n d false
7) A ndfirm ndis ndrequired ndby ndsociety ndand ndits ndshareholders ndto ndmeet ndits ndethical ndand
nd philanthropic ndresponsibilities.
⊚ n d true
⊚ n d false
8) Stakeholder ndimpact ndanalysis ndprovides nda nddecision ndtool ndthat ndhelps ndstrategic ndleaders
recognize ndthe ndneeds ndof nddifferent ndstakeholders.
nd
⊚ n d true
⊚ n d false
9) Juan ndwants ndto ndopen ndhis ndown ndhot nddog ndrestaurant ndbut nddoesn’t ndknow ndanything ndabout
ndbusiness. ndHe ndneeds ndhelp nddetermining ndwho ndhis ndcompetition ndis, ndhow ndhe ndshould ndcraft
ndhis ndstrategy ndto ndcompete ndand ndhow ndhe’ll ndimplement ndhis ndstrategy ndto ndachieve nda
ndcompetitive ndadvantage. ndHe’s ndhired ndyou ndto ndhelp ndhim ndget ndstarted. ndAs nda ndresult, ndyou
ndwill ndprobably nduse ndwhich ndof ndthe ndfollowing?
A) AFI ndstrategy ndframework
B) Red ndQueen ndeffect
C) competitive ndbenchmarking
D) Stakeholder ndImpact ndanalysis
,10) Roberta ndis ndinterested ndin ndthe ndconcept ndof ndstrategy ndand nddecides ndto ndcreate ndher ndown. ndAs
nda ndresult, ndRoberta ndsays ndthat ndher ndstrategy ndis ndto ndfocus ndon ndcompetitive ndbenchmarking
ndto ndachieve ndcompetitive ndadvantage. ndWhich ndis ndthe ndbest ndevaluation ndof ndRoberta’s
ndstatement?
A) Roberta’s ndstrategy ndis ndclear, ndbut ndshe ndshould ndprovide ndmore nddetail.
B) Roberta’s ndstrategy ndreveals nda ndclear ndstrategic ndposition ndand ndtradeoff, ndso ndshe
ndshould ndproceed.
C) Roberta ndshould ndreevaluate ndher ndstatement ndbecause ndit ndfails ndto ndmention ndmore
ndthan ndone ndstrategy.
D) Roberta ndshould ndreevaluate ndher ndstatement ndbecause ndit ndfails ndto ndmeet ndthe ndprinciples
ndof ndwhat nda ndstrategy ndshould ndbe.
11) Tony’s ndPizza ndShop ndis ndable ndto ndnet nd$10,000 nda ndweek; ndthis ndmakes ndthe ndshop ndprofitable.
ndIts ndnumber ndone ndcompetitor, ndLeo’s ndPies, ndis ndalso ndprofitable, ndnetting nd$12,000 nda ndweek.
ndLil ndAnthony’s ndPizza ndPalace ndnets nd$13,000 nda ndweek. ndSince ndTony’s ndPizza ndShop ndis
ndprofitable, ndwe ndcan ndconclude ndthat ndit ndhas nda ndcompetitive ndadvantage ndin ndits ndindustry.
A) True—competitive ndadvantage ndis ndachieved ndthrough ndprofitability ndalone.
B) True—competitive ndadvantage ndis ndachieved ndsince ndTony ndhas nda ndpositive ndnet ndincome.
C) False—competitive ndadvantage ndis ndonly ndachieved ndby ndgenerating ndabove ndaverage
ndreturns, ndrelative ndto ndcompetition.
D) False—Tony ndmore ndthan ndlikely ndhas nda ndsustained ndcompetitive ndadvantage ndsince
ndhe’s ndbeen ndin ndbusiness ndlonger.
12) Bill’s ndAuto nd& ndAirplane ndRepair ndshop ndis ndable ndto ndgenerate nda ndpositive ndnet ndincome ndof
nd$10,000 nda ndweek, ndwhich ndis ndabout ndthe ndsame ndas ndthe ndincome ndof nda ndclose ndcompetitor.
ndAs nda ndresult, ndwe ndcan ndconclude ndthat ndthe ndtwo ndbusinesses ndalso ndhave nda ndcompetitive
ndparity ndin ndthe ndindustry.
A) Correct—competitive ndadvantage ndis ndachieved ndthrough ndprofitability ndalone.
B) Correct—competitive ndadvantage ndis ndachieved ndsince ndBill’s ndAuto nd& ndAirplane ndRepair
ndshop ndhas nda ndpositive ndnet ndincome.
C) Correct—competitive ndparity ndis nda ndperformance ndof ndtwo ndor ndmore ndfirms ndat ndthe ndsame
ndlevel.
D) Incorrect—Bill’s ndAuto nd& ndAirplane ndRepair ndshop ndmore ndthan ndlikely ndhas nda
ndsustained ndcompetitive ndadvantage ndbecause ndthe ndbusiness ndis nddiversified.
, 13) To ndbetter ndachieve nda ndcompetitive ndadvantage, ndfirms ndmust ndnow ndadopt nda ndholistic ndapproach
ndtowards ndsatisfying ndmultiple ndstakeholders ndopposed ndto ndfocusing ndon ndthe ndneeds ndof ndtheir
ndshareholders. ndWhat ndterm ndis ndused ndfor ndthis ndapproach?
A) stakeholder ndstrategy
B) internal ndshareholder ndstrategy
C) value ndcreation ndstrategy
D) shareholder ndrelationship ndstrategy
14) All ndof ndthe ndfollowing ndare ndexternal ndstakeholders ndexcept ndwhich ndof ndthe ndfollowing?
A) customers
B) creditors
C) alliance ndpartners
D) competitors
15) John ndis nda ndbit ndconfused ndabout ndthe nddifference ndbetween ndstakeholders ndand ndstockholders.
nd You ndmeet ndwith ndJohn ndand ndinform ndhim ndthat ndthe ndmain nddifference ndis ndthat
A) stakeholders ndare ndboth ndinternal ndand ndexternal ndto ndthe ndfirm ndwhile
ndstockholders ndare ndconsidered ndexternal ndto ndthe ndfirm.
B) stakeholders ndare ndconsidered ndinternal ndto ndthe ndfirm ndwhile ndstockholders ndare ndexternal
ndto ndthe ndfirm.
C) stakeholders ndcan ndbe ndboth ndinternal ndand ndexternal ndwhile ndstockholders ndown
ndshares ndof nda ndfirm ndand ndare ndclassified ndas ndinternal ndto ndthe ndfirm.
D) stakeholders ndare ndexternal ndto ndthe ndfirm ndwhile ndstockholders ndare ndconsidered ndinternal
ndto ndthe ndfirm.
16) Which ndof ndthe ndfollowing ndthree ndimportant ndstakeholder ndattributes ndshould ndmanagers ndpay
ndspecial ndclose ndattention ndto ndin ndorder ndto ndbetter ndunderstand ndstakeholder ndimpact
ndanalysis?
A) competitive ndadvantage, ndeconomic ndvalue, ndand ndtime
B) power, ndlegitimacy, ndand ndurgency
C) grace ndunder ndpressure, ndfinancial ndcontrol, ndand ndreward ndpower
D) shareholder ndrights ndplan, ndboard ndrepresentation ndand ndCEO ndinfluence
Strategic Management 6th Edition Rothaermel Frank
nd nd nd nd nd
ISBN 9781265954574
nd
Chapter 1-12 nd n d Answers are at the End of Each Chapter
nd nd nd nd nd nd nd
Chapter 1 nd
Student name: nd
1) A ndgood ndstrategy ndallows nda ndfirm ndto ndachieve ndsuperior ndperformance ndand ndsustainable
competitive ndadvantage ndwithout ndregard ndto ndthe ndexternal ndenvironment.
nd
⊚ n d true
⊚ n d false
2) The ndfollowing ndstatement ndby ndthe ndchief ndexecutive ndof ndMegaFilms ndmovie ndstudio ndshould
ndnot ndbe ndused ndas nda ndstrategy: nd“We ndwill ndproduce ndthe ndgreatest ndfilms ndof ndthe nd21st
ndcentury.”
⊚ n d true
⊚ n d false
3) The ndthree ndtasks ndof ndthe ndAFI ndstrategy ndframework ndare ndto ndAssemble nda ndprototype, ndFind nda
buyer, ndand ndIncorporate ndfeedback.
nd
⊚ n d true
⊚ n d false
4) Questions ndasked ndduring ndthe ndstrategy ndanalysis ndstage ndof ndthe ndAFI ndframework ndshould
ndinclude nd“What ndeffects nddo ndforces ndin ndthe ndexternal ndenvironment ndhave ndon ndthe ndfirm’s
ndpotential ndto ndgain ndand ndsustain nda ndcompetitive ndadvantage?”
⊚ n d true
⊚ n d false
,5) Once nda ndstrategy ndhas ndbeen ndformulated ndand ndimplemented, ndit ndis ndimportant ndthat ndthe ndfirm
sticks ndto ndit ndno ndmatter ndwhat ndhappens.
nd
⊚ n d true
⊚ n d false
6) Because ndthey ndare nda ndcrucial ndcomponent ndof nda ndfirm’s ndsuccess, ndcustomers ndare ndconsidered
internal ndstakeholders.
nd
⊚ n d true
⊚ n d false
7) A ndfirm ndis ndrequired ndby ndsociety ndand ndits ndshareholders ndto ndmeet ndits ndethical ndand
nd philanthropic ndresponsibilities.
⊚ n d true
⊚ n d false
8) Stakeholder ndimpact ndanalysis ndprovides nda nddecision ndtool ndthat ndhelps ndstrategic ndleaders
recognize ndthe ndneeds ndof nddifferent ndstakeholders.
nd
⊚ n d true
⊚ n d false
9) Juan ndwants ndto ndopen ndhis ndown ndhot nddog ndrestaurant ndbut nddoesn’t ndknow ndanything ndabout
ndbusiness. ndHe ndneeds ndhelp nddetermining ndwho ndhis ndcompetition ndis, ndhow ndhe ndshould ndcraft
ndhis ndstrategy ndto ndcompete ndand ndhow ndhe’ll ndimplement ndhis ndstrategy ndto ndachieve nda
ndcompetitive ndadvantage. ndHe’s ndhired ndyou ndto ndhelp ndhim ndget ndstarted. ndAs nda ndresult, ndyou
ndwill ndprobably nduse ndwhich ndof ndthe ndfollowing?
A) AFI ndstrategy ndframework
B) Red ndQueen ndeffect
C) competitive ndbenchmarking
D) Stakeholder ndImpact ndanalysis
,10) Roberta ndis ndinterested ndin ndthe ndconcept ndof ndstrategy ndand nddecides ndto ndcreate ndher ndown. ndAs
nda ndresult, ndRoberta ndsays ndthat ndher ndstrategy ndis ndto ndfocus ndon ndcompetitive ndbenchmarking
ndto ndachieve ndcompetitive ndadvantage. ndWhich ndis ndthe ndbest ndevaluation ndof ndRoberta’s
ndstatement?
A) Roberta’s ndstrategy ndis ndclear, ndbut ndshe ndshould ndprovide ndmore nddetail.
B) Roberta’s ndstrategy ndreveals nda ndclear ndstrategic ndposition ndand ndtradeoff, ndso ndshe
ndshould ndproceed.
C) Roberta ndshould ndreevaluate ndher ndstatement ndbecause ndit ndfails ndto ndmention ndmore
ndthan ndone ndstrategy.
D) Roberta ndshould ndreevaluate ndher ndstatement ndbecause ndit ndfails ndto ndmeet ndthe ndprinciples
ndof ndwhat nda ndstrategy ndshould ndbe.
11) Tony’s ndPizza ndShop ndis ndable ndto ndnet nd$10,000 nda ndweek; ndthis ndmakes ndthe ndshop ndprofitable.
ndIts ndnumber ndone ndcompetitor, ndLeo’s ndPies, ndis ndalso ndprofitable, ndnetting nd$12,000 nda ndweek.
ndLil ndAnthony’s ndPizza ndPalace ndnets nd$13,000 nda ndweek. ndSince ndTony’s ndPizza ndShop ndis
ndprofitable, ndwe ndcan ndconclude ndthat ndit ndhas nda ndcompetitive ndadvantage ndin ndits ndindustry.
A) True—competitive ndadvantage ndis ndachieved ndthrough ndprofitability ndalone.
B) True—competitive ndadvantage ndis ndachieved ndsince ndTony ndhas nda ndpositive ndnet ndincome.
C) False—competitive ndadvantage ndis ndonly ndachieved ndby ndgenerating ndabove ndaverage
ndreturns, ndrelative ndto ndcompetition.
D) False—Tony ndmore ndthan ndlikely ndhas nda ndsustained ndcompetitive ndadvantage ndsince
ndhe’s ndbeen ndin ndbusiness ndlonger.
12) Bill’s ndAuto nd& ndAirplane ndRepair ndshop ndis ndable ndto ndgenerate nda ndpositive ndnet ndincome ndof
nd$10,000 nda ndweek, ndwhich ndis ndabout ndthe ndsame ndas ndthe ndincome ndof nda ndclose ndcompetitor.
ndAs nda ndresult, ndwe ndcan ndconclude ndthat ndthe ndtwo ndbusinesses ndalso ndhave nda ndcompetitive
ndparity ndin ndthe ndindustry.
A) Correct—competitive ndadvantage ndis ndachieved ndthrough ndprofitability ndalone.
B) Correct—competitive ndadvantage ndis ndachieved ndsince ndBill’s ndAuto nd& ndAirplane ndRepair
ndshop ndhas nda ndpositive ndnet ndincome.
C) Correct—competitive ndparity ndis nda ndperformance ndof ndtwo ndor ndmore ndfirms ndat ndthe ndsame
ndlevel.
D) Incorrect—Bill’s ndAuto nd& ndAirplane ndRepair ndshop ndmore ndthan ndlikely ndhas nda
ndsustained ndcompetitive ndadvantage ndbecause ndthe ndbusiness ndis nddiversified.
, 13) To ndbetter ndachieve nda ndcompetitive ndadvantage, ndfirms ndmust ndnow ndadopt nda ndholistic ndapproach
ndtowards ndsatisfying ndmultiple ndstakeholders ndopposed ndto ndfocusing ndon ndthe ndneeds ndof ndtheir
ndshareholders. ndWhat ndterm ndis ndused ndfor ndthis ndapproach?
A) stakeholder ndstrategy
B) internal ndshareholder ndstrategy
C) value ndcreation ndstrategy
D) shareholder ndrelationship ndstrategy
14) All ndof ndthe ndfollowing ndare ndexternal ndstakeholders ndexcept ndwhich ndof ndthe ndfollowing?
A) customers
B) creditors
C) alliance ndpartners
D) competitors
15) John ndis nda ndbit ndconfused ndabout ndthe nddifference ndbetween ndstakeholders ndand ndstockholders.
nd You ndmeet ndwith ndJohn ndand ndinform ndhim ndthat ndthe ndmain nddifference ndis ndthat
A) stakeholders ndare ndboth ndinternal ndand ndexternal ndto ndthe ndfirm ndwhile
ndstockholders ndare ndconsidered ndexternal ndto ndthe ndfirm.
B) stakeholders ndare ndconsidered ndinternal ndto ndthe ndfirm ndwhile ndstockholders ndare ndexternal
ndto ndthe ndfirm.
C) stakeholders ndcan ndbe ndboth ndinternal ndand ndexternal ndwhile ndstockholders ndown
ndshares ndof nda ndfirm ndand ndare ndclassified ndas ndinternal ndto ndthe ndfirm.
D) stakeholders ndare ndexternal ndto ndthe ndfirm ndwhile ndstockholders ndare ndconsidered ndinternal
ndto ndthe ndfirm.
16) Which ndof ndthe ndfollowing ndthree ndimportant ndstakeholder ndattributes ndshould ndmanagers ndpay
ndspecial ndclose ndattention ndto ndin ndorder ndto ndbetter ndunderstand ndstakeholder ndimpact
ndanalysis?
A) competitive ndadvantage, ndeconomic ndvalue, ndand ndtime
B) power, ndlegitimacy, ndand ndurgency
C) grace ndunder ndpressure, ndfinancial ndcontrol, ndand ndreward ndpower
D) shareholder ndrights ndplan, ndboard ndrepresentation ndand ndCEO ndinfluence
