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
UI U I UI UI UI UI UI UI UI




Chapter 1 UI




Student name: UI



1) A good strategy allows a firm to achieve superior performance and sustainable competiti
UI UI UI UI UI UI UI UI UI UI UI UI


ve advantage without regard to the external environment.
UI UI UI UI UI UI UI



⊚ true U I



⊚ false U I




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


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



⊚ true U I



⊚ false U I




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


and Incorporate feedback.
UI UI


⊚ true U I



⊚ false U I




4) Questions asked during the strategy analysis stage of the AFI framework should include
UI UI UI UI UI UI UI UI UI UI UI UI



“What effects do forces in the external environment have on the firm’s potential to gain
UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI



and sustain a competitive advantage?”
UI UI UI UI



⊚ true U I


⊚ false U I

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


o it no matter what happens.
UI UI UI UI UI


⊚ true U I



⊚ false U I




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



nal stakeholders.
UI



⊚ true U I



⊚ false U I




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


pic responsibilities.
UI



⊚ true U I



⊚ false U I




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


he needs of different stakeholders.
UI UI UI UI


⊚ true U I



⊚ false U I




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



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



ompete and how he’ll implement his strategy to achieve a competitive advantage. He’s hi
UI UI UI UI UI UI UI UI UI UI UI UI UI



red you to help him get started. As a result, you will probably use which of the followin
UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI


g?
A) AFI strategy framework UI UI


B) Red Queen effect UI UI


C) competitive benchmarking UI


D) Stakeholder Impact analysis UI UI

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


ult, Roberta says that her strategy is to focus on competitive benchmarking to achiev
UI UI UI UI UI UI UI UI UI UI UI UI UI



e competitive advantage. Which is the best evaluation of Roberta’s statement?
UI UI UI UI UI UI UI UI UI UI



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



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



ld proceed. UI


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


ne strategy. UI



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


hat a strategy should be.
UI UI UI UI




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



ber one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil Anthony’
UI UI UI UI UI UI UI UI UI UI UI UI UI



s Pizza Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, we can con
UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI



clude that it has a competitive advantage in its industry.
UI UI UI UI UI UI UI UI UI



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



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



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


ve to competition. UI UI



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



usiness longer. UI




12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,00
UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI



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


we can conclude that the two businesses also have a competitive parity in the industr
UI UI UI UI UI UI UI UI UI UI UI UI UI UI


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



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



ositive net income. UI UI



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



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



ive advantage because the business is diversified.
UI UI UI UI UI UI