Strategic Management and Competitive Advantage; Concepts and Cases (6th Edition)

TEST BANK FOR
STRATEGICMANAGEMENT6TH EDITION
ROTHAERMEL FRANK
ISBN978-1266191862

,Chapter 1-12 Answers are at the End of Each Chapter
A A A A A A A A A




Chapter 1 A




Student name:
A


1) AAgoodAstrategyAallowsAaAfirmAtoAachieveAsuperiorAperformanceAandAsustainableAcompetitiv
eAadvantageAwithoutAregardAtoAtheAexternalAenvironment.
⊚A true
⊚A false



2) TheAfollowingAstatementAbyAtheAchiefAexecutiveAofAMegaFilmsAmovieAstudioAshouldAnotAb
eAusedAasAaAstrategy:A“WeAwillAproduceAtheAgreatestAfilmsAofAtheA21stAcentury.”
⊚A true
⊚A false



3) TheAthreeAtasksAofAtheAAFIAstrategyAframeworkAareAtoAAssembleAaAprototype,AFindAaAbuyer,Aa
ndAIncorporateAfeedback.
⊚A true
⊚A false



4) QuestionsAaskedAduringAtheAstrategyAanalysisAstageAofAtheAAFIAframeworkAshouldAincludeA
“WhatAeffectsAdoAforcesAinAtheAexternalAenvironmentAhaveAonAtheAfirm’sApotentialAtoAgainAa
ndAsustainAaAcompetitiveAadvantage?”
⊚A true
⊚A false

,5) OnceAaAstrategyAhasAbeenAformulatedAandAimplemented,AitAisAimportantAthatAtheAfirmAsticksAto
AitAnoAmatterAwhatAhappens.
⊚A true
⊚A false



6) BecauseAtheyAareAaAcrucialAcomponentAofAaAfirm’sAsuccess,AcustomersAareAconsideredAintern
alAstakeholders.
⊚A true
⊚A false



7) AAfirmAisArequiredAbyAsocietyAandAitsAshareholdersAtoAmeetAitsAethicalAandAphilanthrop
icAresponsibilities.
⊚A true
⊚A false



8) StakeholderAimpactAanalysisAprovidesAaAdecisionAtoolAthatAhelpsAstrategicAleadersArecognizeAth
eAneedsAofAdifferentAstakeholders.
⊚A true
⊚A false



9) JuanAwantsAtoAopenAhisAownAhotAdogArestaurantAbutAdoesn’tAknowAanythingAaboutAbusiness.A
HeAneedsAhelpAdeterminingAwhoAhisAcompetitionAis,AhowAheAshouldAcraftAhisAstrategyAtoAco
mpeteAandAhowAhe’llAimplementAhisAstrategyAtoAachieveAaAcompetitiveAadvantage.AHe’sAhire
dAyouAtoAhelpAhimAgetAstarted.AAsAaAresult,AyouAwillAprobablyAuseAwhichAofAtheAfollowing?
A) AFIAstrategyAframework
B) RedAQueenAeffect
C) competitiveAbenchmarking
D) StakeholderAImpactAanalysis

, 10) RobertaAisAinterestedAinAtheAconceptAofAstrategyAandAdecidesAtoAcreateAherAown.AAsAaAresu
lt,ARobertaAsaysAthatAherAstrategyAisAtoAfocusAonAcompetitiveAbenchmarkingAtoAachieveAc
ompetitiveAadvantage.AWhichAisAtheAbestAevaluationAofARoberta’sAstatement?
A) Roberta’sAstrategyAisAclear,AbutAsheAshouldAprovideAmoreAdetail.
B) Roberta’sAstrategyArevealsAaAclearAstrategicApositionAandAtradeoff,AsoAsheAshoul
dAproceed.
C) RobertaAshouldAreevaluateAherAstatementAbecauseAitAfailsAtoAmentionAmoreAthanAon
eAstrategy.
D) RobertaAshouldAreevaluateAherAstatementAbecauseAitAfailsAtoAmeetAtheAprinciplesAofAwh
atAaAstrategyAshouldAbe.



11) Tony’sAPizzaAShopAisAableAtoAnetA$10,000AaAweek;AthisAmakesAtheAshopAprofitable.AItsAnumb
erAoneAcompetitor,ALeo’sAPies,AisAalsoAprofitable,AnettingA$12,000AaAweek.ALilAAnthony’sAP
izzaAPalaceAnetsA$13,000AaAweek.ASinceATony’sAPizzaAShopAisAprofitable,AweAcanAconclude
AthatAitAhasAaAcompetitiveAadvantageAinAitsAindustry.


A) True—competitiveAadvantageAisAachievedAthroughAprofitabilityAalone.
B) True—competitiveAadvantageAisAachievedAsinceATonyAhasAaApositiveAnetAincome.
C) False—
competitiveAadvantageAisAonlyAachievedAbyAgeneratingAaboveAaverageAreturns,Arelati
veAtoAcompetition.
D) False—
TonyAmoreAthanAlikelyAhasAaAsustainedAcompetitiveAadvantageAsinceAhe’sAbeenAinAbu
sinessAlonger.



12) Bill’sAAutoA&AAirplaneARepairAshopAisAableAtoAgenerateAaApositiveAnetAincomeAofA$10,000
a week,AwhichAisAaboutAtheAsameAasAtheAincomeAofAaAcloseAcompetitor.AAsAaAresult,AweA
A A


canAconcludeAthatAtheAtwoAbusinessesAalsoAhaveAaAcompetitiveAparityAinAtheAindustry.
A) Correct—competitiveAadvantageAisAachievedAthroughAprofitabilityAalone.
B) Correct—
competitiveAadvantageAisAachievedAsinceABill’sAAutoA&AAirplaneARepairAshopAhasAaAp
ositiveAnetAincome.
C) Correct—competitiveAparityAisAaAperformanceAofAtwoAorAmoreAfirmsAatAtheAsameAlevel.
D) Incorrect—
Bill’sAAutoA&AAirplaneARepairAshopAmoreAthanAlikelyAhasAaAsustainedAcompetiti
veAadvantageAbecauseAtheAbusinessAisAdiversified.