TEST BANK For Strategic Management, 6th Edition 2025 By Rothaermel Frank, Verified Chapters 1 - 12, Complete Newest Version

TEST BANK FOR e e




Strategic Management 6th Edition Rothaermel Frank
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ISBN 9781265954574
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Chapter 1-12 Answers are at the End of Each Chapter
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Chapter 1 e




Student name: e



1) A good strategy allows a firm to achieve superior performance and sustainable competitive
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eadvantage without regard to the external environment.
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⊚ true e


⊚ false e




2) The following statement by the chief executive of MegaFilms movie studio should not be
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eused as a strategy: “We will produce the greatest films of the 21st century.”
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⊚ true e



⊚ false e




3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
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e Incorporate feedback. e



⊚ true e



⊚ false e




4) Questions asked during the strategy analysis stage of the AFI framework should include
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e“What effects do forces in the external environment have on the firm’s potential to gain and
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esustain a competitive advantage?”
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⊚ true e


⊚ false e

,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
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eno matter what happens.
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⊚ true e



⊚ false e




6) Because they are a crucial component of a firm’s success, customers are considered internal
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estakeholders.
⊚ true e


⊚ false e




7) A firm is required by society and its shareholders to meet its ethical and philanthropic
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eresponsibilities.
⊚ true e



⊚ false e




8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the
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eneeds of different stakeholders.
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⊚ true e



⊚ false e




9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
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eneeds help determining who his competition is, how he should craft his strategy to compete
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eand how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
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ehelp him get started. As a result, you will probably use which of the following?
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A) AFI strategy framework e e


B) Red Queen effect e e


C) competitive benchmarking e


D) Stakeholder Impact analysis e e

,10) Roberta is interested in the concept of strategy and decides to create her own. As a result,
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eRoberta says that her strategy is to focus on competitive benchmarking to achieve
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ecompetitive advantage. Which is the best evaluation of Roberta’s statement?
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A) Roberta’s strategy is clear, but she should provide more detail. e e e e e e e e e



B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should
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proceed. e



C) Roberta should reevaluate her statement because it fails to mention more than one
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strategy. e


D) Roberta should reevaluate her statement because it fails to meet the principles of what
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a strategy should be.
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11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number
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eone competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza
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ePalace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it
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ehas a competitive advantage in its industry.
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A) True—competitive advantage is achieved through profitability alone. e e e e e e



B) True—competitive advantage is achieved since Tony has a positive net income. e e e e e e e e e e



C) False—competitive advantage is only achieved by generating above average returns, e e e e e e e e e



relative to competition.
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D) False—Tony more than likely has a sustained competitive advantage since he’s been e e e e e e e e e e e



in business longer.
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12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a
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eweek, which is about the same as the income of a close competitor. As a result, we can
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econclude that the two businesses also have a competitive parity in the industry.
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A) Correct—competitive advantage is achieved through profitability alone. e e e e e e



B) Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop e e e e e e e e e e



has a positive net income.
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C) Correct—competitive parity is a performance of two or more firms at the same level. e e e e e e e e e e e e e



D) Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained e e e e e e e e e e e



competitive advantage because the business is diversified.
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, 13) To better achieve a competitive advantage, firms must now adopt a holistic approach towards
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esatisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What
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eterm is used for this approach?
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A) stakeholder strategy e


B) internal shareholder strategy e e


C) value creation strategy e e


D) shareholder relationship strategy e e




14) All of the following are external stakeholders except which of the following?
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A) customers
B) creditors
C) alliance partners e


D) competitors



15) John is a bit confused about the difference between stakeholders and stockholders. You meet
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ewith John and inform him that the main difference is that
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A) stakeholders are both internal and external to the firm while stockholders are
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considered external to the firm.
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B) stakeholders are considered internal to the firm while stockholders are external to the
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firm. e


C) stakeholders can be both internal and external while stockholders own shares of a
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firm and are classified as internal to the firm.
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D) stakeholders are external to the firm while stockholders are considered internal to the
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firm. e




16) Which of the following three important stakeholder attributes should managers pay special
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eclose attention to in order to better understand stakeholder impact analysis?
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A) competitive advantage, economic value, and time e e e e e


B) power, legitimacy, and urgency e e e


C) grace under pressure, financial control, and reward power
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D) shareholder rights plan, board representation and CEO influence e e e e e e e