,TEST BANK FOR
k k
Strategic kManagement k6th kEdition kRothaermel kFrank
ISBN k9781265954574
Chapter k1-12 Answers kare kat kthe kEnd kof kEach kChapter
Chapter k1
Student kname:
1) A kgood kstrategy kallows ka kfirm kto kachieve ksuperior kperformance kand
ksustainable kcompetitive kadvantage kwithout kregard kto kthe kexternal
kenvironment.
⊚ true
⊚ false
2) The kfollowing kstatement k by kthe k chief kexecutive k of k MegaFilms k movie k studio k should k not
be k used k as k a k strategy: k “We k will k produce k the k greatest k films k of k the k 21st k century.”
⊚ true
⊚ false
3) The kthree ktasks kof kthe kAFI kstrategy kframework kare kto kAssemble ka kprototype, kFind ka
kbuyer, kand kIncorporate kfeedback.
⊚ true
⊚ false
4) Questions kasked kduring kthe kstrategy kanalysis kstage kof kthe kAFI kframework kshould
kinclude k“What keffects kdo kforces kin kthe kexternal kenvironment khave kon kthe kfirm’s
kpotential kto kgain kand ksustain ka kcompetitive kadvantage?”
⊚ true
⊚ false
,5) Once ka kstrategy khas kbeen kformulated kand kimplemented, kit kis kimportant kthat kthe kfirm
k sticks kto kit kno kmatter kwhat khappens.
⊚ true
⊚ false
6) Because kthey kare ka kcrucial kcomponent kof ka kfirm’s ksuccess, kcustomers kare
k considered kinternal kstakeholders.
⊚ true
⊚ false
7) A kfirm kis krequired kby ksociety kand kits kshareholders kto kmeet kits kethical
k and kphilanthropic kresponsibilities.
⊚ true
⊚ false
8) Stakeholder kimpact kanalysis kprovides ka kdecision ktool kthat khelps kstrategic kleaders
krecognize kthe kneeds kof kdifferent kstakeholders.
⊚ true
⊚ false
9) Juan kwants kto kopen khis kown khot kdog krestaurant kbut kdoesn’t kknow kanything kabout
kbusiness. kHe kneeds khelp kdetermining kwho khis kcompetition kis, khow khe kshould kcraft khis
kstrategy kto kcompete kand khow khe’ll kimplement khis kstrategy kto kachieve ka kcompetitive
kadvantage. kHe’s khired k you kto khelp khim kget kstarted. kAs ka kresult, kyou kwill kprobably kuse
kwhich kof kthe k following?
A) AFI k strategy k framework
B) Red k Queen k effect
C) competitive k benchmarking
D) Stakeholder k Impact k analysis
, 10) Roberta kis kinterested kin kthe kconcept kof kstrategy kand kdecides kto kcreate kher kown. kAs
ka kresult, kRoberta ksays kthat kher kstrategy kis kto kfocus kon kcompetitive kbenchmarking
kto kachieve kcompetitive kadvantage. kWhich kis kthe kbest kevaluation kof kRoberta’s
kstatement?
A) Roberta’s k strategy kis k clear, k but k she k should k provide k more k detail.
B) Roberta’s kstrategy kreveals ka kclear kstrategic kposition kand ktradeoff, kso
kshe kshould kproceed.
C) Roberta kshould kreevaluate kher kstatement kbecause kit kfails kto kmention kmore
kthan kone kstrategy.
D) Roberta kshould kreevaluate kher kstatement kbecause kit kfails kto kmeet kthe kprinciples
kof kwhat ka kstrategy kshould kbe.
11) Tony’s kPizza kShop kis kable kto knet k$10,000 ka kweek; kthis kmakes kthe kshop kprofitable. kIts
knumber kone kcompetitor, kLeo’s kPies, kis kalso kprofitable, knetting k$12,000 ka kweek. kLil
kAnthony’s kPizza kPalace knets k$13,000 ka kweek. kSince kTony’s kPizza kShop kis kprofitable,
kwe kcan kconclude kthat kit khas ka kcompetitive kadvantage kin kits kindustry.
A) True—competitive k advantage k is k achieved k through k profitability kalone.
B) True—competitive k advantage k is k achieved k since k Tony khas k a k positive k net k income.
C) False—competitive kadvantage kis konly kachieved kby kgenerating kabove
kaverage kreturns, krelative kto kcompetition.
D) False—Tony kmore kthan klikely khas ka ksustained kcompetitive kadvantage ksince
khe’s kbeen kin kbusiness klonger.
12) Bill’s kAuto k& kAirplane kRepair kshop kis kable kto kgenerate ka kpositive knet kincome kof
k$10,000 k a kweek, kwhich kis kabout kthe ksame kas kthe kincome kof ka kclose kcompetitor. kAs
ka kresult, kwe k can kconclude kthat kthe k two kbusinesses kalso khave ka kcompetitive kparity
kin kthe k industry.
A) Correct—competitive k advantage k is k achieved k through k profitability kalone.
B) Correct—competitive kadvantage kis kachieved ksince kBill’s kAuto k& kAirplane
kRepair kshop khas ka kpositive knet kincome.
C) Correct—competitive k parity kis k a k performance k of k two k or k more k firms k at k the k same
k level.
D) Incorrect—Bill’s kAuto k& kAirplane kRepair kshop kmore kthan klikely
khas ka ksustained kcompetitive kadvantage kbecause kthe kbusiness kis
kdiversified.
k k
Strategic kManagement k6th kEdition kRothaermel kFrank
ISBN k9781265954574
Chapter k1-12 Answers kare kat kthe kEnd kof kEach kChapter
Chapter k1
Student kname:
1) A kgood kstrategy kallows ka kfirm kto kachieve ksuperior kperformance kand
ksustainable kcompetitive kadvantage kwithout kregard kto kthe kexternal
kenvironment.
⊚ true
⊚ false
2) The kfollowing kstatement k by kthe k chief kexecutive k of k MegaFilms k movie k studio k should k not
be k used k as k a k strategy: k “We k will k produce k the k greatest k films k of k the k 21st k century.”
⊚ true
⊚ false
3) The kthree ktasks kof kthe kAFI kstrategy kframework kare kto kAssemble ka kprototype, kFind ka
kbuyer, kand kIncorporate kfeedback.
⊚ true
⊚ false
4) Questions kasked kduring kthe kstrategy kanalysis kstage kof kthe kAFI kframework kshould
kinclude k“What keffects kdo kforces kin kthe kexternal kenvironment khave kon kthe kfirm’s
kpotential kto kgain kand ksustain ka kcompetitive kadvantage?”
⊚ true
⊚ false
,5) Once ka kstrategy khas kbeen kformulated kand kimplemented, kit kis kimportant kthat kthe kfirm
k sticks kto kit kno kmatter kwhat khappens.
⊚ true
⊚ false
6) Because kthey kare ka kcrucial kcomponent kof ka kfirm’s ksuccess, kcustomers kare
k considered kinternal kstakeholders.
⊚ true
⊚ false
7) A kfirm kis krequired kby ksociety kand kits kshareholders kto kmeet kits kethical
k and kphilanthropic kresponsibilities.
⊚ true
⊚ false
8) Stakeholder kimpact kanalysis kprovides ka kdecision ktool kthat khelps kstrategic kleaders
krecognize kthe kneeds kof kdifferent kstakeholders.
⊚ true
⊚ false
9) Juan kwants kto kopen khis kown khot kdog krestaurant kbut kdoesn’t kknow kanything kabout
kbusiness. kHe kneeds khelp kdetermining kwho khis kcompetition kis, khow khe kshould kcraft khis
kstrategy kto kcompete kand khow khe’ll kimplement khis kstrategy kto kachieve ka kcompetitive
kadvantage. kHe’s khired k you kto khelp khim kget kstarted. kAs ka kresult, kyou kwill kprobably kuse
kwhich kof kthe k following?
A) AFI k strategy k framework
B) Red k Queen k effect
C) competitive k benchmarking
D) Stakeholder k Impact k analysis
, 10) Roberta kis kinterested kin kthe kconcept kof kstrategy kand kdecides kto kcreate kher kown. kAs
ka kresult, kRoberta ksays kthat kher kstrategy kis kto kfocus kon kcompetitive kbenchmarking
kto kachieve kcompetitive kadvantage. kWhich kis kthe kbest kevaluation kof kRoberta’s
kstatement?
A) Roberta’s k strategy kis k clear, k but k she k should k provide k more k detail.
B) Roberta’s kstrategy kreveals ka kclear kstrategic kposition kand ktradeoff, kso
kshe kshould kproceed.
C) Roberta kshould kreevaluate kher kstatement kbecause kit kfails kto kmention kmore
kthan kone kstrategy.
D) Roberta kshould kreevaluate kher kstatement kbecause kit kfails kto kmeet kthe kprinciples
kof kwhat ka kstrategy kshould kbe.
11) Tony’s kPizza kShop kis kable kto knet k$10,000 ka kweek; kthis kmakes kthe kshop kprofitable. kIts
knumber kone kcompetitor, kLeo’s kPies, kis kalso kprofitable, knetting k$12,000 ka kweek. kLil
kAnthony’s kPizza kPalace knets k$13,000 ka kweek. kSince kTony’s kPizza kShop kis kprofitable,
kwe kcan kconclude kthat kit khas ka kcompetitive kadvantage kin kits kindustry.
A) True—competitive k advantage k is k achieved k through k profitability kalone.
B) True—competitive k advantage k is k achieved k since k Tony khas k a k positive k net k income.
C) False—competitive kadvantage kis konly kachieved kby kgenerating kabove
kaverage kreturns, krelative kto kcompetition.
D) False—Tony kmore kthan klikely khas ka ksustained kcompetitive kadvantage ksince
khe’s kbeen kin kbusiness klonger.
12) Bill’s kAuto k& kAirplane kRepair kshop kis kable kto kgenerate ka kpositive knet kincome kof
k$10,000 k a kweek, kwhich kis kabout kthe ksame kas kthe kincome kof ka kclose kcompetitor. kAs
ka kresult, kwe k can kconclude kthat kthe k two kbusinesses kalso khave ka kcompetitive kparity
kin kthe k industry.
A) Correct—competitive k advantage k is k achieved k through k profitability kalone.
B) Correct—competitive kadvantage kis kachieved ksince kBill’s kAuto k& kAirplane
kRepair kshop khas ka kpositive knet kincome.
C) Correct—competitive k parity kis k a k performance k of k two k or k more k firms k at k the k same
k level.
D) Incorrect—Bill’s kAuto k& kAirplane kRepair kshop kmore kthan klikely
khas ka ksustained kcompetitive kadvantage kbecause kthe kbusiness kis
kdiversified.
