Test bank for
STRATEGICMANAGEMENT 5THEDITION
J
Rothaermel frank
,Chapter 1-12 Answersareattheendofeachchapter
Chapter 1
Studentname:
1) A Good Strategy Allows A Firm To Achievesuperior Performance And Sustainable
Competitive Ad Vantage Without Regardjto Thejexternal Environment.
⊚ True
⊚ False
2) Thejfollowing Statement By The Chief Executive Of Megafilms Movie Studio Should Not
Be Us Ed As A Strategy: “Wejwill Producejthe Greatestjfilms Of The 21st Century.”
⊚ True
⊚ False
3) Thejthree Tasks Of The Afi Strategy Framework Arejto Assemble A Prototype,Jfindja Buyer,
And Inc Orporate Feedback.
⊚ True
⊚ False
4) Questions Asked During The Strategy Analysisjstage Of The Afi Frameworkjshouldjinclude
“Wh At Effects Do Forces In The External Environment Havejon The Firm’s Potential To
Gain And Sustainj A Competitive Advantage?”
⊚ True
⊚ False
,5) Once A Strategy Has Been Formulated And Implemented, It Is Important Thatjthe Firm Sticks
To Itjnoj Matter What Happens.
⊚ True
⊚ False
6) Because They Are A Crucial Component Of A Firm’s Success, Customers Are Considered
Internal Sta Keholders.
⊚ True
⊚ False
7) A Firm Isjrequired By Society And Its Shareholders To Meet Its Ethical And
Philanthropic Res Ponsibilities.
⊚ True
⊚ False
8) Stakeholder Impact Analysisjprovidesjadecision Tool That Helps Strategic Leaders
Recognizejthe Ne Eds Of Different Stakeholders.
⊚ True
⊚ False
9) Juan Wants Tojopen His Own Hot Dogjrestaurant But Doesn’t Know Anything About Business.
He Ne Eds Help Determiningjwho His Competitionjis, How He Should Craft His Strategy To
Compete And H Ow He’ll Implement His Strategy To Achieve A Competitivejadvantage. He’s
Hired You Tojhelp Him Get Started. As A Result, You Will Probably Use Which Of The
Following?
A) Afi Strategy Framework
B) Red Queen Effect
C) Competitivejbenchmarking
D) Stakeholder Impact Analysis
, 10) Roberta Is Interested In The Concept Of Strategy Andjdecides To Createjher Own. As A
Result, Ro Berta Saysjthat Her Strategy Is To Focus On Competitivejbenchmarking To
Achieve Competitive Advantage. Which Isjthe Best Evaluation Of Roberta’s Statement?
A) Roberta’s Strategy Is Clear, But She Should Providejmore Detail.
B) Roberta’s Strategy Reveals A Clear Strategic Positionjandjtradeoff, So She
Shouldjpr Oceed.
C) Roberta Should Reevaluate Her Statement Becausejit Fails To Mention Morejthan
Onejstr Ategy.
D) Roberta Shouldjreevaluatejher Statement Because It Fails To Meetjthe Principles Of
What Ajs Trategy Shouldjbe.
11) Tony’s Pizzajshop Isjable To Netj$10,000 A Week; Thisjmakes The Shopjprofitable. Its
Number On E Competitor, Leo’s Pies, Is Also Profitable, Nettingj$12,000ja Week. Lil
Anthony’s Pizza Palac E Nets $13,000ja Week. Since Tony’s Pizzajshop Is Profitable,
Wejcan Concludejthatjit Has A Co Mpetitive Advantage In Itsjindustry.
A) True—Competitive Advantage Is Achievedjthrough Profitability Alone.
B) True—Competitive Advantagejis Achieved Sincejtony Has Ajpositive Net Income.
C) False—
Competitive Advantageis Only Achieved By Generating Above Averagejreturns,
Relative T O Competition.
D) False—
Tony More Than Likely Hasjajsustained Competitive Advantage Sincejhe’s Beenjin
Busines S Longer.
12) Bill’sjauto & Airplane Repair Shop Isjable To Generateja Positive Netjincomejof $10,000 A
We Ek, Which Isjabout The Samejas The Income Of A Close Competitor. As A Result, We
Can Conclud E That The Two Businessesjalso Haveja Competitive Parity Injthe Industry.
A) Correct—Competitive Advantagejis Achieved Through Profitability Alone.
B) Correct—
Competitive Advantage Is Achieved Since Bill’s Autoj& Airplane Repair Shopjhas A
Positi Ve Net Income.
C) Correct—Competitive Parity Is Ajperformance Of Two Or More Firms At Thejsame Level.
D) Incorrect—
Bill’s Autoj& Airplane Repair Shop More Than Likely Has A Sustained
Competitive A Dvantage Because The Business Isjdiversified.
STRATEGICMANAGEMENT 5THEDITION
J
Rothaermel frank
,Chapter 1-12 Answersareattheendofeachchapter
Chapter 1
Studentname:
1) A Good Strategy Allows A Firm To Achievesuperior Performance And Sustainable
Competitive Ad Vantage Without Regardjto Thejexternal Environment.
⊚ True
⊚ False
2) Thejfollowing Statement By The Chief Executive Of Megafilms Movie Studio Should Not
Be Us Ed As A Strategy: “Wejwill Producejthe Greatestjfilms Of The 21st Century.”
⊚ True
⊚ False
3) Thejthree Tasks Of The Afi Strategy Framework Arejto Assemble A Prototype,Jfindja Buyer,
And Inc Orporate Feedback.
⊚ True
⊚ False
4) Questions Asked During The Strategy Analysisjstage Of The Afi Frameworkjshouldjinclude
“Wh At Effects Do Forces In The External Environment Havejon The Firm’s Potential To
Gain And Sustainj A Competitive Advantage?”
⊚ True
⊚ False
,5) Once A Strategy Has Been Formulated And Implemented, It Is Important Thatjthe Firm Sticks
To Itjnoj Matter What Happens.
⊚ True
⊚ False
6) Because They Are A Crucial Component Of A Firm’s Success, Customers Are Considered
Internal Sta Keholders.
⊚ True
⊚ False
7) A Firm Isjrequired By Society And Its Shareholders To Meet Its Ethical And
Philanthropic Res Ponsibilities.
⊚ True
⊚ False
8) Stakeholder Impact Analysisjprovidesjadecision Tool That Helps Strategic Leaders
Recognizejthe Ne Eds Of Different Stakeholders.
⊚ True
⊚ False
9) Juan Wants Tojopen His Own Hot Dogjrestaurant But Doesn’t Know Anything About Business.
He Ne Eds Help Determiningjwho His Competitionjis, How He Should Craft His Strategy To
Compete And H Ow He’ll Implement His Strategy To Achieve A Competitivejadvantage. He’s
Hired You Tojhelp Him Get Started. As A Result, You Will Probably Use Which Of The
Following?
A) Afi Strategy Framework
B) Red Queen Effect
C) Competitivejbenchmarking
D) Stakeholder Impact Analysis
, 10) Roberta Is Interested In The Concept Of Strategy Andjdecides To Createjher Own. As A
Result, Ro Berta Saysjthat Her Strategy Is To Focus On Competitivejbenchmarking To
Achieve Competitive Advantage. Which Isjthe Best Evaluation Of Roberta’s Statement?
A) Roberta’s Strategy Is Clear, But She Should Providejmore Detail.
B) Roberta’s Strategy Reveals A Clear Strategic Positionjandjtradeoff, So She
Shouldjpr Oceed.
C) Roberta Should Reevaluate Her Statement Becausejit Fails To Mention Morejthan
Onejstr Ategy.
D) Roberta Shouldjreevaluatejher Statement Because It Fails To Meetjthe Principles Of
What Ajs Trategy Shouldjbe.
11) Tony’s Pizzajshop Isjable To Netj$10,000 A Week; Thisjmakes The Shopjprofitable. Its
Number On E Competitor, Leo’s Pies, Is Also Profitable, Nettingj$12,000ja Week. Lil
Anthony’s Pizza Palac E Nets $13,000ja Week. Since Tony’s Pizzajshop Is Profitable,
Wejcan Concludejthatjit Has A Co Mpetitive Advantage In Itsjindustry.
A) True—Competitive Advantage Is Achievedjthrough Profitability Alone.
B) True—Competitive Advantagejis Achieved Sincejtony Has Ajpositive Net Income.
C) False—
Competitive Advantageis Only Achieved By Generating Above Averagejreturns,
Relative T O Competition.
D) False—
Tony More Than Likely Hasjajsustained Competitive Advantage Sincejhe’s Beenjin
Busines S Longer.
12) Bill’sjauto & Airplane Repair Shop Isjable To Generateja Positive Netjincomejof $10,000 A
We Ek, Which Isjabout The Samejas The Income Of A Close Competitor. As A Result, We
Can Conclud E That The Two Businessesjalso Haveja Competitive Parity Injthe Industry.
A) Correct—Competitive Advantagejis Achieved Through Profitability Alone.
B) Correct—
Competitive Advantage Is Achieved Since Bill’s Autoj& Airplane Repair Shopjhas A
Positi Ve Net Income.
C) Correct—Competitive Parity Is Ajperformance Of Two Or More Firms At Thejsame Level.
D) Incorrect—
Bill’s Autoj& Airplane Repair Shop More Than Likely Has A Sustained
Competitive A Dvantage Because The Business Isjdiversified.
