Strategic Management, 6th Edition 2025 By Rothaermel
Frank, Verified Chapters 1 - 12, Actual Exam Questions,
Complete Newest Version | Already Graded A+.
CHAPTER 1
A good strategy allows a firm to achieve superior performance and sustainable competitive advantage without
regard to the external environment.
✓ False
The following statement by the chief executive of Mega Films movie studio should not be used as a strategy:
“We will produce the greatest films of the 21st century.”
✓ True
The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate
feedback.
✓ False
Questions asked during the strategy analysis stage of the AFI framework should include "What effects do forces
in the external environment have on the firm's potential to gain and sustain a competitive advantage?"
✓ True
Once a strategy has been formulated and implemented, it is important that the firm sticks to it no matter what
happens.
✓ False
Because they are a crucial component of a firm's success, customers are considered internal stakeholders.
✓ False
A firm is required by society and its shareholders to meet its ethical and philanthropic responsibilities.
✓ False
Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the needs of
different stakeholders.
✓ True
Juan wants to open his own hot dog restaurant but doesn't know anything about business. He needs help
determining who his competition is, how he should craft his strategy to compete and how he'll implement his
1|Page
,strategy to achieve a competitive advantage. He's hired you to help him get started. As a result, you will
probably use which of the following?
✓ AFI Strategy Framework
Roberta is interested in the concept of strategy and decides to create her own. As a result, Roberta says that
her strategy is to focus on competitive benchmarking to achieve competitive advantage. Which is the best
evaluation of Roberta's statement?
✓ Roberta should reevaluate her statement because it fails to meet the principles of what a strategy
should be.
Executives whose visions and decisions help their companies achieve competitive advantage can be considered
strategic leaders.
✓ True
Strategic leaders spend the majority of their time working alone to devise new strategies.
✓ False
The upper-echelons theory favors the idea that effective strategic leadership results from innate abilities rather
than learning.
✓ False
It is helpful to break down strategy formulation and strategy implementation into five distinct areas.
✓ True
This is an example of one of the few successful tech companies using a top-down strategic planning process.
✓ Apple
A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for
an existing product, is known as serendipity.
✓ True
A firm's resource-allocation process (RAP) has very little effect on its realized strategy.
✓ False
Core values provide ethical guidelines for how individual employees will behave.
✓ True
Managers should create two sets of core values: one for employees and one for themselves.
✓ False
2|Page
,System 2 thinking is fast, unconscious, and automatic; it is the brain's default mode.
✓ False
The stronger the five forces, the lower the industry's ability to earn above-average profits and gain and sustain
a competitive advantage.
✓ True
A key feature of the Five Forces Model is that competition is viewed more broadly.
✓ True
The risk that potential competitors will enter an industry
✓ Lowers industry profit potential
Office Homie Inc. wants to become the largest and most profitable office chair supplier in a three-state area. To
do this, Office Homie should try to create the largest possible difference between the value that its office chairs
create and the expense that the company must spend to produce the chairs.
✓ True
A small used tire shop faces significant potential competition because of the low capital requirements
compared with business environments such as universities and laboratories.
✓ True
Incumbent firms are unwilling to lower prices, pay more taxes, or retaliate when a new entrant joins an
industry.
✓ False
Because competitors in oligopolistic industries are so independent, it is not very important for strategic leaders
in those firms to monitor and respond to changes their competitors make.
✓ False
A video-streaming service provider such as Amazon Prime is a complement to a manufacturer of streaming
video devices such as Roku and the Amazon Firestick.
✓ True
Changing the name from Kentucky Fried Chicken to KFC is a an example of which force
✓ Sociocultural
When smartphone manufacturers began including cameras and voice recorders in their products, that was an
example of switching costs.
3|Page
, ✓ False
In the resource-based view, resources fall into these categories:
✓ Tangible and intangible
A firm can gain and sustain a competitive advantage when it has resources that satisfy at least two of the VRIO
criteria
✓ False
[Activity1] activities add firm value directly, while [Activity2] activities add firm value indirectly
✓ Primary, support
Which metaphor describes the Dynamic Capabilities Perspective
✓ Bathtub
This company is an example of strategic activity systems:
✓ Vanguard
The idea that resources are "sticky," and do not move easily from firm to firm is called:
✓ Immobility
Southwest Airlines is an excellent example of resource heterogeneity and immobility.
✓ True
Core competencies allow firms to _____ their rivals
✓ differentiate from
The Japanese company that exemplified leveraging core competencies is:
✓ Honda
Internal analysis should be done through the lens of:
✓ VRIO
One advantage of the balanced scorecard is that it translates vision into measurable goals.
✓ True
Which of the following is NOT an example of a traditional framework to measure and assess firm performance:
✓ Opportunity cost
The two key components of economic value creation are
4|Page
Frank, Verified Chapters 1 - 12, Actual Exam Questions,
Complete Newest Version | Already Graded A+.
CHAPTER 1
A good strategy allows a firm to achieve superior performance and sustainable competitive advantage without
regard to the external environment.
✓ False
The following statement by the chief executive of Mega Films movie studio should not be used as a strategy:
“We will produce the greatest films of the 21st century.”
✓ True
The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and Incorporate
feedback.
✓ False
Questions asked during the strategy analysis stage of the AFI framework should include "What effects do forces
in the external environment have on the firm's potential to gain and sustain a competitive advantage?"
✓ True
Once a strategy has been formulated and implemented, it is important that the firm sticks to it no matter what
happens.
✓ False
Because they are a crucial component of a firm's success, customers are considered internal stakeholders.
✓ False
A firm is required by society and its shareholders to meet its ethical and philanthropic responsibilities.
✓ False
Stakeholder impact analysis provides a decision tool that helps strategic leaders recognize the needs of
different stakeholders.
✓ True
Juan wants to open his own hot dog restaurant but doesn't know anything about business. He needs help
determining who his competition is, how he should craft his strategy to compete and how he'll implement his
1|Page
,strategy to achieve a competitive advantage. He's hired you to help him get started. As a result, you will
probably use which of the following?
✓ AFI Strategy Framework
Roberta is interested in the concept of strategy and decides to create her own. As a result, Roberta says that
her strategy is to focus on competitive benchmarking to achieve competitive advantage. Which is the best
evaluation of Roberta's statement?
✓ Roberta should reevaluate her statement because it fails to meet the principles of what a strategy
should be.
Executives whose visions and decisions help their companies achieve competitive advantage can be considered
strategic leaders.
✓ True
Strategic leaders spend the majority of their time working alone to devise new strategies.
✓ False
The upper-echelons theory favors the idea that effective strategic leadership results from innate abilities rather
than learning.
✓ False
It is helpful to break down strategy formulation and strategy implementation into five distinct areas.
✓ True
This is an example of one of the few successful tech companies using a top-down strategic planning process.
✓ Apple
A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for
an existing product, is known as serendipity.
✓ True
A firm's resource-allocation process (RAP) has very little effect on its realized strategy.
✓ False
Core values provide ethical guidelines for how individual employees will behave.
✓ True
Managers should create two sets of core values: one for employees and one for themselves.
✓ False
2|Page
,System 2 thinking is fast, unconscious, and automatic; it is the brain's default mode.
✓ False
The stronger the five forces, the lower the industry's ability to earn above-average profits and gain and sustain
a competitive advantage.
✓ True
A key feature of the Five Forces Model is that competition is viewed more broadly.
✓ True
The risk that potential competitors will enter an industry
✓ Lowers industry profit potential
Office Homie Inc. wants to become the largest and most profitable office chair supplier in a three-state area. To
do this, Office Homie should try to create the largest possible difference between the value that its office chairs
create and the expense that the company must spend to produce the chairs.
✓ True
A small used tire shop faces significant potential competition because of the low capital requirements
compared with business environments such as universities and laboratories.
✓ True
Incumbent firms are unwilling to lower prices, pay more taxes, or retaliate when a new entrant joins an
industry.
✓ False
Because competitors in oligopolistic industries are so independent, it is not very important for strategic leaders
in those firms to monitor and respond to changes their competitors make.
✓ False
A video-streaming service provider such as Amazon Prime is a complement to a manufacturer of streaming
video devices such as Roku and the Amazon Firestick.
✓ True
Changing the name from Kentucky Fried Chicken to KFC is a an example of which force
✓ Sociocultural
When smartphone manufacturers began including cameras and voice recorders in their products, that was an
example of switching costs.
3|Page
, ✓ False
In the resource-based view, resources fall into these categories:
✓ Tangible and intangible
A firm can gain and sustain a competitive advantage when it has resources that satisfy at least two of the VRIO
criteria
✓ False
[Activity1] activities add firm value directly, while [Activity2] activities add firm value indirectly
✓ Primary, support
Which metaphor describes the Dynamic Capabilities Perspective
✓ Bathtub
This company is an example of strategic activity systems:
✓ Vanguard
The idea that resources are "sticky," and do not move easily from firm to firm is called:
✓ Immobility
Southwest Airlines is an excellent example of resource heterogeneity and immobility.
✓ True
Core competencies allow firms to _____ their rivals
✓ differentiate from
The Japanese company that exemplified leveraging core competencies is:
✓ Honda
Internal analysis should be done through the lens of:
✓ VRIO
One advantage of the balanced scorecard is that it translates vision into measurable goals.
✓ True
Which of the following is NOT an example of a traditional framework to measure and assess firm performance:
✓ Opportunity cost
The two key components of economic value creation are
4|Page
