,TESTBANK FOR Strategic Management 5e Dyer
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Strategic Management: Concepts and Cases, 5e (Dyer)
Chapter 1 What Is Business Strategy?
1) The origin of strategy comes from the role of a(n) ________. Great individuals in this role
provide ________.
A) architect of the greatest buildings in the world; a good goal
B) architect of the greatest buildings in the world; high level orchestration and vision
C) general in a war; a good goal
D) general in a war; high level orchestration and vision
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
2) ________ is defined as a company's plan to create and capture value in a marketplace.
A) Business strategy
B) Competitive advantage
C) Infrastructure process
D) Market value
Answer: A
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
3) ________ is the difference between a customer's willingness to pay for a product and the
firm's total costs to provide the product.
A) Advantage
B) Cost
C) Process
D) Value
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
1
,4) ________ can be best defined as when an organization generates and captures more value
compared to its rivals.
A) Client advantage
B) Competitive advantage
C) Employer advantage
D) Unique value
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
5) Firms that capture more value than competitors generate ________.
A) higher costs
B) higher profits
C) lower assets
D) lower market value
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
6) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its
competitors. To overcome this, the employees of Gems Corp. decide to work harder to provide
unique value to customers and increase the sales of the company. After a year, it makes more
profits than its competitors. This scenario best illustrates ________.
A) client advantage
B) internal analysis
C) external analysis
D) competitive advantage
Answer: D
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
2
,7) The industry and geographic area that a company competes in, is referred to as its ________.
A) niche
B) business
C) segment
D) market
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
8) Adia and Ali are two business partners who want to set up a company that sells imported
sports gear and equipment. To make sure that the company makes and retains profit, they must
choose an area that is close to where their products have the highest demand. This area should
allow them consistently to make profit. In this scenario, Adia and Ali are looking for a
________.
A) market
B) strategy
C) cost advantage
D) mission
Answer: A
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
9) ________ can be best defined as the reason a firm wins with customers or the value
proposition it offers to customers, such as a low-cost advantage or differentiation advantage.
A) Switching costs
B) Unique value
C) Complementary products
D) SWOT analysis
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
3
,10) The employees of Flamingo Inc., a greeting card company, focus on providing unmatched
customer satisfaction. Unlike its competitors, the employees of Flamingo take the time to listen
to the needs of individual customers and design custom-made cards upon request. The customers
of Flamingo state that the company provides a large variety of affordable products to choose
from. The company has won many awards for providing complete customer satisfaction. In this
scenario, which of the following does Flamingo Inc. provide to its customers?
A) Backward integration
B) Switching costs
C) Complementary products
D) Unique value
Answer: D
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
11) Which of the following is NOT a way strategists can typically increase a customer's
willingness to pay?
A) Improving the features or quality of the product
B) Increasing the investment in equipment or physical assets
C) Providing a complementary product or service
D) Widespread adoption of the product
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
4
,12) Returns in excess of what an investor expects from other investments with a similar amount
of risk are referred to as ________.
A) unique value
B) complimentary value
C) above-average profits
D) above-average losses
Answer: C
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
13) The Mykari Publishing House invested in buying high-end machinery that allowed its
newspapers to be printed at twice the speed of average printing machines. The executives of the
company stated that this would increase the company's profit margin by 12% as opposed to the
usual 7 to 8% that it makes annually. When the finances of the company were tallied this year, it
was found that the profits increased to about 19%. This scenario best illustrates ________.
A) return of equity
B) above-average profits
C) complimentary value
D) unique value
Answer: B
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
14) Which of the following is true of competitive advantage?
A) It requires a company to consistently outperform its rivals in generating value and realizing
above-average profits.
B) It should be avoided by organizations that are not trying to make a profit.
C) It is usually achieved by firms that provide general as well as imitable products.
D) It can be measured by using only tangible outcomes.
Answer: A
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
5
,15) Which of the following statements about risks is true?
A) Investing in a utility company that supplies power to customers, who have few alternative
sources of power, can be very risky.
B) Investors take up risks every time when they are not sure if their investments will be a gain or
a loss.
C) Investing in a stable firm is generally considered very risky even if it has a long history of
profitability.
D) Investors face less risk when they put their money into start-up companies that try to launch
products based on new technologies.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
16) Which of the following is the main purpose of a strategic management process?
A) Ensuring that all employees have managers and supervisors to lead their teams
B) Creating an organization that functions systematically according to its vision, mission, and
goals
C) Creating a high-level plan that can be implemented without fierce competition and undue risk
D) Specifying a high-level plan that an organization will employ to create and capture value
Answer: D
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
6
,17) The management of Neptune Inc. creates a definite plan of action that will surely create
profits for the company. It allocates and sectionalizes its machinery and personnel. The main
office is moved to a prime location that helps attract customers and facilitates competitive
development. This plan of action helps Neptune Inc. retain its competitive advantage and has
also grow as a company. Which of the following terms does this scenario best illustrate?
A) Strategic tools
B) Strategic management process
C) Functional strategy
D) Business unit strategy
Answer: B
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
18) Which of the following statements is true of external analysis?
A) It focuses on the weaknesses a company must overcome and the threats that a company might
come across.
B) It studies the factors that influence an organization's appeal and environment.
C) It focuses on the factors that influence employees of an organization to leave.
D) It analyzes a firm's resources and capabilities to assess how effectively it is able to deliver
unique value.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
7
, 19) The Board of Directors of Miranay Corp. assesses and evaluates the firm's industry structure.
To track the factors that could affect Miranay's performance, it tries to scan the industry's
positive and negative trends. The Board of Directors of Miranay Corp. is involved in a(n)
________.
A) financial analysis
B) internal analysis
C) external analysis
D) profit analysis
Answer: C
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
20) Which of the following statements best describes the term internal analysis?
A) It studies the infrastructure of a company to gauge the number of employees it can recruit.
B) It examines a company's resources and capabilities to configure a firm's ability to deliver
unique value.
C) It examines the emotions of a firm's employees to identify their weaknesses.
D) It examines the efficiency of employees through the help of standardized tests and group
discussions.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
8
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Strategic Management: Concepts and Cases, 5e (Dyer)
Chapter 1 What Is Business Strategy?
1) The origin of strategy comes from the role of a(n) ________. Great individuals in this role
provide ________.
A) architect of the greatest buildings in the world; a good goal
B) architect of the greatest buildings in the world; high level orchestration and vision
C) general in a war; a good goal
D) general in a war; high level orchestration and vision
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
2) ________ is defined as a company's plan to create and capture value in a marketplace.
A) Business strategy
B) Competitive advantage
C) Infrastructure process
D) Market value
Answer: A
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
3) ________ is the difference between a customer's willingness to pay for a product and the
firm's total costs to provide the product.
A) Advantage
B) Cost
C) Process
D) Value
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
1
,4) ________ can be best defined as when an organization generates and captures more value
compared to its rivals.
A) Client advantage
B) Competitive advantage
C) Employer advantage
D) Unique value
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
5) Firms that capture more value than competitors generate ________.
A) higher costs
B) higher profits
C) lower assets
D) lower market value
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
6) Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its
competitors. To overcome this, the employees of Gems Corp. decide to work harder to provide
unique value to customers and increase the sales of the company. After a year, it makes more
profits than its competitors. This scenario best illustrates ________.
A) client advantage
B) internal analysis
C) external analysis
D) competitive advantage
Answer: D
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
2
,7) The industry and geographic area that a company competes in, is referred to as its ________.
A) niche
B) business
C) segment
D) market
Answer: D
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
8) Adia and Ali are two business partners who want to set up a company that sells imported
sports gear and equipment. To make sure that the company makes and retains profit, they must
choose an area that is close to where their products have the highest demand. This area should
allow them consistently to make profit. In this scenario, Adia and Ali are looking for a
________.
A) market
B) strategy
C) cost advantage
D) mission
Answer: A
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
9) ________ can be best defined as the reason a firm wins with customers or the value
proposition it offers to customers, such as a low-cost advantage or differentiation advantage.
A) Switching costs
B) Unique value
C) Complementary products
D) SWOT analysis
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
3
,10) The employees of Flamingo Inc., a greeting card company, focus on providing unmatched
customer satisfaction. Unlike its competitors, the employees of Flamingo take the time to listen
to the needs of individual customers and design custom-made cards upon request. The customers
of Flamingo state that the company provides a large variety of affordable products to choose
from. The company has won many awards for providing complete customer satisfaction. In this
scenario, which of the following does Flamingo Inc. provide to its customers?
A) Backward integration
B) Switching costs
C) Complementary products
D) Unique value
Answer: D
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
11) Which of the following is NOT a way strategists can typically increase a customer's
willingness to pay?
A) Improving the features or quality of the product
B) Increasing the investment in equipment or physical assets
C) Providing a complementary product or service
D) Widespread adoption of the product
Answer: B
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
4
,12) Returns in excess of what an investor expects from other investments with a similar amount
of risk are referred to as ________.
A) unique value
B) complimentary value
C) above-average profits
D) above-average losses
Answer: C
Diff: 1
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Knowledge
Standard 1: AACSB || Analytic
13) The Mykari Publishing House invested in buying high-end machinery that allowed its
newspapers to be printed at twice the speed of average printing machines. The executives of the
company stated that this would increase the company's profit margin by 12% as opposed to the
usual 7 to 8% that it makes annually. When the finances of the company were tallied this year, it
was found that the profits increased to about 19%. This scenario best illustrates ________.
A) return of equity
B) above-average profits
C) complimentary value
D) unique value
Answer: B
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
14) Which of the following is true of competitive advantage?
A) It requires a company to consistently outperform its rivals in generating value and realizing
above-average profits.
B) It should be avoided by organizations that are not trying to make a profit.
C) It is usually achieved by firms that provide general as well as imitable products.
D) It can be measured by using only tangible outcomes.
Answer: A
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
5
,15) Which of the following statements about risks is true?
A) Investing in a utility company that supplies power to customers, who have few alternative
sources of power, can be very risky.
B) Investors take up risks every time when they are not sure if their investments will be a gain or
a loss.
C) Investing in a stable firm is generally considered very risky even if it has a long history of
profitability.
D) Investors face less risk when they put their money into start-up companies that try to launch
products based on new technologies.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
16) Which of the following is the main purpose of a strategic management process?
A) Ensuring that all employees have managers and supervisors to lead their teams
B) Creating an organization that functions systematically according to its vision, mission, and
goals
C) Creating a high-level plan that can be implemented without fierce competition and undue risk
D) Specifying a high-level plan that an organization will employ to create and capture value
Answer: D
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
6
,17) The management of Neptune Inc. creates a definite plan of action that will surely create
profits for the company. It allocates and sectionalizes its machinery and personnel. The main
office is moved to a prime location that helps attract customers and facilitates competitive
development. This plan of action helps Neptune Inc. retain its competitive advantage and has
also grow as a company. Which of the following terms does this scenario best illustrate?
A) Strategic tools
B) Strategic management process
C) Functional strategy
D) Business unit strategy
Answer: B
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
18) Which of the following statements is true of external analysis?
A) It focuses on the weaknesses a company must overcome and the threats that a company might
come across.
B) It studies the factors that influence an organization's appeal and environment.
C) It focuses on the factors that influence employees of an organization to leave.
D) It analyzes a firm's resources and capabilities to assess how effectively it is able to deliver
unique value.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
7
, 19) The Board of Directors of Miranay Corp. assesses and evaluates the firm's industry structure.
To track the factors that could affect Miranay's performance, it tries to scan the industry's
positive and negative trends. The Board of Directors of Miranay Corp. is involved in a(n)
________.
A) financial analysis
B) internal analysis
C) external analysis
D) profit analysis
Answer: C
Diff: 3
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Application
Standard 1: AACSB || Analytic
20) Which of the following statements best describes the term internal analysis?
A) It studies the infrastructure of a company to gauge the number of employees it can recruit.
B) It examines a company's resources and capabilities to configure a firm's ability to deliver
unique value.
C) It examines the emotions of a firm's employees to identify their weaknesses.
D) It examines the efficiency of employees through the help of standardized tests and group
discussions.
Answer: B
Diff: 2
Section Reference: 1: What Is Business Strategy?
Learning Objective: 1: Define business strategy, including the importance of competitive
advantage, the four choices that are critical to strategy formulation, and the strategic
management process.
Bloom code: Comprehension
Standard 1: AACSB || Analytic
8
