M
Frank Rothaermel strategic management Test bank 6th edition
UPDATED 2023 QUESTIONS AND ANSWERS GRADED A+
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPa
d
B. iPhon
M
e
C. iPo
d
D. iTune
ED
s
2. is best described as an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
ST
A. Supply chain
management
B. Integrated technology
management
C. Strategic
U
management
D. Inventory
management
D
3. is best described as a set of goal-directed actions a firm takes to gain andsustain
superior performance relative to competitors.
Y
A. Behavior
modification
B. Strateg
y
C. Cred
o
D. Competency
management
MEDSTUDY.COM
,M
4. Which of the following stages of the strategic management process involves an
evaluation of a firm's external and internal environments?
A. Strategy
analysis
B. Strategy
implementation
C. Strategy
formulation
D. Strategy
control
5. In , a firm frames a guiding policy to address the competitive challenge.
M
A. strategy
control
B. strategy
ED
implementation
C. strategy
formulation
D. strategy
analysis
ST
6. Through , a firm puts its guiding policy into practice by employing a set of
coherent actions.
A. strategy
U
control
B. strategy
implementation
D
C. strategy
formulation
D. strategy
Y
analysis
MEDSTUDY.COM
,M
7. A firm that achieves superior performance relative to other firms in the same industryor the
industry average has a(n) .
A. competitive
advantage
B. balanced
scorecard
C. power
position
D. equity
leverage
8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—aproduct
that gained popularity among diverse groups. Soon, other companies startedto sell their own
brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia
M
Foods decided to limit its variety of energy drinks to only two. However, it ensured that these
two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc.
consistently outperformed its competitorsfor ten years. In this scenario, Cadia Foods Inc. has
ED
maintained a through its
innovative strategy.
A. balanced
scorecard
ST
B. fiduciary
responsibility
C. consistent power
position
D. sustainable competitive
U
advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
D
advantage?
Y
A. Newon Inc. generated a revenue of $300,000 this financial year, which is close tothe
industrial revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this year compared to its previousyear's
sales of 5000 units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of 68 percent in the social
networking industry for more than three years.
D. Max Electrova Inc. was able to outperform its competitors with its new productionsystem, in
terms of revenue, for a brief period of four months.
MEDSTUDY.COM
, M
10. If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of thefollowing
will help determine if it has a competitive advantage over other pharmaceutical companies?
A. Comparing the return to the return on invested capital obtained by other firmsin the
industry
B. Assessing the value based on the shareholders' expectations of return ontheir
capital
C. Evaluating the liquidity ratios for other pharmaceutical
companies
D. Comparing the value to the history of the firm's return of investment over anumber of
years
11. Underperformance relative to other firms in the same industry or the industryaverage
results in a(n) for a firm.
M
A. sustainable competitive
advantage
ED
B. increased power
distance
C. diseconomies of
scope
D. competitive
disadvantage
ST
12. New Communications Inc. is a newspaper publishing company whose average returnon
invested capital is approximately 5 percent. Because newspaper publishing is adeclining
industry, the industry average has been negative (-5 percent) for the last few years. In this
scenario, New Communications Inc. has a .
U
A. competitive
D
advantage
B. balanced
scorecard
Y
C. competitive
disadvantage
D. power
position
MEDSTUDY.COM
Frank Rothaermel strategic management Test bank 6th edition
UPDATED 2023 QUESTIONS AND ANSWERS GRADED A+
1. Keeping in mind Apple's competitive advantage, which of the following products was
introduced by Apple in 2007?
A. iPa
d
B. iPhon
M
e
C. iPo
d
D. iTune
ED
s
2. is best described as an integrative management field that combines analysis,
formulation, and implementation in the quest for competitive advantage.
ST
A. Supply chain
management
B. Integrated technology
management
C. Strategic
U
management
D. Inventory
management
D
3. is best described as a set of goal-directed actions a firm takes to gain andsustain
superior performance relative to competitors.
Y
A. Behavior
modification
B. Strateg
y
C. Cred
o
D. Competency
management
MEDSTUDY.COM
,M
4. Which of the following stages of the strategic management process involves an
evaluation of a firm's external and internal environments?
A. Strategy
analysis
B. Strategy
implementation
C. Strategy
formulation
D. Strategy
control
5. In , a firm frames a guiding policy to address the competitive challenge.
M
A. strategy
control
B. strategy
ED
implementation
C. strategy
formulation
D. strategy
analysis
ST
6. Through , a firm puts its guiding policy into practice by employing a set of
coherent actions.
A. strategy
U
control
B. strategy
implementation
D
C. strategy
formulation
D. strategy
Y
analysis
MEDSTUDY.COM
,M
7. A firm that achieves superior performance relative to other firms in the same industryor the
industry average has a(n) .
A. competitive
advantage
B. balanced
scorecard
C. power
position
D. equity
leverage
8. Cadia Foods Inc. was the first company to start selling energy drinks in its country—aproduct
that gained popularity among diverse groups. Soon, other companies startedto sell their own
brands of energy drinks, thereby giving Cadia Foods ample competition. In response, Cadia
M
Foods decided to limit its variety of energy drinks to only two. However, it ensured that these
two flavors were free of calories and low in cost. With this innovation, Cadia Foods Inc.
consistently outperformed its competitorsfor ten years. In this scenario, Cadia Foods Inc. has
ED
maintained a through its
innovative strategy.
A. balanced
scorecard
ST
B. fiduciary
responsibility
C. consistent power
position
D. sustainable competitive
U
advantage
9. Which of the following scenarios illustrates a firm that has a sustainable competitive
D
advantage?
Y
A. Newon Inc. generated a revenue of $300,000 this financial year, which is close tothe
industrial revenue average of $320,000.
B. SM Inc. almost doubled its sales to 8500 units this year compared to its previousyear's
sales of 5000 units, though the industry average is 10,000 units.
C. TrueLink Corp. was able to hold its market share of 68 percent in the social
networking industry for more than three years.
D. Max Electrova Inc. was able to outperform its competitors with its new productionsystem, in
terms of revenue, for a brief period of four months.
MEDSTUDY.COM
, M
10. If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of thefollowing
will help determine if it has a competitive advantage over other pharmaceutical companies?
A. Comparing the return to the return on invested capital obtained by other firmsin the
industry
B. Assessing the value based on the shareholders' expectations of return ontheir
capital
C. Evaluating the liquidity ratios for other pharmaceutical
companies
D. Comparing the value to the history of the firm's return of investment over anumber of
years
11. Underperformance relative to other firms in the same industry or the industryaverage
results in a(n) for a firm.
M
A. sustainable competitive
advantage
ED
B. increased power
distance
C. diseconomies of
scope
D. competitive
disadvantage
ST
12. New Communications Inc. is a newspaper publishing company whose average returnon
invested capital is approximately 5 percent. Because newspaper publishing is adeclining
industry, the industry average has been negative (-5 percent) for the last few years. In this
scenario, New Communications Inc. has a .
U
A. competitive
D
advantage
B. balanced
scorecard
Y
C. competitive
disadvantage
D. power
position
MEDSTUDY.COM
