TEST BANK FOR Strategic Management: Concepts 6th edition by Frank T. Rothaermel ISBN:978-1266191862 ALL CHAPTERS COVERED YOUR ULTIMATE GUIDE 100% VERIFIED A+ GRADE ASSURED!!!!!!!! NEW LATEST UPDATE!!!!!!!!!!

,Chapter 1-12 Answers are at the End of Each Chapter
UJ U J UJ UJ UJ UJ UJ UJ UJ




Chapter 1 UJ




Student name: UJ



1) A good strategy allows a firm to achieve superior performance and sustainable competit
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


ive advantage without regard to the external environment.
UJ UJ UJ UJ UJ UJ UJ



⊚ true U J



⊚ false U J




2) The following statement by the chief executive of MegaFilms movie studio should not
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ U


be used as a strategy: “We will produce the greatest films of the 21st century.”
J UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



⊚ true U J



⊚ false U J




3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer,
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


and Incorporate feedback.
UJ UJ


⊚ true U J



⊚ false U J




4) Questions asked during the strategy analysis stage of the AFI framework should includ
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



e “What effects do forces in the external environment have on the firm’s potential to gai
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



n and sustain a competitive advantage?”
UJ UJ UJ UJ UJ



⊚ true U J


⊚ false U J

,5) Once a strategy has been formulated and implemented, it is important that the firm sticks t
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


o it no matter what happens.
UJ UJ UJ UJ UJ


⊚ true U J



⊚ false U J




6) Because they are a crucial component of a firm’s success, customers are considered inter
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



nal stakeholders.
UJ



⊚ true U J



⊚ false U J




7) A firm is required by society and its shareholders to meet its ethical and philanthro
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


pic responsibilities.
UJ



⊚ true U J



⊚ false U J




8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize t
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


he needs of different stakeholders.
UJ UJ UJ UJ


⊚ true U J



⊚ false U J




9) Juan wants to open his own hot dog restaurant but doesn’t know anything about business.
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



He needs help determining who his competition is, how he should craft his strategy to
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



compete and how he’ll implement his strategy to achieve a competitive advantage. He’s
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



hired you to help him get started. As a result, you will probably use which of the follo
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


wing?
A) AFI strategy framework UJ UJ


B) Red Queen effect UJ UJ


C) competitive benchmarking UJ


D) Stakeholder Impact analysis UJ UJ

, 10) Roberta is interested in the concept of strategy and decides to create her own. As a re
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


sult, Roberta says that her strategy is to focus on competitive benchmarking to achie
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



ve competitive advantage. Which is the best evaluation of Roberta’s statement?
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



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



B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she shou
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



ld proceed. UJ


C) Roberta should reevaluate her statement because it fails to mention more than
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


one strategy. UJ



D) Roberta should reevaluate her statement because it fails to meet the principles of w
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


hat a strategy should be. UJ UJ UJ UJ




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



mber one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthon
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



y’s Pizza Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can c
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



onclude that it has a competitive advantage in its industry.
UJ UJ UJ UJ UJ UJ UJ UJ UJ



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



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



C) False—
competitive advantage is only achieved by generating above average returns, relati
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


ve to competition. UJ UJ



D) False—
Tony more than likely has a sustained competitive advantage since he’s been in b
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



usiness longer. UJ




12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,0
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ



00 a week, which is about the same as the income of a close competitor. As a result
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


, we can conclude that the two businesses also have a competitive parity in the indu
UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ UJ


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



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



positive net income. UJ UJ



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



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



tive advantage because the business is diversified.
UJ UJ UJ UJ UJ UJ