BAD 4013 MIDTERM EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Which of these could be a definition of strategic competitiveness? - Answers b. The ability of a firm to
outperform its rivals by forming and executing a strategy that creates value for its stakeholders.
The strategic management process is - Answers a. the way that businesses formulate initiatives that
will create superior value for customers and then implement them to out-perform competitors.
Which of these describes a company that has delivered above-average returns to its investors? -
Answers b. A tool manufacturer that announced it will increase its dividend payment - the highest
dividend amongst all of its industry competitors - for the upcoming quarter due to market share gains
in overseas markets.
Hypercompetition describes a competitive landscape where: - Answers b. the industry is constantly
changing with global competition and innovative competitors.
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product line
that is manufactured only in the company's U.S. plant. That product has experienced a steady
increase in its export sales to Europe over the last three years. The international sales director is
recommending that the company expand manufacturing capabilities at the European plant to include
this product line. Michael and his management team must consider whether to pursue this strategy.
This is: - Answers . a decision that would benefit from using the entire strategic management process.
Which of these is an example of a disruptive technology? - Answers b. The introduction of Global
Positioning System (GPS) technology, which is used in standalone and hand-held navigation tools,
smartphone apps, and in-car navigation systems
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
Which of these is an example of a company that did not respond strategically to technological
changes? - Answers c. Kodak revolutionized the automatic snapshot camera more than 100 years ago,
making photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this technology.
The industrial organization (I/O) model of above-average returns: - Answers a. puts emphasis on the
external environment, which plays a role in determining a company's ability to achieve above-average
returns.
Which of these represents a criticism of the industrial organization (I/O) model of above-average
returns? - Answers b. The model assumes that most firms operating in an industry have similar
valuable resources that are mobile across companies, which is not necessarily true.
Which of these is an example of the mobility of strategies and resources across firms in the mobile
network industry, one of the assumptions of the industrial organization (I/O) model of above-average
returns? - Answers d. The spread of 4G technology between Verizon, AT&T, and Sprint, so that the
high-speed network is available to nearly all mobile phone customers.
A multi-divisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to develop
its strategy. Which of these decisions is consistent with this model? - Answers c. The company's
research into a new railcar guideline that requires all tanker cars to be replaced or retrofitted over the
next five years leads its leaders to start a business that manufactures tanker cars to capitalize on the
new demand.
In the resource-based model of above-average returns, differences in company performance can be
attributed to: - Answers b. the unique capabilities and resources of the company.
In the resource-based model of above-average returns, a core competency is - Answers d. something
that gives a company an edge over the competition, something that the company possesses that its
competitors do not have, and something that is too difficult or costly for competitors to copy or
produce an alternative.
A local community arts nonprofit organization is seeking to expand its programming and is
considering putting just one new program in place this year. It may choose painting workshops, youth
summer camps, a musical performing arts series or classes for seniors. The organization's most
committed volunteer is a kindergarten art teacher who has offered to be the leader of whichever new
program the organization implements. If the nonprofit is utilizing the resource-based model of above-
average returns, it should expand its programming in the following way: - Answers b. Youth summer
camps because the organization should use the knowledge of its passionate volunteer to their
greatest advantage
, Which of these represents a core competency for Alibaba as presented in the opening case in the
chapter? - Answers . The company's diversification of web services tailored to the Chinese market
directly, which has resulted in transactions that account for more than 2 percent of China's GDP.
A mission statement can describe: - Answers b. what the company does in terms of its customers and
their needs and what core competencies it utilizes to meet those needs.
Below are several statements from companies. Which of these is a vision statement? - Answers c.
Habitat for Humanity: A world where everyone has a decent place to live.
A vision statement differs from a mission statement in that it: - Answers c. speaks in broad terms of
what the company ultimately would like to achieve.
Every organization has groups of people that it must establish and manage relationships with to be
successful. These groups include: - Answers d. All of these
Which of these represents a product market stakeholder: - Answers b. A local pipefitters union
dealing with a plumbing contractor
Capital market stakeholders are most satisfied when: - Answers a. a company's returns align with the
amount of risk they incurred by investing in a company or lending the company money.
Product market stakeholders often have very different priorities, but each can exert power and
influence over a company. Which of these correctly describes a way that a product market
stakeholder exerted its power to the potential detriment of a company? - Answers a. Protesters
swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision allowing it an
exemption from covering employees' contraceptives on religious grounds.
Organizational culture is: - Answers a. the complex set of ideologies, symbols and core values that are
shared throughout a firm that influence how the firm conducts business.
Strategic leaders: - Answers c. promote exploratory and exploitative learning as well as innovation.
Logan is an entrepreneur and president of his own company with a new software product that
manages benefits administration for large multinational corporations. His start-up company grew
quickly to a team of about 25. A new federal law recently passed by Congress will cause small
business owners to invest in software like his to manage employee healthcare. Logan announces that
the company will be investing in training for employees to better understand small business owners
and research and development to create a small business version of the software. This is an example
of: - Answers a. promoting exploratory and exploitative learning as well as innovation as a strategic
leader.
Christopher is the CEO of a company. Recently, he scheduled a meeting with a challenging objective -
to discuss with a team of his employees a project that is failing. It is costing a lot of investment in time
and money and does not appear to have any return on investment in sight. Which of these
approaches would demonstrate successful strategic leadership? - Answers d. He should start by
thanking the team for their hard work on the project so far but explain the company is no longer
pursuing it. He should clearly articulate his vision for the future of the company and the team and set
a meeting to debrief on the project.
Firms use the strategic management process to: - Answers d. meet the needs of its stakeholders and
achieve financial goals.
According to Hitt et al., which of these would be considered an important step in the ASP strategic
management process? - Answers d. Defining the company's corporate mission and major corporate
goals
Marquis is the international operations manager for an athletic clothing line. As part of his
responsibilities, he regularly tours the factories of the company's suppliers. He recently took a tour of
one of the most efficient plants that delivers low-cost clothing. This gives his company a greater profit
margin. However, on the tour, he noticed an 8-year-old child operating one of the machines. Which of
these best describes how Marquis should report back to his CEO about the plant tour? - Answers b.
Marquis should bring this issue to the attention of the CEO and other top leadership immediately. He
has a personal, ethical objection to child labor and believes that it is also inconsistent with the
company's core values.
Which of these could be a part of the analysis stage of the strategic management process? - Answers
b. A review of a company's competitive landscape, identifying competitors, naming their
differentiations and detailing a profile of those competitors' customers
What is the set of factors that directly influences a firm and its competitive actions and responses
within the industry? - Answers b. not all strategies will work for all firms; successful strategies must be
aligned with a company's strengths.
Which of these could be a definition of strategic competitiveness? - Answers b. The ability of a firm to
outperform its rivals by forming and executing a strategy that creates value for its stakeholders.
The strategic management process is - Answers a. the way that businesses formulate initiatives that
will create superior value for customers and then implement them to out-perform competitors.
Which of these describes a company that has delivered above-average returns to its investors? -
Answers b. A tool manufacturer that announced it will increase its dividend payment - the highest
dividend amongst all of its industry competitors - for the upcoming quarter due to market share gains
in overseas markets.
Hypercompetition describes a competitive landscape where: - Answers b. the industry is constantly
changing with global competition and innovative competitors.
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product line
that is manufactured only in the company's U.S. plant. That product has experienced a steady
increase in its export sales to Europe over the last three years. The international sales director is
recommending that the company expand manufacturing capabilities at the European plant to include
this product line. Michael and his management team must consider whether to pursue this strategy.
This is: - Answers . a decision that would benefit from using the entire strategic management process.
Which of these is an example of a disruptive technology? - Answers b. The introduction of Global
Positioning System (GPS) technology, which is used in standalone and hand-held navigation tools,
smartphone apps, and in-car navigation systems
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
Which of these is an example of a company that did not respond strategically to technological
changes? - Answers c. Kodak revolutionized the automatic snapshot camera more than 100 years ago,
making photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this technology.
The industrial organization (I/O) model of above-average returns: - Answers a. puts emphasis on the
external environment, which plays a role in determining a company's ability to achieve above-average
returns.
Which of these represents a criticism of the industrial organization (I/O) model of above-average
returns? - Answers b. The model assumes that most firms operating in an industry have similar
valuable resources that are mobile across companies, which is not necessarily true.
Which of these is an example of the mobility of strategies and resources across firms in the mobile
network industry, one of the assumptions of the industrial organization (I/O) model of above-average
returns? - Answers d. The spread of 4G technology between Verizon, AT&T, and Sprint, so that the
high-speed network is available to nearly all mobile phone customers.
A multi-divisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to develop
its strategy. Which of these decisions is consistent with this model? - Answers c. The company's
research into a new railcar guideline that requires all tanker cars to be replaced or retrofitted over the
next five years leads its leaders to start a business that manufactures tanker cars to capitalize on the
new demand.
In the resource-based model of above-average returns, differences in company performance can be
attributed to: - Answers b. the unique capabilities and resources of the company.
In the resource-based model of above-average returns, a core competency is - Answers d. something
that gives a company an edge over the competition, something that the company possesses that its
competitors do not have, and something that is too difficult or costly for competitors to copy or
produce an alternative.
A local community arts nonprofit organization is seeking to expand its programming and is
considering putting just one new program in place this year. It may choose painting workshops, youth
summer camps, a musical performing arts series or classes for seniors. The organization's most
committed volunteer is a kindergarten art teacher who has offered to be the leader of whichever new
program the organization implements. If the nonprofit is utilizing the resource-based model of above-
average returns, it should expand its programming in the following way: - Answers b. Youth summer
camps because the organization should use the knowledge of its passionate volunteer to their
greatest advantage
, Which of these represents a core competency for Alibaba as presented in the opening case in the
chapter? - Answers . The company's diversification of web services tailored to the Chinese market
directly, which has resulted in transactions that account for more than 2 percent of China's GDP.
A mission statement can describe: - Answers b. what the company does in terms of its customers and
their needs and what core competencies it utilizes to meet those needs.
Below are several statements from companies. Which of these is a vision statement? - Answers c.
Habitat for Humanity: A world where everyone has a decent place to live.
A vision statement differs from a mission statement in that it: - Answers c. speaks in broad terms of
what the company ultimately would like to achieve.
Every organization has groups of people that it must establish and manage relationships with to be
successful. These groups include: - Answers d. All of these
Which of these represents a product market stakeholder: - Answers b. A local pipefitters union
dealing with a plumbing contractor
Capital market stakeholders are most satisfied when: - Answers a. a company's returns align with the
amount of risk they incurred by investing in a company or lending the company money.
Product market stakeholders often have very different priorities, but each can exert power and
influence over a company. Which of these correctly describes a way that a product market
stakeholder exerted its power to the potential detriment of a company? - Answers a. Protesters
swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision allowing it an
exemption from covering employees' contraceptives on religious grounds.
Organizational culture is: - Answers a. the complex set of ideologies, symbols and core values that are
shared throughout a firm that influence how the firm conducts business.
Strategic leaders: - Answers c. promote exploratory and exploitative learning as well as innovation.
Logan is an entrepreneur and president of his own company with a new software product that
manages benefits administration for large multinational corporations. His start-up company grew
quickly to a team of about 25. A new federal law recently passed by Congress will cause small
business owners to invest in software like his to manage employee healthcare. Logan announces that
the company will be investing in training for employees to better understand small business owners
and research and development to create a small business version of the software. This is an example
of: - Answers a. promoting exploratory and exploitative learning as well as innovation as a strategic
leader.
Christopher is the CEO of a company. Recently, he scheduled a meeting with a challenging objective -
to discuss with a team of his employees a project that is failing. It is costing a lot of investment in time
and money and does not appear to have any return on investment in sight. Which of these
approaches would demonstrate successful strategic leadership? - Answers d. He should start by
thanking the team for their hard work on the project so far but explain the company is no longer
pursuing it. He should clearly articulate his vision for the future of the company and the team and set
a meeting to debrief on the project.
Firms use the strategic management process to: - Answers d. meet the needs of its stakeholders and
achieve financial goals.
According to Hitt et al., which of these would be considered an important step in the ASP strategic
management process? - Answers d. Defining the company's corporate mission and major corporate
goals
Marquis is the international operations manager for an athletic clothing line. As part of his
responsibilities, he regularly tours the factories of the company's suppliers. He recently took a tour of
one of the most efficient plants that delivers low-cost clothing. This gives his company a greater profit
margin. However, on the tour, he noticed an 8-year-old child operating one of the machines. Which of
these best describes how Marquis should report back to his CEO about the plant tour? - Answers b.
Marquis should bring this issue to the attention of the CEO and other top leadership immediately. He
has a personal, ethical objection to child labor and believes that it is also inconsistent with the
company's core values.
Which of these could be a part of the analysis stage of the strategic management process? - Answers
b. A review of a company's competitive landscape, identifying competitors, naming their
differentiations and detailing a profile of those competitors' customers
What is the set of factors that directly influences a firm and its competitive actions and responses
within the industry? - Answers b. not all strategies will work for all firms; successful strategies must be
aligned with a company's strengths.
