TEST BANK for Strategic Management 6th Edition By Frank T. Rothaermel All Chapters 1 To 12 Complete Downloadable PDF

TESTBANKFOR
STRATEGICMANAGEMENT6THEDITION J



ROTHAERMELFRANK
ISBN 978-1266191862
J

,Chapter 1-12 AnswersareattheEndofEachChapter
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Chapter 1 ww




Studentname:
1) A good strategy allows a firm to achievesuperior performance and sustainable competitiv
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e ad vantage without regard Jto theJexternal environment.
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⊚ true w w



⊚ false w w




2) TheJfollowing statement by the chief executive of MegaFilms movie studio should not
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be us ed as a strategy: “WeJwill produceJthe greatest Jfilms of the 21st century.”
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⊚ true w w



⊚ false w w




3) TheJthree tasks of the AFI strategy framework areJto Assemble a prototype,JFindJa buyer, an
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d Inc orporate feedback.
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⊚ true w w



⊚ false w w




4) Questions asked during the strategy analysisJstage of the AFI frameworkJshould Jinclude
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“Wh at effects do forces in the external environment haveJon the firm’s potential to gain
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and sustainJ a competitive advantage?”
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⊚ true w w



⊚ false w w

,5) Once a strategy has been formulated and implemented, it is important that Jthe firm sticks to
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it JnoJ matter what happens.
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⊚ true w w



⊚ false w w




6) Because they are a crucial component of a firm’s success, customers are considered intern
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al sta keholders.
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⊚ true w w



⊚ false w w




7) A firm isJrequired by society and its shareholders to meet its ethical and philanthrop
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ic res ponsibilities.
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⊚ true w w



⊚ false w w




8) Stakeholder impact analysisJprovidesJadecision tool that helps strategic leaders recognizeJth
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e ne eds of different stakeholders.
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⊚ true w w



⊚ false w w




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



B) Red Queen effect ww ww



C) competitiveJbenchmarking
D) Stakeholder Impact analysis ww ww

, 10) Roberta is interested in the concept of strategy andJdecides to createJher own. As a res
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ult, Ro berta saysJthat her strategy is to focus on competitiveJbenchmarking to achiev
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e competitive 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 shoul
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d Jpr oceed. ww



C) Roberta should reevaluate her statement becauseJit fails to mention moreJthan on
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eJstr ategy. ww



D) Roberta shouldJreevaluateJher statement because it fails to meet Jthe principles of wha
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t aJs trategy should Jbe.
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11) Tony’s PizzaJShop isJable to net J$10,000 a week; thisJmakes the shopJprofitable. Its numbe
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r on e competitor, Leo’s Pies, is also profitable, nettingJ$12,000Ja week. Lil Anthony’s
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Pizza Palac e nets $13,000Ja week. Since Tony’s PizzaJShop is profitable, weJcan conclu
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deJthat Jit has a co mpetitive advantage in itsJindustry.
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A) True—competitive advantage is achieved Jthrough profitability alone. ww ww ww ww ww



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



C) False—
competitive advantageis only achieved by generating above averageJreturns, relativ
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e t o competition.ww ww ww



D) False—
Tony more than likely hasJaJsustained competitive advantage sinceJhe’s beenJin busi
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nes s longer. ww ww




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



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



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



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