WPC 480 KNOWLEDGE TEST & TOPIC
OUTLINE READY FOR EXAM 2026.
◍ Firms that outperform all their competitors must have a high
quality strategy. Answer:False
◍ It is not rare that a CEO of a large, public organizations will be
given a raise and/or bonus even though the profitability of the firm
has been negative for several years. What is the best explanation for
this? Answer:The firm has been growing rapidly in number of
locations and factories.
◍ Why are theories of how to achieve a competitive advantage not
about sufficient causes, but only necessary causes? Answer:The
causes of firm performance are not generalizable to all contexts.
◍ Firms are made more capable of achieving a competitive advantage
by having strong competitors so they must adapt and become stronger
in the market. Answer:False
◍ Accounting Value Answer:Based on historical data
◍ Shareholder Value Answer:Based on predictions on the future
,◍ Economic Value Answer:Based on predictions of the future
◍ Balanced Scorecard Answer:Based mostly on perceptions that can
change quickly
◍ Research into the causes of high performance in firms ought to
include studying firms that have very low performance. Answer:True
◍ It is difficult to learn much about how to succeed at strategy when
asking people to explain their successes after they have become
successful. Answer:True
◍ In the long run,the major ways of evaluating firm performance will
tend to be correlated with each other. So this suggests that for a
strategic analyst, it doesn't matter much what data on firm
performance is chosen. Answer:False
◍ The higher proportion of assets that are tangible, the more useful
accounting profit is as a measure of firm performance for a strategic
analyst. Answer:True
◍ PESTEL Answer:Political
Economic
Sociocultural
Technological
Ecological
, Legal
◍ Political Answer:Non-market strategies
◍ Economic Answer:Macro-economic conditions of a country or
region
◍ Sociocultural Answer:Cultures, norms, and value
◍ Technological Answer:Application of new knowledge
◍ Ecological Answer:Natural environment
◍ Legal Answer:Governing laws, mandates, regulations
◍ What is the primary value to a strategic analyst of doing a PESTEL
analysis? Answer:Identifies external conditions that can have an effect
on competitiveness.
◍ What is the most important information a strategic analyst can
obtain by doing an industry structure analysis? Answer:Who gets the
profits produced by industry members.
◍ The patent on a new technology has just expired. If all members of
an industry adopt the newly available technology, it will allow them
OUTLINE READY FOR EXAM 2026.
◍ Firms that outperform all their competitors must have a high
quality strategy. Answer:False
◍ It is not rare that a CEO of a large, public organizations will be
given a raise and/or bonus even though the profitability of the firm
has been negative for several years. What is the best explanation for
this? Answer:The firm has been growing rapidly in number of
locations and factories.
◍ Why are theories of how to achieve a competitive advantage not
about sufficient causes, but only necessary causes? Answer:The
causes of firm performance are not generalizable to all contexts.
◍ Firms are made more capable of achieving a competitive advantage
by having strong competitors so they must adapt and become stronger
in the market. Answer:False
◍ Accounting Value Answer:Based on historical data
◍ Shareholder Value Answer:Based on predictions on the future
,◍ Economic Value Answer:Based on predictions of the future
◍ Balanced Scorecard Answer:Based mostly on perceptions that can
change quickly
◍ Research into the causes of high performance in firms ought to
include studying firms that have very low performance. Answer:True
◍ It is difficult to learn much about how to succeed at strategy when
asking people to explain their successes after they have become
successful. Answer:True
◍ In the long run,the major ways of evaluating firm performance will
tend to be correlated with each other. So this suggests that for a
strategic analyst, it doesn't matter much what data on firm
performance is chosen. Answer:False
◍ The higher proportion of assets that are tangible, the more useful
accounting profit is as a measure of firm performance for a strategic
analyst. Answer:True
◍ PESTEL Answer:Political
Economic
Sociocultural
Technological
Ecological
, Legal
◍ Political Answer:Non-market strategies
◍ Economic Answer:Macro-economic conditions of a country or
region
◍ Sociocultural Answer:Cultures, norms, and value
◍ Technological Answer:Application of new knowledge
◍ Ecological Answer:Natural environment
◍ Legal Answer:Governing laws, mandates, regulations
◍ What is the primary value to a strategic analyst of doing a PESTEL
analysis? Answer:Identifies external conditions that can have an effect
on competitiveness.
◍ What is the most important information a strategic analyst can
obtain by doing an industry structure analysis? Answer:Who gets the
profits produced by industry members.
◍ The patent on a new technology has just expired. If all members of
an industry adopt the newly available technology, it will allow them
