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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 d
Student name: d
1) A good strategy allows a firm to achieve superior performance and sustainable competitive
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dadvantage without regard to the external environment.
d d d d d d
⊚ true d
⊚ false d
2) The following statement by the chief executive of MegaFilms movie studio should not be
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dused as a strategy: “We will produce the greatest films of the 21st century.”
d d d d d d d d d d d d d
⊚ true d
⊚ false d
3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
d d d d d d d d d d d d d d d d
d Incorporate feedback. d
⊚ true d
⊚ false d
4) Questions asked during the strategy analysis stage of the AFI framework should include
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d“What effects do forces in the external environment have on the firm’s potential to gain and
d d d d d d d d d d d d d d d
dsustain a competitive advantage?”
d d d
⊚ true d
⊚ false d
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
d d d d d d d d d d d d d d d d
dno matter what happens.
d d d
⊚ true d
⊚ false d
6) Because they are a crucial component of a firm’s success, customers are considered internal
d d d d d d d d d d d d d
dstakeholders.
⊚ true d
⊚ false d
7) A firm is required by society and its shareholders to meet its ethical and philanthropic
d d d d d d d d d d d d d d
dresponsibilities.
⊚ true d
⊚ false d
8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the
d d d d d d d d d d d d
dneeds of different stakeholders.
d d d
⊚ true d
⊚ false d
9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
d d d d d d d d d d d d d d d
dneeds help determining who his competition is, how he should craft his strategy to compete
d d d d d d d d d d d d d d
dand how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
d d d d d d d d d d d d d d
dhelp him get started. As a result, you will probably use which of the following?
d d d d d d d d d d d d d d
A) AFI strategy framework d d
B) Red Queen effect d d
C) competitive benchmarking d
D) Stakeholder Impact analysis d d
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a result,
d d d d d d d d d d d d d d d d
dRoberta says that her strategy is to focus on competitive benchmarking to achieve
d d d d d d d d d d d d
dcompetitive 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. d d d d d d d d d
B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should
d d d d d d d d d d d
proceed. d
C) Roberta should reevaluate her statement because it fails to mention more than one
d d d d d d d d d d d d
strategy. d
D) Roberta should reevaluate her statement because it fails to meet the principles of what
d d d d d d d d d d d d d
a strategy should be.
d d d d
11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number
d d d d d d d d d d d d d d d d
done competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza
d d d d d d d d d d d d d
dPalace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it
d d d d d d d d d d d d d d d
dhas a competitive advantage in its industry.
d d d d d d
A) True—competitive advantage is achieved through profitability alone. d d d d d d
B) True—competitive advantage is achieved since Tony has a positive net income. d d d d d d d d d d
C) False—competitive advantage is only achieved by generating above average returns, d d d d d d d d d
relative to competition.
d d d
D) False—Tony more than likely has a sustained competitive advantage since he’s been d d d d d d d d d d d
in business longer.
d d d
12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a
d d d d d d d d d d d d d d d d
dweek, which is about the same as the income of a close competitor. As a result, we can
d d d d d d d d d d d d d d d d d
dconclude that the two businesses also have a competitive parity in the industry.
d d d d d d d d d d d d
A) Correct—competitive advantage is achieved through profitability alone. d d d d d d
B) Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop d d d d d d d d d d
has a positive net income.
d d d d d
C) Correct—competitive parity is a performance of two or more firms at the same level. d d d d d d d d d d d d d
D) Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained d d d d d d d d d d d
competitive advantage because the business is diversified.
d d d d d d d
Strategic Management 6th Edition Rothaermel Frank
d d d d d
ISBN 9781265954574
d
Chapter 1-12 Answers are at the End of Each Chapter
d d d d d d d d d
Chapter 1 d
Student name: d
1) A good strategy allows a firm to achieve superior performance and sustainable competitive
d d d d d d d d d d d d
dadvantage without regard to the external environment.
d d d d d d
⊚ true d
⊚ false d
2) The following statement by the chief executive of MegaFilms movie studio should not be
d d d d d d d d d d d d d
dused as a strategy: “We will produce the greatest films of the 21st century.”
d d d d d d d d d d d d d
⊚ true d
⊚ false d
3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
d d d d d d d d d d d d d d d d
d Incorporate feedback. d
⊚ true d
⊚ false d
4) Questions asked during the strategy analysis stage of the AFI framework should include
d d d d d d d d d d d d
d“What effects do forces in the external environment have on the firm’s potential to gain and
d d d d d d d d d d d d d d d
dsustain a competitive advantage?”
d d d
⊚ true d
⊚ false d
,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
d d d d d d d d d d d d d d d d
dno matter what happens.
d d d
⊚ true d
⊚ false d
6) Because they are a crucial component of a firm’s success, customers are considered internal
d d d d d d d d d d d d d
dstakeholders.
⊚ true d
⊚ false d
7) A firm is required by society and its shareholders to meet its ethical and philanthropic
d d d d d d d d d d d d d d
dresponsibilities.
⊚ true d
⊚ false d
8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the
d d d d d d d d d d d d
dneeds of different stakeholders.
d d d
⊚ true d
⊚ false d
9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
d d d d d d d d d d d d d d d
dneeds help determining who his competition is, how he should craft his strategy to compete
d d d d d d d d d d d d d d
dand how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
d d d d d d d d d d d d d d
dhelp him get started. As a result, you will probably use which of the following?
d d d d d d d d d d d d d d
A) AFI strategy framework d d
B) Red Queen effect d d
C) competitive benchmarking d
D) Stakeholder Impact analysis d d
, 10) Roberta is interested in the concept of strategy and decides to create her own. As a result,
d d d d d d d d d d d d d d d d
dRoberta says that her strategy is to focus on competitive benchmarking to achieve
d d d d d d d d d d d d
dcompetitive advantage. Which is the best evaluation of Roberta’s statement?
d d d d d d d d d
A) Roberta’s strategy is clear, but she should provide more detail. d d d d d d d d d
B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should
d d d d d d d d d d d
proceed. d
C) Roberta should reevaluate her statement because it fails to mention more than one
d d d d d d d d d d d d
strategy. d
D) Roberta should reevaluate her statement because it fails to meet the principles of what
d d d d d d d d d d d d d
a strategy should be.
d d d d
11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number
d d d d d d d d d d d d d d d d
done competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza
d d d d d d d d d d d d d
dPalace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it
d d d d d d d d d d d d d d d
dhas a competitive advantage in its industry.
d d d d d d
A) True—competitive advantage is achieved through profitability alone. d d d d d d
B) True—competitive advantage is achieved since Tony has a positive net income. d d d d d d d d d d
C) False—competitive advantage is only achieved by generating above average returns, d d d d d d d d d
relative to competition.
d d d
D) False—Tony more than likely has a sustained competitive advantage since he’s been d d d d d d d d d d d
in business longer.
d d d
12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a
d d d d d d d d d d d d d d d d
dweek, which is about the same as the income of a close competitor. As a result, we can
d d d d d d d d d d d d d d d d d
dconclude that the two businesses also have a competitive parity in the industry.
d d d d d d d d d d d d
A) Correct—competitive advantage is achieved through profitability alone. d d d d d d
B) Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop d d d d d d d d d d
has a positive net income.
d d d d d
C) Correct—competitive parity is a performance of two or more firms at the same level. d d d d d d d d d d d d d
D) Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained d d d d d d d d d d d
competitive advantage because the business is diversified.
d d d d d d d
