TEST BANK For Strategic Management, 6th Edition 2024 By Rothaermel Frank, Verified Chapters 1 - 12, Complete Newest Version

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


Chapter 1

Student name:
1) A good strategy allows a firm to achieve superior performance and sustainable competitive
advantage without regard to the external environment.
⊚ true
⊚ false



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



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



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

,5) Once a strategy has been formulated and implemented, it is important that the firm sticks to it
no matter what happens.
⊚ true
⊚ false



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



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



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



9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He
needs help determining who his competition is, how he should craft his strategy to compete
and how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to
help him get started. As a result, you will probably use which of the following?
A) AFI strategy framework
B) Red Queen effect
C) competitive benchmarking
D) Stakeholder Impact analysis

,10) Roberta is interested in the concept of strategy and decides to create her own. As a result, R
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oberta says that her strategy is to focus on competitive benchmarking to achieve competiti
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ve advantage. Which is the best evaluation of Roberta’s statement?
gf gf gf gf gf gf gf gf gf




A) Roberta’s strategy is clear, but she should provide more detail. gf gf gf gf gf gf gf gf gf




B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she should p gf gf gf gf gf gf gf gf gf gf gf gf




roceed.
C) Roberta should reevaluate her statement because it fails to mention more than one st
gf gf gf gf gf gf gf gf gf gf gf gf gf




rategy.
D) Roberta should reevaluate her statement because it fails to meet the principles of what a
gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf




strategy should be. gf gf




11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its number o
gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf




ne competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’s Pizza Pal
gf gf gf gf gf gf gf gf gf gf gf gf gf gf




ace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that it has a
gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf g




competitive advantage in its industry.
f gf gf gf gf




A) True—competitive advantage is achieved through profitability alone. gf gf gf gf gf gf




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




C) False—
competitive advantage is only achieved by generating above average returns, relative t gf gf gf gf gf gf gf gf gf gf gf




o competition. gf




D) False—
Tony more than likely has a sustained competitive advantage since he’s been in busine
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ss longer. gf




12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a w
gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf gf




eek, which is about the same as the income of a close competitor. As a result, we can concl
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ude that the two businesses also have a competitive parity in the industry.
gf gf gf gf gf gf gf gf gf gf gf gf




A) Correct—competitive advantage is achieved through profitability alone. gf gf gf gf gf gf




B) Correct—
competitive advantage is achieved since Bill’s Auto & Airplane Repair shop has a positi gf gf gf gf gf gf gf gf gf gf gf gf gf




ve net income. gf gf




C) Correct—competitive parity is a performance of two or more firms at the same level. gf gf gf gf gf gf gf gf gf gf gf gf gf




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




advantage because the business is diversified. gf gf gf gf gf

, 13) To better achieve a competitive advantage, firms must now adopt a holistic approach towards s
gf gf gf gf gf gf gf gf gf gf gf gf gf gf




atisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What ter
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m is used for this approach?
gf gf gf gf gf




A) stakeholder strategy gf




B) internal shareholder strategy gf gf




C) value creation strategy gf gf




D) shareholder relationship strategy gf gf




14) All of the following are external stakeholders except which of the following?
gf gf gf gf gf gf gf gf gf gf gf




A) customers
B) creditors
C) alliance partners gf




D) competitors



15) John is a bit confused about the difference between stakeholders and stockholders. You meet
gf gf gf gf gf gf gf gf gf gf gf gf gf gf




with John and inform him that the main difference is that
gf gf gf gf gf gf gf gf gf gf




A) stakeholders are both internal and external to the firm while stockholders are c gf gf gf gf gf gf gf gf gf gf gf gf




onsidered external to the firm. gf gf gf gf




B) stakeholders are considered internal to the firm while stockholders are external to the fi gf gf gf gf gf gf gf gf gf gf gf gf gf




rm.
C) stakeholders can be both internal and external while stockholders own shares of a fi gf gf gf gf gf gf gf gf gf gf gf gf gf




rm and are classified as internal to the firm.
gf gf gf gf gf gf gf gf




D) stakeholders are external to the firm while stockholders are considered internal to the fi gf gf gf gf gf gf gf gf gf gf gf gf gf




rm.


16) Which of the following three important stakeholder attributes should managers pay special c
gf gf gf gf gf gf gf gf gf gf gf gf




lose attention to in order to better understand stakeholder impact analysis?
gf gf gf gf gf gf gf gf gf gf




A) competitive advantage, economic value, and time gf gf gf gf gf




B) power, legitimacy, and urgency gf gf gf




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