TEST BANK FOR Strategic Management
6th Edition by Rothaermel Frank ISBN 9781265954574
Chapter 1-12 Answers are at the End of Each Chapter
,Chapter 1 t
Student name:
t
1) Atgoodtstrategytallowstatfirmttotachievetsuperiortperformancetandtsustainabletcompetitivetadv
antagetwithouttregardttotthetexternaltenvironment.
⊚t true
⊚t false
2) ThetfollowingtstatementtbytthetchieftexecutivetoftMegaFilmstmovietstudiotshouldtnottbetusedtast
atstrategy:t“Wetwilltproducetthetgreatesttfilmstoftthet21sttcentury.”
⊚t true
⊚t false
3) ThetthreettaskstoftthetAFItstrategytframeworktarettotAssembletatprototype,tFindtatbuyer,tandtIncorp
oratetfeedback.
⊚t true
⊚t false
4) QuestionstaskedtduringtthetstrategytanalysiststagetoftthetAFItframeworktshouldtincludet“Whattef
fectstdotforcestintthetexternaltenvironmentthavetontthetfirm’stpotentialttotgaintandtsustaintatcompe
titivetadvantage?”
⊚t true
⊚t false
,5) Oncetatstrategythastbeentformulatedtandtimplemented,tittistimportanttthattthetfirmtsticksttotittnotmatt
ertwhatthappens.
⊚t true
⊚t false
6) Becausettheytaretatcrucialtcomponenttoftatfirm’stsuccess,tcustomerstaretconsideredtinternaltstakeh
olders.
⊚t true
⊚t false
7) Atfirmtistrequiredtbytsocietytandtitstshareholdersttotmeettitstethicaltandtphilanthropictrespon
sibilities.
⊚t true
⊚t false
8) Stakeholdertimpacttanalysistprovidestatdecisionttooltthatthelpststrategictleaderstrecognizetthetnee
dstoftdifferenttstakeholders.
⊚t true
⊚t false
9) Juantwantsttotopenthistownthottdogtrestauranttbuttdoesn’ttknowtanythingtabouttbusiness.tHetneedsth
elptdeterminingtwhothistcompetitiontis,thowthetshouldtcraftthiststrategyttotcompetetandthowthe’lltim
plementthiststrategyttotachievetatcompetitivetadvantage.tHe’sthiredtyouttothelpthimtgettstarted.tAst
atresult,tyoutwilltprobablytusetwhichtoftthetfollowing?
A) AFItstrategytframework
B) RedtQueenteffect
C) competitivetbenchmarking
D) StakeholdertImpacttanalysis
, 10) Robertatistinterestedtintthetconcepttoftstrategytandtdecidesttotcreatethertown.tAstatresult,tRober
tatsaystthatthertstrategytisttotfocustontcompetitivetbenchmarkingttotachievetcompetitivetadvant
age.tWhichtistthetbesttevaluationtoftRoberta’ststatement?
A) Roberta’ststrategytistclear,tbuttshetshouldtprovidetmoretdetail.
B) Roberta’ststrategytrevealstatcleartstrategictpositiontandttradeoff,tsotshetshouldtpro
ceed.
C) Robertatshouldtreevaluatethertstatementtbecausetittfailsttotmentiontmoretthantonetstrat
egy.
D) Robertatshouldtreevaluatethertstatementtbecausetittfailsttotmeettthetprinciplestoftwhattatstr
ategytshouldtbe.
11) Tony’stPizzatShoptistablettotnett$10,000tatweek;tthistmakestthetshoptprofitable.tItstnumbertonetco
mpetitor,tLeo’stPies,tistalsotprofitable,tnettingt$12,000tatweek.tLiltAnthony’stPizzatPalacetnetst$1
3,000tatweek.tSincetTony’stPizzatShoptistprofitable,twetcantconcludetthattitthastatcompetitivetadv
antagetintitstindustry.
A) True—competitivetadvantagetistachievedtthroughtprofitabilitytalone.
B) True—competitivetadvantagetistachievedtsincetTonythastatpositivetnettincome.
C) False—
competitivetadvantagetistonlytachievedtbytgeneratingtabovetaveragetreturns,trelativett
otcompetition.
D) False—
Tonytmoretthantlikelythastatsustainedtcompetitivetadvantagetsincethe’stbeentintbusinesstlo
nger.
12) Bill’stAutot&tAirplanetRepairtshoptistablettotgeneratetatpositivetnettincometoft$10,000tatweek,t
whichtistabouttthetsametastthetincometoftatclosetcompetitor.tAstatresult,twetcantconcludetthattthet
twotbusinessestalsothavetatcompetitivetparitytintthetindustry.
A) Correct—competitivetadvantagetistachievedtthroughtprofitabilitytalone.
B) Correct—
competitivetadvantagetistachievedtsincetBill’stAutot&tAirplanetRepairtshopthastatpositivetne
ttincome.
C) Correct—competitivetparitytistatperformancetofttwotortmoretfirmstattthetsametlevel.
D) Incorrect—
Bill’stAutot&tAirplanetRepairtshoptmoretthantlikelythastatsustainedtcompetitivetadvan
tagetbecausetthetbusinesstistdiversified.
6th Edition by Rothaermel Frank ISBN 9781265954574
Chapter 1-12 Answers are at the End of Each Chapter
,Chapter 1 t
Student name:
t
1) Atgoodtstrategytallowstatfirmttotachievetsuperiortperformancetandtsustainabletcompetitivetadv
antagetwithouttregardttotthetexternaltenvironment.
⊚t true
⊚t false
2) ThetfollowingtstatementtbytthetchieftexecutivetoftMegaFilmstmovietstudiotshouldtnottbetusedtast
atstrategy:t“Wetwilltproducetthetgreatesttfilmstoftthet21sttcentury.”
⊚t true
⊚t false
3) ThetthreettaskstoftthetAFItstrategytframeworktarettotAssembletatprototype,tFindtatbuyer,tandtIncorp
oratetfeedback.
⊚t true
⊚t false
4) QuestionstaskedtduringtthetstrategytanalysiststagetoftthetAFItframeworktshouldtincludet“Whattef
fectstdotforcestintthetexternaltenvironmentthavetontthetfirm’stpotentialttotgaintandtsustaintatcompe
titivetadvantage?”
⊚t true
⊚t false
,5) Oncetatstrategythastbeentformulatedtandtimplemented,tittistimportanttthattthetfirmtsticksttotittnotmatt
ertwhatthappens.
⊚t true
⊚t false
6) Becausettheytaretatcrucialtcomponenttoftatfirm’stsuccess,tcustomerstaretconsideredtinternaltstakeh
olders.
⊚t true
⊚t false
7) Atfirmtistrequiredtbytsocietytandtitstshareholdersttotmeettitstethicaltandtphilanthropictrespon
sibilities.
⊚t true
⊚t false
8) Stakeholdertimpacttanalysistprovidestatdecisionttooltthatthelpststrategictleaderstrecognizetthetnee
dstoftdifferenttstakeholders.
⊚t true
⊚t false
9) Juantwantsttotopenthistownthottdogtrestauranttbuttdoesn’ttknowtanythingtabouttbusiness.tHetneedsth
elptdeterminingtwhothistcompetitiontis,thowthetshouldtcraftthiststrategyttotcompetetandthowthe’lltim
plementthiststrategyttotachievetatcompetitivetadvantage.tHe’sthiredtyouttothelpthimtgettstarted.tAst
atresult,tyoutwilltprobablytusetwhichtoftthetfollowing?
A) AFItstrategytframework
B) RedtQueenteffect
C) competitivetbenchmarking
D) StakeholdertImpacttanalysis
, 10) Robertatistinterestedtintthetconcepttoftstrategytandtdecidesttotcreatethertown.tAstatresult,tRober
tatsaystthatthertstrategytisttotfocustontcompetitivetbenchmarkingttotachievetcompetitivetadvant
age.tWhichtistthetbesttevaluationtoftRoberta’ststatement?
A) Roberta’ststrategytistclear,tbuttshetshouldtprovidetmoretdetail.
B) Roberta’ststrategytrevealstatcleartstrategictpositiontandttradeoff,tsotshetshouldtpro
ceed.
C) Robertatshouldtreevaluatethertstatementtbecausetittfailsttotmentiontmoretthantonetstrat
egy.
D) Robertatshouldtreevaluatethertstatementtbecausetittfailsttotmeettthetprinciplestoftwhattatstr
ategytshouldtbe.
11) Tony’stPizzatShoptistablettotnett$10,000tatweek;tthistmakestthetshoptprofitable.tItstnumbertonetco
mpetitor,tLeo’stPies,tistalsotprofitable,tnettingt$12,000tatweek.tLiltAnthony’stPizzatPalacetnetst$1
3,000tatweek.tSincetTony’stPizzatShoptistprofitable,twetcantconcludetthattitthastatcompetitivetadv
antagetintitstindustry.
A) True—competitivetadvantagetistachievedtthroughtprofitabilitytalone.
B) True—competitivetadvantagetistachievedtsincetTonythastatpositivetnettincome.
C) False—
competitivetadvantagetistonlytachievedtbytgeneratingtabovetaveragetreturns,trelativett
otcompetition.
D) False—
Tonytmoretthantlikelythastatsustainedtcompetitivetadvantagetsincethe’stbeentintbusinesstlo
nger.
12) Bill’stAutot&tAirplanetRepairtshoptistablettotgeneratetatpositivetnettincometoft$10,000tatweek,t
whichtistabouttthetsametastthetincometoftatclosetcompetitor.tAstatresult,twetcantconcludetthattthet
twotbusinessestalsothavetatcompetitivetparitytintthetindustry.
A) Correct—competitivetadvantagetistachievedtthroughtprofitabilitytalone.
B) Correct—
competitivetadvantagetistachievedtsincetBill’stAutot&tAirplanetRepairtshopthastatpositivetne
ttincome.
C) Correct—competitivetparitytistatperformancetofttwotortmoretfirmstattthetsametlevel.
D) Incorrect—
Bill’stAutot&tAirplanetRepairtshoptmoretthantlikelythastatsustainedtcompetitivetadvan
tagetbecausetthetbusinesstistdiversified.
