Strategic Management, Concepts and
Cases – Competitiveness and
Globalization, 13th Edition
ST
UV
TEST BANK
IA
_A
Michael A. Hitt
PP
R. Duane Ireland
Robert E. Hoskisson
RO
Comprehensive Test Bank for Instructors
VE
and Students
D?
© Michael A. Hitt, R. Duane Ireland & Robert E. Hoskisson
?
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Test Bank for Strategic Management, Concepts and Cases –
Competitiveness and Globalization, 13th Edition
Michael A. Hitt, R. Duane Ireland & Robert E. Hoskisson
ISBN: 9780357033838
ST
Section I: STRATEGIC FOUNDATIONS
1. Strategic Management and Strategic Competitiveness
UV
2. The External Environment: Opportunities, Threats, Industry Competition,
and Competitor Analysis
3. The Internal Organization: Resources, Capabilities, Core Competencies,
and Competitive Advantages
IA
Section II: STRATEGY FORMULATION
4. Business-Level Strategy
_A
5. Competitive Rivalry and Competitive Dynamics
6. Corporate-Level Strategy
7. Merger and Acquisition Strategies
8. International Strategy
PP
9. Cooperative Strategy
Section III: STRATEGY GOVERNANCE & IMPLEMENTATION
10. Corporate Governance
RO
11. Organizational Structure and Controls
12. Strategic Leadership
13. Strategic Entrepreneurship
VE
D?
?
©MEDCONNOISSEUR
, :
Chapter 01: Strategic Management and Strategic Competitiveness
True / False
ST
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
a. True
b. False
ANSWER: True
UV
2. Alligator Enterprises has earned above-average returns since its founding five years ago. No other firm has challenged
Alligator in its particular market niche; therefore, the firm's owners can feel secure that Alligator has established a
competitive advantage.
a. True
b. False
IA
ANSWER: False
3. The goal of strategy implementation is to develop a permanent competitive advantage.
a. True
_A
b. False
ANSWER: False
4. Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result
from a particular investment.
PP
a. True
b. False
ANSWER: True
RO
5. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
VE
6. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar
amount of risk.
a. True
b. False
D?
ANSWER: True
7. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure
the performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
?
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
, :
8. To implement a firm’s strategies, the firm takes actions to enact each strategy with the intent of achieving strategic
competitiveness and above-average returns.
a. True
b. False
ANSWER: True
ST
9. Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in
the past.
a. True
UV
b. False
ANSWER: False
10. The two primary drivers of hypercompetition are the emergence of the global economy and technology.
a. True
b. False
IA
ANSWER: True
11. The rate of technology diffusion has increased significantly over the last two decades.
a. True
_A
b. False
ANSWER: True
12. RelTech is a firm in the electronics industry. It could protect its proprietary technology through patents. However, it
likely will not apply for patents to keep competitors from gaining access to the technological knowledge included in the
PP
patent application.
a. True
b. False
ANSWER: True
RO
13. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
a. True
b. False
ANSWER: False
VE
14. The rapid rate of technological diffusion has increased the competitive benefits of patents.
a. True
b. False
ANSWER: False
D?
15. Companies searching for opportunities in the global economy would likely conclude that the three leading European
economies of Germany, United Kingdom, and France would be good investments because they are predicted to continue
increasing in size.
a. True
b. False
?
ANSWER: False
16. Since the 1980s, the basis for competition has shifted from intangible resources to hard assets.
Copyright Cengage Learning. Powered by Cognero. Page 3
Cases – Competitiveness and
Globalization, 13th Edition
ST
UV
TEST BANK
IA
_A
Michael A. Hitt
PP
R. Duane Ireland
Robert E. Hoskisson
RO
Comprehensive Test Bank for Instructors
VE
and Students
D?
© Michael A. Hitt, R. Duane Ireland & Robert E. Hoskisson
?
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Test Bank for Strategic Management, Concepts and Cases –
Competitiveness and Globalization, 13th Edition
Michael A. Hitt, R. Duane Ireland & Robert E. Hoskisson
ISBN: 9780357033838
ST
Section I: STRATEGIC FOUNDATIONS
1. Strategic Management and Strategic Competitiveness
UV
2. The External Environment: Opportunities, Threats, Industry Competition,
and Competitor Analysis
3. The Internal Organization: Resources, Capabilities, Core Competencies,
and Competitive Advantages
IA
Section II: STRATEGY FORMULATION
4. Business-Level Strategy
_A
5. Competitive Rivalry and Competitive Dynamics
6. Corporate-Level Strategy
7. Merger and Acquisition Strategies
8. International Strategy
PP
9. Cooperative Strategy
Section III: STRATEGY GOVERNANCE & IMPLEMENTATION
10. Corporate Governance
RO
11. Organizational Structure and Controls
12. Strategic Leadership
13. Strategic Entrepreneurship
VE
D?
?
©MEDCONNOISSEUR
, :
Chapter 01: Strategic Management and Strategic Competitiveness
True / False
ST
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
a. True
b. False
ANSWER: True
UV
2. Alligator Enterprises has earned above-average returns since its founding five years ago. No other firm has challenged
Alligator in its particular market niche; therefore, the firm's owners can feel secure that Alligator has established a
competitive advantage.
a. True
b. False
IA
ANSWER: False
3. The goal of strategy implementation is to develop a permanent competitive advantage.
a. True
_A
b. False
ANSWER: False
4. Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result
from a particular investment.
PP
a. True
b. False
ANSWER: True
RO
5. The difference between average and above-average returns is that average returns are returns that an investor expects to
earn from an investment as compared to other investments with similar stock prices, while above-average returns are in
excess of expectations for similarly priced stocks.
a. True
b. False
ANSWER: False
VE
6. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar
amount of risk.
a. True
b. False
D?
ANSWER: True
7. Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure
the performance of the firms and determine their viability as an investment option is to examine financial metrics such as
returns on assets, and sales.
?
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
, :
8. To implement a firm’s strategies, the firm takes actions to enact each strategy with the intent of achieving strategic
competitiveness and above-average returns.
a. True
b. False
ANSWER: True
ST
9. Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in
the past.
a. True
UV
b. False
ANSWER: False
10. The two primary drivers of hypercompetition are the emergence of the global economy and technology.
a. True
b. False
IA
ANSWER: True
11. The rate of technology diffusion has increased significantly over the last two decades.
a. True
_A
b. False
ANSWER: True
12. RelTech is a firm in the electronics industry. It could protect its proprietary technology through patents. However, it
likely will not apply for patents to keep competitors from gaining access to the technological knowledge included in the
PP
patent application.
a. True
b. False
ANSWER: True
RO
13. Examples of incremental innovations include iPads, Wi-Fi, and the web browser.
a. True
b. False
ANSWER: False
VE
14. The rapid rate of technological diffusion has increased the competitive benefits of patents.
a. True
b. False
ANSWER: False
D?
15. Companies searching for opportunities in the global economy would likely conclude that the three leading European
economies of Germany, United Kingdom, and France would be good investments because they are predicted to continue
increasing in size.
a. True
b. False
?
ANSWER: False
16. Since the 1980s, the basis for competition has shifted from intangible resources to hard assets.
Copyright Cengage Learning. Powered by Cognero. Page 3
