Test Bank For
Strategic Management Theory & Cases An Integrated Approach, 14th Edition Charles W. L. Hill, Melissa A.
Schilling
Chapter 1-12
Chapter 01 - Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
True / False
1. Determining the technological and legal factors surrounding a company’s possible international expansion into India is
an example of an internal analysis.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-5 The Strategic Planning Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.05 - Identify the primary steps in a strategic planning process.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
2. A customer comment on an online forum about changing a company’s product placement in stores stimulates a change
in an existing business plan, which results in increased profits and positive outcomes and is an example of serendipity.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-6 Strategy as an Emergent Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.06 - Examine the criticisms of strategic planning.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
3. Using customer surveys, focus groups, and field research to drive business decisions is an example of the ivory tower
concept of planning.
a. True
b. False
ANSWER: False
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,POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-7 Strategic Planning in Practice
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.07 - Review the practice of strategic planning.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
4. Making a general business decision about where to manufacture a product based on the result of a single survey of one
small focus group is a cognitive bias known as illusion of control.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-8 Strategic Decision Making
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.08 - Explain strategic decision making and the cognitive biases that might
lead to poor strategic decisions.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
Multiple Choice
5. Which of the following statements about sustained competitive advantage is true?
a. It is unaffected by the strategies taken by the company.
b. Sustainability is achieved when it lasts for three months.
c. It exists only when the company's profitability is greater than the 10 highest grossing firms in the world.
d. It exists only when the company's profitability is greater than the average profitability and profit growth of its
rivals.
e. It is seldom affected by the business model of the company.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Competitive Advantage and a Company’s Business Model
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.03 - Explain what is meant by ―competitive advantage.‖
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
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,DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
6. Daryl works for Delta Corp. He is involved in the important decision-making processes of the company and is also
responsible for the overall performance of the company. In the context of strategic management, Daryl is most likely a:
a. line manager.
b. functional manager.
c. general manager.
d. production supervisor.
e. project manager.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 Strategic Managers
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.04 - Discuss the strategic role of managers at different levels within an
organization.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
7. Which of the following is a difference between a general manger and a functional manager?
a. A general manager has no responsibility to the performance of the individuals of the company while the
functional manager has an integral relationship with employee performance.
b. A general manager is responsible for overall performance while the functional manager is responsible for a
specific task or activity.
c. A functional manager has the profit-and-loss responsibility for a product while the general manager is strictly
dedicated to strategic planning.
d. A functional manager oversees the operation of an entire division while a general manager develops strategies
that help fulfill strategic objectives.
e. General managers are closer to the customer than functional managers, and their ideas may develop into
effective strategic plans for the business.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 Strategic Managers
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.04 - Discuss the strategic role of managers at different levels within an
organization.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
Copyright Cengage Learning. Powered by Cognero. Page 3
, 8. In the last five years, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC)
from $5 million to $25 million. The company was able to do this by expanding its product line to include a wider variety
of flavors. The $20 million increase in its ROIC over this period can be referred to as which of the following?
a. Shareholder value
b. Dividend payment
c. Profit growth
d. Profitability turnover
e. Risk capital
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 Strategic Leadership and Superior Performance
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.02 - Discuss leadership and its relationship to superior performance.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
9. Which of the following statements about nonprofit organizations is true?
a. They compete for scarce resources just as for-profit businesses do.
b. Their priority is to maximize shareholder value in order to attract risk capital.
c. Their managers do not need to develop careful strategies because making a profit is not the organization's goal.
d. They do not have to worry about exceeding budgets.
e. They seldom set performance goals like profit-seeking organizations.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Competitive Advantage and a Company’s Business Model
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.03 - Explain what is meant by ―competitive advantage.‖
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
10. Which of the following statements about strategic leadership is true?
a. It is the primary responsibility of the functional managers of an organization.
b. It does not consider the task of maximizing shareholder value.
c. It is involved with making decisions regarding how to create competitive advantage.
d. It is a concept that does not apply to multidivisional companies with several business units.
e. It is essentially about supervising workers at a manufacturing unit of an organization.
ANSWER: c
POINTS: 1
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Strategic Management Theory & Cases An Integrated Approach, 14th Edition Charles W. L. Hill, Melissa A.
Schilling
Chapter 1-12
Chapter 01 - Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
True / False
1. Determining the technological and legal factors surrounding a company’s possible international expansion into India is
an example of an internal analysis.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-5 The Strategic Planning Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.05 - Identify the primary steps in a strategic planning process.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
2. A customer comment on an online forum about changing a company’s product placement in stores stimulates a change
in an existing business plan, which results in increased profits and positive outcomes and is an example of serendipity.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-6 Strategy as an Emergent Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.06 - Examine the criticisms of strategic planning.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
3. Using customer surveys, focus groups, and field research to drive business decisions is an example of the ivory tower
concept of planning.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-7 Strategic Planning in Practice
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.07 - Review the practice of strategic planning.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
4. Making a general business decision about where to manufacture a product based on the result of a single survey of one
small focus group is a cognitive bias known as illusion of control.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-8 Strategic Decision Making
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.08 - Explain strategic decision making and the cognitive biases that might
lead to poor strategic decisions.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
Multiple Choice
5. Which of the following statements about sustained competitive advantage is true?
a. It is unaffected by the strategies taken by the company.
b. Sustainability is achieved when it lasts for three months.
c. It exists only when the company's profitability is greater than the 10 highest grossing firms in the world.
d. It exists only when the company's profitability is greater than the average profitability and profit growth of its
rivals.
e. It is seldom affected by the business model of the company.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Competitive Advantage and a Company’s Business Model
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.03 - Explain what is meant by ―competitive advantage.‖
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
Copyright Cengage Learning. Powered by Cognero. Page 2
,DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
6. Daryl works for Delta Corp. He is involved in the important decision-making processes of the company and is also
responsible for the overall performance of the company. In the context of strategic management, Daryl is most likely a:
a. line manager.
b. functional manager.
c. general manager.
d. production supervisor.
e. project manager.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 Strategic Managers
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.04 - Discuss the strategic role of managers at different levels within an
organization.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
7. Which of the following is a difference between a general manger and a functional manager?
a. A general manager has no responsibility to the performance of the individuals of the company while the
functional manager has an integral relationship with employee performance.
b. A general manager is responsible for overall performance while the functional manager is responsible for a
specific task or activity.
c. A functional manager has the profit-and-loss responsibility for a product while the general manager is strictly
dedicated to strategic planning.
d. A functional manager oversees the operation of an entire division while a general manager develops strategies
that help fulfill strategic objectives.
e. General managers are closer to the customer than functional managers, and their ideas may develop into
effective strategic plans for the business.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-4 Strategic Managers
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.04 - Discuss the strategic role of managers at different levels within an
organization.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Analyze
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
Copyright Cengage Learning. Powered by Cognero. Page 3
, 8. In the last five years, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC)
from $5 million to $25 million. The company was able to do this by expanding its product line to include a wider variety
of flavors. The $20 million increase in its ROIC over this period can be referred to as which of the following?
a. Shareholder value
b. Dividend payment
c. Profit growth
d. Profitability turnover
e. Risk capital
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 Strategic Leadership and Superior Performance
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.02 - Discuss leadership and its relationship to superior performance.
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
9. Which of the following statements about nonprofit organizations is true?
a. They compete for scarce resources just as for-profit businesses do.
b. Their priority is to maximize shareholder value in order to attract risk capital.
c. Their managers do not need to develop careful strategies because making a profit is not the organization's goal.
d. They do not have to worry about exceeding budgets.
e. They seldom set performance goals like profit-seeking organizations.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 Competitive Advantage and a Company’s Business Model
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HILL.24.01.03 - Explain what is meant by ―competitive advantage.‖
NATIONAL STANDARDS: United States - BUS PROG: Reflective Thinking
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 4:45 PM
DATE MODIFIED: 4/21/2023 11:36 AM
10. Which of the following statements about strategic leadership is true?
a. It is the primary responsibility of the functional managers of an organization.
b. It does not consider the task of maximizing shareholder value.
c. It is involved with making decisions regarding how to create competitive advantage.
d. It is a concept that does not apply to multidivisional companies with several business units.
e. It is essentially about supervising workers at a manufacturing unit of an organization.
ANSWER: c
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 4
