TESTn BANKn FOR
Strategic Management 6th Edition Rothaermel Frank
n n n n n
ISBN 9781265954574
n
Chapter 1-12 Answers are at the End of Each Chapter
n n n n n n n n n
Chapter 1 n
Student name:
n
1) A n good n strategynallowsn anfirmn tonachieven superiorn performancen andn sustainablen competitivena
dvantagen without n regard n ton then externaln environment.
⊚n true
⊚n false
2) Then followingn statement n byn thenchief n executiven ofn MegaFilmsn movien studionshould nnotn benu
sed n asn an strategy:n “Wen willn producen then greatest n filmsn of n then 21st n century.”
⊚n true
⊚n false
3) Then threen tasksn of n then AFInstrategynframeworkn aren ton Assemblen an prototype,n Findnan buyer,nand n I
ncorporaten feedback.
⊚n true
⊚n false
4) Questionsn asked n duringn thenstrategynanalysisn stagen of nthen AFI nframeworkn should n includen “W
hat n effectsndon forcesn innthenexternaln environment n havenonnthenfirm’sn potentialn ton gainn and n sust
ainn an competitiven advantage?”
⊚n true
⊚n false
,5) Oncen an strategyn hasnbeenn formulated nandnimplemented,n it nisn important nthatnthenfirmn sticksn tonit nn
on mattern what n happens.
⊚n true
⊚n false
6) Becausen theyn aren an crucialn component n ofnanfirm’sn success,n customersn aren consideredn internaln s
takeholders.
⊚n true
⊚n false
7) A n firmn isn required n byn societynandnitsn shareholdersn tonmeet n itsnethicaln andn philanthropicn r
esponsibilities.
⊚n true
⊚n false
8) Stakeholdern impact n analysisn providesn an decisionn tooln that n helpsn strategicn leadersn recognizen then
needsn of n different n stakeholders.
⊚n true
⊚n false
9) Juann wantsn ton opennhisn ownnhotndognrestaurant n butndoesn’t nknow nanythingnabout nbusiness.n Henn
eedsn helpn determiningn whon hisn competitionn is,n hownhenshould ncraft nhisn strategyntoncompetenand
n how n he’lln implement n hisn strategyn ton achieven an competitiven advantage.n He’snhired nyoun ton helpnh
imn get n started.n Asn an result,n youn willn probablyn usen whichn of n then following?
A) AFI n strategyn framework
B) Red n Queenn effect
C) competitiven benchmarking
D) Stakeholdern Impact n analysis
,10) Robertan isn interested n inn thenconcept nof nstrategyn andndecidesn ton createn hern own.n Asn an result,n
Robertan saysn that n hern strategynisn ton focusn onncompetitiven benchmarkingn ton achieven competi
tiven advantage.n Whichn isn then best n evaluationn of n Roberta’sn statement?
A) Roberta’sn strategyn isn clear,n but n shen should n providen moren detail.
B) Roberta’sn strategynrevealsn an clearn strategicn positionn andntradeoff,n son shen should n
proceed.
C) Robertan should n reevaluaten hern statement nbecausen it nfailsn tonmentionn moren thann onens
trategy.
D) Robertan should n reevaluaten hern statement nbecausen it nfailsn ton meet nthenprinciplesn of n whatna
n strategyn should n be.
11) Tony’sn Pizzan Shopn isn ablen ton net n$10,000nanweek;n thisn makesn then shopnprofitable.nItsn numbern o
nen competitor,n Leo’sn Pies,n isn alson profitable,n nettingn $12,000nan week.n Liln Anthony’sn Pizzan Pal
acen netsn $13,000n an week.n Sincen Tony’sn Pizzan Shopnisn profitable,n wen cannconcludenthatn it nhasn a
n competitiven advantagen inn itsn industry.
A) True—competitiven advantagen isn achieved n throughn profitabilityn alone.
B) True—competitiven advantagen isn achieved n sincen Tonyn hasn an positiven net n income.
C) False—
competitiven advantagen isn onlynachieved nbyngeneratingn abovenaveragen returns,n relativen
ton competition.
D) False—
Tonynmoren thann likelynhasn an sustained n competitiven advantagen sincen he’sn beenn inn busin
essn longer.
12) Bill’sn Auton &n Airplanen Repairn shopn isn ablen ton generaten an positiven net n incomen of n $10,000n an
week,n whichn isn about n thensamen asn thenincomen of nan closen competitor.n Asn anresult,n wencann con
cluden that n then twon businessesn alson haven an competitiven parityn inn then industry.
A) Correct—competitiven advantagen isn achieved n throughn profitabilityn alone.
B) Correct—
competitiven advantagen isn achieved nsincen Bill’sn Auton&nAirplanen Repairn shopnhasn an posit
iven net n income.
C) Correct—competitiven parityn isn an performancen of n twon orn moren firmsn at n then samen level.
D) Incorrect—
Bill’sn Auton &n Airplanen Repairn shopn moren thannlikelynhasn an sustained ncompetitiven
advantagen becausen then businessn isn diversified.
, 13) Ton bettern achieven an competitiven advantage,n firmsn must n nown adoptn an holisticn approachn towardsn s
atisfyingn multiplen stakeholdersn opposednton focusingn onnthen needsn ofn theirn shareholders.n What nte
rmn isn used n forn thisn approach?
A) stakeholdern strategy
B) internaln shareholdern strategy
C) valuen creationn strategy
D) shareholdern relationshipn strategy
14) Alln of n then followingn aren externaln stakeholdersn except n whichn of n then following?
A) customers
B) creditors
C) alliancen partners
D) competitors
15) Johnn isn an bit n confusednabout nthen differencen betweennstakeholdersn and n stockholders.n Youn meet n
withn Johnn and n informn himn that n then mainn differencen isn that
A) stakeholdersn aren bothn internaln andnexternaln tonthenfirmn whilen stockholdersnarenc
onsidered n externaln ton then firm.
B) stakeholdersn aren considered n internaln tonthenfirmn whilen stockholdersn arenexternaln tonthenf
irm.
C) stakeholdersn cann ben bothninternaln andnexternaln whilen stockholdersn ownnsharesn of nanf
irmn and n aren classified n asn internaln ton then firm.
D) stakeholdersn aren externaln ton thenfirmn whilen stockholdersn arenconsidered ninternaln tonthenf
irm.
16) Whichn of n then followingn threen important n stakeholdern attributesn should n managersn paynspecialn
closen attentionn ton inn ordern ton bettern understand n stakeholdern impact n analysis?
A) competitiven advantage,n economicn value,n and n time
B) power,n legitimacy,n and n urgency
C) gracen undern pressure,n financialn control,n and n reward n power
D) shareholdern rightsn plan,n board n representationn and n CEO n influence
Strategic Management 6th Edition Rothaermel Frank
n n n n n
ISBN 9781265954574
n
Chapter 1-12 Answers are at the End of Each Chapter
n n n n n n n n n
Chapter 1 n
Student name:
n
1) A n good n strategynallowsn anfirmn tonachieven superiorn performancen andn sustainablen competitivena
dvantagen without n regard n ton then externaln environment.
⊚n true
⊚n false
2) Then followingn statement n byn thenchief n executiven ofn MegaFilmsn movien studionshould nnotn benu
sed n asn an strategy:n “Wen willn producen then greatest n filmsn of n then 21st n century.”
⊚n true
⊚n false
3) Then threen tasksn of n then AFInstrategynframeworkn aren ton Assemblen an prototype,n Findnan buyer,nand n I
ncorporaten feedback.
⊚n true
⊚n false
4) Questionsn asked n duringn thenstrategynanalysisn stagen of nthen AFI nframeworkn should n includen “W
hat n effectsndon forcesn innthenexternaln environment n havenonnthenfirm’sn potentialn ton gainn and n sust
ainn an competitiven advantage?”
⊚n true
⊚n false
,5) Oncen an strategyn hasnbeenn formulated nandnimplemented,n it nisn important nthatnthenfirmn sticksn tonit nn
on mattern what n happens.
⊚n true
⊚n false
6) Becausen theyn aren an crucialn component n ofnanfirm’sn success,n customersn aren consideredn internaln s
takeholders.
⊚n true
⊚n false
7) A n firmn isn required n byn societynandnitsn shareholdersn tonmeet n itsnethicaln andn philanthropicn r
esponsibilities.
⊚n true
⊚n false
8) Stakeholdern impact n analysisn providesn an decisionn tooln that n helpsn strategicn leadersn recognizen then
needsn of n different n stakeholders.
⊚n true
⊚n false
9) Juann wantsn ton opennhisn ownnhotndognrestaurant n butndoesn’t nknow nanythingnabout nbusiness.n Henn
eedsn helpn determiningn whon hisn competitionn is,n hownhenshould ncraft nhisn strategyntoncompetenand
n how n he’lln implement n hisn strategyn ton achieven an competitiven advantage.n He’snhired nyoun ton helpnh
imn get n started.n Asn an result,n youn willn probablyn usen whichn of n then following?
A) AFI n strategyn framework
B) Red n Queenn effect
C) competitiven benchmarking
D) Stakeholdern Impact n analysis
,10) Robertan isn interested n inn thenconcept nof nstrategyn andndecidesn ton createn hern own.n Asn an result,n
Robertan saysn that n hern strategynisn ton focusn onncompetitiven benchmarkingn ton achieven competi
tiven advantage.n Whichn isn then best n evaluationn of n Roberta’sn statement?
A) Roberta’sn strategyn isn clear,n but n shen should n providen moren detail.
B) Roberta’sn strategynrevealsn an clearn strategicn positionn andntradeoff,n son shen should n
proceed.
C) Robertan should n reevaluaten hern statement nbecausen it nfailsn tonmentionn moren thann onens
trategy.
D) Robertan should n reevaluaten hern statement nbecausen it nfailsn ton meet nthenprinciplesn of n whatna
n strategyn should n be.
11) Tony’sn Pizzan Shopn isn ablen ton net n$10,000nanweek;n thisn makesn then shopnprofitable.nItsn numbern o
nen competitor,n Leo’sn Pies,n isn alson profitable,n nettingn $12,000nan week.n Liln Anthony’sn Pizzan Pal
acen netsn $13,000n an week.n Sincen Tony’sn Pizzan Shopnisn profitable,n wen cannconcludenthatn it nhasn a
n competitiven advantagen inn itsn industry.
A) True—competitiven advantagen isn achieved n throughn profitabilityn alone.
B) True—competitiven advantagen isn achieved n sincen Tonyn hasn an positiven net n income.
C) False—
competitiven advantagen isn onlynachieved nbyngeneratingn abovenaveragen returns,n relativen
ton competition.
D) False—
Tonynmoren thann likelynhasn an sustained n competitiven advantagen sincen he’sn beenn inn busin
essn longer.
12) Bill’sn Auton &n Airplanen Repairn shopn isn ablen ton generaten an positiven net n incomen of n $10,000n an
week,n whichn isn about n thensamen asn thenincomen of nan closen competitor.n Asn anresult,n wencann con
cluden that n then twon businessesn alson haven an competitiven parityn inn then industry.
A) Correct—competitiven advantagen isn achieved n throughn profitabilityn alone.
B) Correct—
competitiven advantagen isn achieved nsincen Bill’sn Auton&nAirplanen Repairn shopnhasn an posit
iven net n income.
C) Correct—competitiven parityn isn an performancen of n twon orn moren firmsn at n then samen level.
D) Incorrect—
Bill’sn Auton &n Airplanen Repairn shopn moren thannlikelynhasn an sustained ncompetitiven
advantagen becausen then businessn isn diversified.
, 13) Ton bettern achieven an competitiven advantage,n firmsn must n nown adoptn an holisticn approachn towardsn s
atisfyingn multiplen stakeholdersn opposednton focusingn onnthen needsn ofn theirn shareholders.n What nte
rmn isn used n forn thisn approach?
A) stakeholdern strategy
B) internaln shareholdern strategy
C) valuen creationn strategy
D) shareholdern relationshipn strategy
14) Alln of n then followingn aren externaln stakeholdersn except n whichn of n then following?
A) customers
B) creditors
C) alliancen partners
D) competitors
15) Johnn isn an bit n confusednabout nthen differencen betweennstakeholdersn and n stockholders.n Youn meet n
withn Johnn and n informn himn that n then mainn differencen isn that
A) stakeholdersn aren bothn internaln andnexternaln tonthenfirmn whilen stockholdersnarenc
onsidered n externaln ton then firm.
B) stakeholdersn aren considered n internaln tonthenfirmn whilen stockholdersn arenexternaln tonthenf
irm.
C) stakeholdersn cann ben bothninternaln andnexternaln whilen stockholdersn ownnsharesn of nanf
irmn and n aren classified n asn internaln ton then firm.
D) stakeholdersn aren externaln ton thenfirmn whilen stockholdersn arenconsidered ninternaln tonthenf
irm.
16) Whichn of n then followingn threen important n stakeholdern attributesn should n managersn paynspecialn
closen attentionn ton inn ordern ton bettern understand n stakeholdern impact n analysis?
A) competitiven advantage,n economicn value,n and n time
B) power,n legitimacy,n and n urgency
C) gracen undern pressure,n financialn control,n and n reward n power
D) shareholdern rightsn plan,n board n representationn and n CEO n influence
