TEST BANK FOR Strategic Management: Concepts 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
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Chapter 1 OL




Student name: OL



1) A good strategy allows a firm to achieve superior performance and sustainable compe
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titive advantage without regard to the external environment.
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⊚ true O L



⊚ false O L




2) The following statement by the chief executive of MegaFilms movie studio should n
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ot be used as a strategy: “We will produce the greatest films of the 21st century.”
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⊚ true O L



⊚ false O L




3) The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buy
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er, and Incorporate feedback.
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⊚ true O L



⊚ false O L




4) Questions asked during the strategy analysis stage of the AFI framework should incl
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ude “What effects do forces in the external environment have on the firm’s potential t
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o gain and sustain a competitive advantage?”
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⊚ true O L


⊚ false O L

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



⊚ false O L




6) Because they are a crucial component of a firm’s success, customers are considered int
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ernal stakeholders.
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⊚ true O L



⊚ false O L




7) A firm is required by society and its shareholders to meet its ethical and philant
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hropic responsibilities.
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⊚ true O L



⊚ false O L




8) Stakeholder impact analysis provides a decision tool that helps strategic leaders recogniz
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e the needs of different stakeholders.
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⊚ true O L



⊚ false O L




9) Juan wants to open his own hot dog restaurant but doesn’t know anything about busine
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ss. He needs help determining who his competition is, how he should craft his strateg
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y to compete and how he’ll implement his strategy to achieve a competitive advantag
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e. He’s hired you to help him get started. As a result, you will probably use which o
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f the following?
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A) AFI strategy framework OL OL


B) Red Queen effect OL OL


C) competitive benchmarking OL


D) Stakeholder Impact analysis OL OL

, 10) Roberta is interested in the concept of strategy and decides to create her own. As a
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result, Roberta says that her strategy is to focus on competitive benchmarking to a
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chieve competitive advantage. Which is the best evaluation of Roberta’s statement?
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A) Roberta’s strategy is clear, but she should provide more detail.
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B) Roberta’s strategy reveals a clear strategic position and tradeoff, so she sh
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ould proceed. OL


C) Roberta should reevaluate her statement because it fails to mention more than
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one strategy.
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D) Roberta should reevaluate her statement because it fails to meet the principles of
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what a strategy should be.
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11) Tony’s Pizza Shop is able to net $10,000 a week; this makes the shop profitable. Its
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number one competitor, Leo’s Pies, is also profitable, netting $12,000 a week. Lil A
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nthony’s Pizza Palace nets $13,000 a week. Since Tony’s Pizza Shop is profitable, w
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e can conclude that it has a competitive advantage in its industry.
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A) True—competitive advantage is achieved through profitability alone. OL OL OL OL OL OL



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



C) False—
competitive advantage is only achieved by generating above average returns, rel
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ative to competition. OL OL



D) False—
Tony more than likely has a sustained competitive advantage since he’s been in
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business longer.
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12) Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10
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,000 a week, which is about the same as the income of a close competitor. As a r
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esult, we can conclude that the two businesses also have a competitive parity in th
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e industry.
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A) Correct—competitive advantage is achieved through profitability alone. OL OL OL OL OL OL



B) Correct—
competitive advantage is achieved since Bill’s Auto & Airplane Repair shop has
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a positive net income.
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C) Correct—competitive parity is a performance of two or more firms at the same level. OL OL OL OL OL OL OL OL OL OL OL OL OL



D) Incorrect—
Bill’s Auto & Airplane Repair shop more than likely has a sustained comp
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etitive advantage because the business is diversified.
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