Test Bank to accompany Dyer: Strategic Management 4th Edition
Package Title: Chapter 1, Testbank
Course Title: Dyer, Strategic Management 4th Edition
Chapter Number 1: What Is Business Strategy?
Question type: Multiple Choice
1) ________ can be best defined as when an organization generates higher profits
compared to its rivals.
a) Client advantage
b) Competitive advantage
c) Employer advantage
d) Unique value
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
2) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its
competitors. In order to overcome this, the employees of Gems Corp. decide to work
harder to provide unique value to customers and increase the sales of the company. After
a year, it is able to make more profits than its competitors. This scenario best illustrates
________.
a) client advantage
b) internal analysis
c) external analysis
d) competitive advantage
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Copyright @ 2022 by John Wiley & Sons, Inc.
,Test Bank to accompany Dyer: Strategic Management 4th Edition
Bloomcode: Application
Standard 1: AACSB || Analytic
3) The industry and geographic area that a company competes in, is referred to as its
________.
a) niche
b) business
c) segment
d) market
Answer: d
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
4) Adia and Ali are two business partners who want to set up a company that sells
imported sports gear and equipment. In order to make sure that the company makes and
retains profit, they must choose an area that is close to where their products have the
highest demand. This area should allow them consistently to make profit. In this scenario,
Adia and Ali are looking for a ________.
a) market
b) strategy
c) cost advantage
d) mission
Answer: a
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
Copyright @ 2022 by John Wiley & Sons, Inc.
,Test Bank to accompany Dyer: Strategic Management 4th Edition
5) ________ can be best defined as the reason a firm wins with customers or the value
proposition it offers to customers, such as a low-cost advantage or differentiation
advantage.
a) Switching costs
b) Unique value
c) Complementary products
d) SWOT analysis
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
6) The employees of Flamingo Inc., a greeting card company, focus on providing
unmatched customer satisfaction. Unlike its competitors, the employees of Flamingo take
the time to listen to the needs of individual customers and design custom-made cards
upon request. The customers of Flamingo state that the company provides a large variety
of affordable products to choose from. The company has won many awards for providing
complete customer satisfaction. In this scenario, which of the following does Flamingo
Inc. provide to its customers?
a) Backward integration
b) Switching costs
c) Complementary products
d) Unique value
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
Copyright @ 2022 by John Wiley & Sons, Inc.
, Test Bank to accompany Dyer: Strategic Management 4th Edition
7) Returns in excess of what an investor expects from other investments with a similar
amount of risk are referred to as ________.
a) unique value
b) complimentary value
c) above-average profits
d) above-average losses
Answer: c
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
8) The Mykari Publishing House invested in buying high-end machinery that allowed its
newspapers to be printed at twice the speed of average printing machines. The executives
of the company stated that this would increase the company’s profit margin by 12% as
opposed to the usual 7 to 8% that it makes annually. When the finances of the company
were tallied this year, it was found that the profits increased to about 19%. This scenario
best illustrates ________.
a) return of equity
b) above-average profits
c) complimentary value
d) unique value
Answer: b
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
9) Which of the following is true of competitive advantage?
Copyright @ 2022 by John Wiley & Sons, Inc.
Package Title: Chapter 1, Testbank
Course Title: Dyer, Strategic Management 4th Edition
Chapter Number 1: What Is Business Strategy?
Question type: Multiple Choice
1) ________ can be best defined as when an organization generates higher profits
compared to its rivals.
a) Client advantage
b) Competitive advantage
c) Employer advantage
d) Unique value
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
2) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its
competitors. In order to overcome this, the employees of Gems Corp. decide to work
harder to provide unique value to customers and increase the sales of the company. After
a year, it is able to make more profits than its competitors. This scenario best illustrates
________.
a) client advantage
b) internal analysis
c) external analysis
d) competitive advantage
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Copyright @ 2022 by John Wiley & Sons, Inc.
,Test Bank to accompany Dyer: Strategic Management 4th Edition
Bloomcode: Application
Standard 1: AACSB || Analytic
3) The industry and geographic area that a company competes in, is referred to as its
________.
a) niche
b) business
c) segment
d) market
Answer: d
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1:1: AACSB || Analytic
4) Adia and Ali are two business partners who want to set up a company that sells
imported sports gear and equipment. In order to make sure that the company makes and
retains profit, they must choose an area that is close to where their products have the
highest demand. This area should allow them consistently to make profit. In this scenario,
Adia and Ali are looking for a ________.
a) market
b) strategy
c) cost advantage
d) mission
Answer: a
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
Copyright @ 2022 by John Wiley & Sons, Inc.
,Test Bank to accompany Dyer: Strategic Management 4th Edition
5) ________ can be best defined as the reason a firm wins with customers or the value
proposition it offers to customers, such as a low-cost advantage or differentiation
advantage.
a) Switching costs
b) Unique value
c) Complementary products
d) SWOT analysis
Answer: b
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
6) The employees of Flamingo Inc., a greeting card company, focus on providing
unmatched customer satisfaction. Unlike its competitors, the employees of Flamingo take
the time to listen to the needs of individual customers and design custom-made cards
upon request. The customers of Flamingo state that the company provides a large variety
of affordable products to choose from. The company has won many awards for providing
complete customer satisfaction. In this scenario, which of the following does Flamingo
Inc. provide to its customers?
a) Backward integration
b) Switching costs
c) Complementary products
d) Unique value
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
Copyright @ 2022 by John Wiley & Sons, Inc.
, Test Bank to accompany Dyer: Strategic Management 4th Edition
7) Returns in excess of what an investor expects from other investments with a similar
amount of risk are referred to as ________.
a) unique value
b) complimentary value
c) above-average profits
d) above-average losses
Answer: c
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
8) The Mykari Publishing House invested in buying high-end machinery that allowed its
newspapers to be printed at twice the speed of average printing machines. The executives
of the company stated that this would increase the company’s profit margin by 12% as
opposed to the usual 7 to 8% that it makes annually. When the finances of the company
were tallied this year, it was found that the profits increased to about 19%. This scenario
best illustrates ________.
a) return of equity
b) above-average profits
c) complimentary value
d) unique value
Answer: b
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
9) Which of the following is true of competitive advantage?
Copyright @ 2022 by John Wiley & Sons, Inc.
