Prepared by Ahmad El Rayes, MSc, MBA
University of Washington DC
Strategic Management: A Competitive Advantage Approach, 14e (David)
The Internal Assessment
1) Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated
by competitors.
Answer: FALSE
Diff: 1 Page Ref: 95
Objective: 4.09 Explain cost/benefit analysis, value chain analysis, and benchmarking as
strategic-management tools.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
2) The process of performing an internal audit, compared to the external audit, provides more
opportunity for participants to understand how their jobs, departments and divisions fit into the
whole organization.
Answer: TRUE
Diff: 2 Page Ref: 96
Objective: 4.01 Describe how to perform an internal strategic-management audit.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
3) An internal audit task force of managers could be charged with determining a specific number
(usually 10 to 20) of the most important strengths and weaknesses.
Answer: TRUE
Diff: 2 Page Ref: 96
Objective: 4.01 Describe how to perform an internal strategic-management audit.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
4) Proponents of the resource-based view argue that external factors are more important than
internal factors for a firm in achieving and sustaining competitive advantage.
Answer: FALSE
Diff: 3 Page Ref: 97
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
5) The basic premise of the research-based view is that the mix, type, amount, and nature of a
firm's internal resources should be considered first and foremost in devising strategies that can
lead to sustainable competitive advantage.
Answer: TRUE
Diff: 2 Page Ref: 97-98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
6) The subtle, elusive and largely unconscious forces that shape the workplace are captured by
the organizational culture.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
,Learning Outcome: Describe tools and models for assessing a firm's internal environment
7) Cultural products include values, beliefs, stories, and language.
Answer: TRUE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
8) Metaphors are handed-down narratives of some wonderful event that are based on history but
have been embellished with fictional detail.
Answer: FALSE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
9) A ritual is a standardized, detailed set of techniques and behaviors used to manage anxieties.
Answer: TRUE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
10) For a resource to be valuable, it must be either rare, hard to imitate, or not easily sustainable.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
11) Linkages between a firm's culture and strategies often determine success.
Answer: TRUE
Diff: 1 Page Ref: 100
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
12) Resources that are common are never considered valuable.
Answer: FALSE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
13) The RBV theory asserts that it is advantageous for a firm to pursue a strategy that is not
currently being implemented by any competing firm.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
,14) An organization's culture compares to an individual's personality in the sense that no two
organizations have the same culture and no two individuals have the same personality.
Answer: TRUE
Diff: 1 Page Ref: 98
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
15) At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very
informal.
Answer: FALSE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
16) Established companies are coming to realize that their next generation of potential customers
spends more time online than watching TV.
Answer: TRUE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
17) While interesting, organizational culture does not significantly affect business decisions.
Answer: FALSE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
18) Allocating resources is one of the five basic activities (functions) performed by managers.
Answer: FALSE
Diff: 2 Page Ref: 100
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
19) The only certain thing about the future of any organization is change.
Answer: TRUE
Diff: 2 Page Ref: 100
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
, 20) Organizing is the cornerstone of effective strategy formulation.
Answer: FALSE
Diff: 1 Page Ref: 101
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
21) Planning should be performed mostly by middle management and then presented to top
management for analysis and approval.
Answer: FALSE
Diff: 2 Page Ref: 101
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
22) The controlling function of management is especially important for effective strategy
evaluation.
Answer: TRUE
Diff: 2 Page Ref: 104
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
23) The purpose of organizing is to achieve coordinated effort by defining task and authority
relationships.
Answer: TRUE
Diff: 2 Page Ref: 102
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
24) Motivation is one explanation why some people work hard and others do not.
Answer: TRUE
Diff: 1 Page Ref: 102
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
University of Washington DC
Strategic Management: A Competitive Advantage Approach, 14e (David)
The Internal Assessment
1) Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated
by competitors.
Answer: FALSE
Diff: 1 Page Ref: 95
Objective: 4.09 Explain cost/benefit analysis, value chain analysis, and benchmarking as
strategic-management tools.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
2) The process of performing an internal audit, compared to the external audit, provides more
opportunity for participants to understand how their jobs, departments and divisions fit into the
whole organization.
Answer: TRUE
Diff: 2 Page Ref: 96
Objective: 4.01 Describe how to perform an internal strategic-management audit.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
3) An internal audit task force of managers could be charged with determining a specific number
(usually 10 to 20) of the most important strengths and weaknesses.
Answer: TRUE
Diff: 2 Page Ref: 96
Objective: 4.01 Describe how to perform an internal strategic-management audit.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
4) Proponents of the resource-based view argue that external factors are more important than
internal factors for a firm in achieving and sustaining competitive advantage.
Answer: FALSE
Diff: 3 Page Ref: 97
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
5) The basic premise of the research-based view is that the mix, type, amount, and nature of a
firm's internal resources should be considered first and foremost in devising strategies that can
lead to sustainable competitive advantage.
Answer: TRUE
Diff: 2 Page Ref: 97-98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
6) The subtle, elusive and largely unconscious forces that shape the workplace are captured by
the organizational culture.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
,Learning Outcome: Describe tools and models for assessing a firm's internal environment
7) Cultural products include values, beliefs, stories, and language.
Answer: TRUE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
8) Metaphors are handed-down narratives of some wonderful event that are based on history but
have been embellished with fictional detail.
Answer: FALSE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
9) A ritual is a standardized, detailed set of techniques and behaviors used to manage anxieties.
Answer: TRUE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
10) For a resource to be valuable, it must be either rare, hard to imitate, or not easily sustainable.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
11) Linkages between a firm's culture and strategies often determine success.
Answer: TRUE
Diff: 1 Page Ref: 100
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
12) Resources that are common are never considered valuable.
Answer: FALSE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
13) The RBV theory asserts that it is advantageous for a firm to pursue a strategy that is not
currently being implemented by any competing firm.
Answer: TRUE
Diff: 2 Page Ref: 98
Objective: 4.02 Discuss the Resource-Based View (RBV) in strategic management.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
,14) An organization's culture compares to an individual's personality in the sense that no two
organizations have the same culture and no two individuals have the same personality.
Answer: TRUE
Diff: 1 Page Ref: 98
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
15) At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very
informal.
Answer: FALSE
Diff: 1 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
16) Established companies are coming to realize that their next generation of potential customers
spends more time online than watching TV.
Answer: TRUE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
17) While interesting, organizational culture does not significantly affect business decisions.
Answer: FALSE
Diff: 2 Page Ref: 99
Objective: 4.03 Discuss key interrelationships among the functional areas of business.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
18) Allocating resources is one of the five basic activities (functions) performed by managers.
Answer: FALSE
Diff: 2 Page Ref: 100
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
19) The only certain thing about the future of any organization is change.
Answer: TRUE
Diff: 2 Page Ref: 100
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
, 20) Organizing is the cornerstone of effective strategy formulation.
Answer: FALSE
Diff: 1 Page Ref: 101
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
21) Planning should be performed mostly by middle management and then presented to top
management for analysis and approval.
Answer: FALSE
Diff: 2 Page Ref: 101
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
22) The controlling function of management is especially important for effective strategy
evaluation.
Answer: TRUE
Diff: 2 Page Ref: 104
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
23) The purpose of organizing is to achieve coordinated effort by defining task and authority
relationships.
Answer: TRUE
Diff: 2 Page Ref: 102
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
24) Motivation is one explanation why some people work hard and others do not.
Answer: TRUE
Diff: 1 Page Ref: 102
Objective: 4.04 Identify the basic functions or activities that make up management, marketing,
finance/accounting, production/operations, research and development, and management
information systems.
Learning Outcome: Describe tools and models for assessing a firm's internal environment
