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

TESTBANKFOR
STRATEGICMANAGEMENT6 EDITION
J



ROTHAERMELFRANK
ISBN 978-1266191862
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,Chapter1-12 AnswersareattheEndofEachChapter
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Chapter 1 b




Studentname:
1) A good strategyallows a firm to achieve superior performance and sustainable competitive ad
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bvantage without regardJto theJexternal environment.
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⊚ true b



⊚ false b




2) TheJfollowing statement by the chief executive of MegaFilms movie studio should not be
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bused as a strategy: “WeJwill produceJthe greatestJfilms of the 21st century.”
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⊚ true b


⊚ false b




3) TheJthree tasks of the AFI strategy framework areJto Assemble a prototype,JFindJa buyer, and Inc
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borporate feedback. b


⊚ true b



⊚ false b




4) Questions asked during the strategy analysisJstage of the AFI frameworkJshouldJinclude “Wh
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bat effects do forces in the external environment haveJon the firm’s potential to gain and sustainJ
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ba competitive advantage?”
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⊚ true b


⊚ false b

,5) Once a strategyhas been formulated and implemented, it is important thatJthe firm sticks to itJnoJ
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b matter what happens. b b



⊚ true b



⊚ false b




6) Because they are a crucial component of a firm’s success, customers are considered internal sta
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keholders.
b



⊚ true b


⊚ false b




7) A firm isJrequired bysociety and its shareholders to meet its ethical and philanthropic res
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ponsibilities.
b



⊚ true b



⊚ false b




8) Stakeholder impact analysisJprovidesJadecision tool that helps strategic leaders recognizeJthe ne
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eds of different stakeholders.
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⊚ true b



⊚ false b




9) Juan wants toJopen his own hot dogJrestaurant but doesn’t know anything about business. He ne
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eds help determiningJwho his competitionJis, how he should craft his strategy to compete and h
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ow he’ll implement his strategy to achieve a competitiveJadvantage. He’s hired you toJhelp him
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get started. As a result, you will probably use which of the following?
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A) AFI strategy framework b b


B) Red Queen effect b b


C) competitiveJbenchmarking
D) Stakeholder Impact analysis b b

, 10) Roberta is interested in the concept of strategy andJdecides to createJher own. As a result, Ro
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berta saysJthat her strategy is to focus on competitiveJbenchmarking to achieve competitive
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advantage. Which isJthe best evaluation of Roberta’s statement?
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A) Roberta’s strategy is clear, but she should provideJmore detail.
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B) Roberta’s strategy reveals a clear strategic positionJandJtradeoff, so she shouldJpr
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oceed. b


C) Roberta should reevaluate her statement becauseJit fails to mention moreJthan oneJstr
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ategy. b


D) Roberta shouldJreevaluateJher statement because it fails to meetJthe principles of what aJs
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trategy shouldJbe.
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11) Tony’s PizzaJShop isJable to netJ$10,000 a week; thisJmakes the shopJprofitable. Its number on e
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competitor, Leo’s Pies, is also profitable, nettingJ$12,000Ja week. Lil Anthony’s Pizza Palac e
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nets $13,000Ja week. Since Tony’s PizzaJShop is profitable, weJcan concludeJthatJit has a co
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mpetitive advantage in itsJindustry.
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A) True—competitive advantage is achievedJthrough profitability alone. b b b b b



B) True—competitive advantageJis achieved sinceJTony has aJpositive net income. b b b b b b b



C) False—
competitive advantageis onlyachieved bygenerating above averageJreturns, relative t o
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competition.b



D) False—
Tony more than likelyhasJaJsustained competitive advantage sinceJhe’s beenJin busines s
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longer. b




12) Bill’sJAuto & Airplane Repair shop isJable to generateJa positive netJincomeJof $10,000 a we
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ek, which isJabout the sameJas the income of a close competitor. As a result, we can conclud e
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that the two businessesJalso haveJa competitive parity inJthe industry.
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A) Correct—competitive advantageJis achieved through profitability alone. b b b b b



B) Correct—
competitive advantage is achieved since Bill’s AutoJ& Airplane Repair shopJhas a positi
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ve net income.
b b b



C) Correct—competitive parity is aJperformance of two or more firms at theJsame level. b b b b b b b b b b b



D) Incorrect—
Bill’s AutoJ& Airplane Repair shop more than likely has a sustained competitive a
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dvantage because the business isJdiversified.
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