TEST BANK FOR STRATEGIC MANAGEMENT 6TH
EDITION BY FRANK ROTHAERMEL || ALL CHAPTERS
1-12 COMPLETE | ISBN: 978-1266191862
,Chapter 1-12 Answers are at the End of Each Chapter
J J
Chapter 1 J
Student name:
J
1) AJgoodJstrategyJallowsJaJfirmJtoJachieveJsuperiorJperformanceJandJsustainableJcompetitiveJad
vantageJwithoutJregardJtoJtheJexternalJenvironment.
⊚J true
⊚J false
2) TheJfollowingJstatementJbyJtheJchiefJexecutiveJofJMegaFilmsJmovieJstudioJshouldJnotJbeJus
edJasJaJstrategy:J“WeJwillJproduceJtheJgreatestJfilmsJofJtheJ21stJcentury.”
⊚J true
⊚J false
3) TheJthreeJtasksJofJtheJAFIJstrategyJframeworkJareJtoJAssembleJaJprototype,JFindJaJbuyer,JandJIn
c orporateJfeedback.
⊚J true
⊚J false
4) QuestionsJaskedJduringJtheJstrategyJanalysisJstageJofJtheJAFIJframeworkJshouldJincludeJ“Wh
atJeffectsJdoJforcesJinJtheJexternalJenvironmentJhaveJonJtheJfirm’sJpotentialJtoJgainJandJsustainJ
aJcompetitiveJadvantage?”
⊚J true
⊚J false
5) OnceJaJstrategyJhasJbeenJformulatedJandJimplemented,JitJisJimportantJthatJtheJfirmJsticksJtoJitJnoJ
matterJwhatJhappens.
⊚J true
⊚J false
6) BecauseJtheyJareJaJcrucialJcomponentJofJaJfirm’sJsuccess,JcustomersJareJconsideredJinternalJsta
keholders.
⊚J true
⊚J false
,7) AJfirmJisJrequiredJbyJsocietyJandJitsJshareholdersJtoJmeetJitsJethicalJandJphilanthropicJres
ponsibilities.
⊚J true
⊚J false
8) JuanJwantsJtoJopenJhisJownJhotJdogJrestaurantJbutJdoesn’tJknowJanythingJaboutJbusiness.JHeJne
edsJhelpJdeterminingJwhoJhisJcompetitionJis,JhowJheJshouldJcraftJhisJstrategyJtoJcompeteJandJh
owJhe’llJimplementJhisJstrategyJtoJachieveJaJcompetitiveJadvantage.JHe’sJhiredJyouJtoJhelpJhimJ
getJstarted.JAsJaJresult,JyouJwillJprobablyJuseJwhichJofJtheJfollowing?
A) AFIJstrategyJframework
B) RedJQueenJeffect
C) competitiveJbenchmarking
D) StakeholderJImpactJanalysis
9) RobertaJisJinterestedJinJtheJconceptJofJstrategyJandJdecidesJtoJcreateJherJown.JAsJaJresult,JRo
bertaJsaysJthatJherJstrategyJisJtoJfocusJonJcompetitiveJbenchmarkingJtoJachieveJcompetitiveJ
advantage.JWhichJisJtheJbestJevaluationJofJRoberta’sJstatement?
A) Roberta’sJstrategyJisJclear,JbutJsheJshouldJprovideJmoreJdetail.
B) Roberta’sJstrategyJrevealsJaJclearJstrategicJpositionJandJtradeoff,JsoJsheJshouldJpr oceed.
C) RobertaJshouldJreevaluateJherJstatementJbecauseJitJfailsJtoJmentionJmoreJthanJoneJstr
ategy.
D) RobertaJshouldJreevaluateJherJstatementJbecauseJitJfailsJtoJmeetJtheJprinciplesJofJwhatJaJ
s trategyJshouldJbe.
10) StakeholderJimpactJanalysisJprovidesJaJdecisionJtoolJthatJhelpsJstrategicJleadersJrecognizeJtheJn
e edsJofJdifferentJstakeholders.
⊚J true
⊚J false
11) Tony’sJPizzaJShopJisJableJtoJnetJ$10,000JaJweek;JthisJmakesJtheJshopJprofitable.JItsJnumberJon
eJcompetitor,JLeo’sJPies,JisJalsoJprofitable,JnettingJ$12,000JaJweek.JLilJAnthony’sJPizzaJPalac
eJnetsJ$13,000JaJweek.JSinceJTony’sJPizzaJShopJisJprofitable,JweJcanJconcludeJthatJitJhasJaJco
mpetitiveJadvantageJinJitsJindustry.
A) True—competitiveJadvantageJisJachievedJthroughJprofitabilityJalone.
B) True—competitiveJadvantageJisJachievedJsinceJTonyJhasJaJpositiveJnetJincome.
C) False—
, competitiveJadvantageJisJonlyJachievedJbyJgeneratingJaboveJaverageJreturns,JrelativeJt
oJcompetition.
D) False—
TonyJmoreJthanJlikelyJhasJaJsustainedJcompetitiveJadvantageJsinceJhe’sJbeenJinJbusines
sJlonger.
12) Bill’sJAutoJ&JAirplaneJRepairJshopJisJableJtoJgenerateJaJpositiveJnetJincomeJofJ$10,000JaJwe
ek,JwhichJisJaboutJtheJsameJasJtheJincomeJofJaJcloseJcompetitor.JAsJaJresult,JweJcanJconclud
eJthatJtheJtwoJbusinessesJalsoJhaveJaJcompetitiveJparityJinJtheJindustry.
A) Correct—competitiveJadvantageJisJachievedJthroughJprofitabilityJalone.
B) Correct—
competitiveJadvantageJisJachievedJsinceJBill’sJAutoJ&JAirplaneJRepairJshopJhasJaJpositi
veJnetJincome.
C) Correct—competitiveJparityJisJaJperformanceJofJtwoJorJmoreJfirmsJatJtheJsameJlevel.
D) Incorrect—
Bill’sJAutoJ&JAirplaneJRepairJshopJmoreJthanJlikelyJhasJaJsustainedJcompetitiveJa
dvantageJbecauseJtheJbusinessJisJdiversified.
13) ToJbetterJachieveJaJcompetitiveJadvantage,JfirmsJmustJnowJadoptJaJholisticJapproachJtowardsJsa
t
isfyingJmultipleJstakeholdersJopposedJtoJfocusingJonJtheJneedsJofJtheirJshareholders.JWhatJtermJ
isJusedJforJthisJapproach?
A) stakeholderJstrategy
B) internalJshareholderJstrategy
C) valueJcreationJstrategy
D) shareholderJrelationshipJstrategy
14) AllJofJtheJfollowingJareJexternalJstakeholdersJexceptJwhichJofJtheJfollowing?
A) customers
B) creditors
C) allianceJpartners
D) competitors
15) JohnJisJaJbitJconfusedJaboutJtheJdifferenceJbetweenJstakeholdersJandJstockholders.JYouJmeetJwi
thJJohnJandJinformJhimJthatJtheJmainJdifferenceJisJthat
A) stakeholdersJareJbothJinternalJandJexternalJtoJtheJfirmJwhileJstockholdersJareJco
nsideredJexternalJtoJtheJfirm.
B) stakeholdersJareJconsideredJinternalJtoJtheJfirmJwhileJstockholdersJareJexternalJtoJtheJfir
m.
EDITION BY FRANK ROTHAERMEL || ALL CHAPTERS
1-12 COMPLETE | ISBN: 978-1266191862
,Chapter 1-12 Answers are at the End of Each Chapter
J J
Chapter 1 J
Student name:
J
1) AJgoodJstrategyJallowsJaJfirmJtoJachieveJsuperiorJperformanceJandJsustainableJcompetitiveJad
vantageJwithoutJregardJtoJtheJexternalJenvironment.
⊚J true
⊚J false
2) TheJfollowingJstatementJbyJtheJchiefJexecutiveJofJMegaFilmsJmovieJstudioJshouldJnotJbeJus
edJasJaJstrategy:J“WeJwillJproduceJtheJgreatestJfilmsJofJtheJ21stJcentury.”
⊚J true
⊚J false
3) TheJthreeJtasksJofJtheJAFIJstrategyJframeworkJareJtoJAssembleJaJprototype,JFindJaJbuyer,JandJIn
c orporateJfeedback.
⊚J true
⊚J false
4) QuestionsJaskedJduringJtheJstrategyJanalysisJstageJofJtheJAFIJframeworkJshouldJincludeJ“Wh
atJeffectsJdoJforcesJinJtheJexternalJenvironmentJhaveJonJtheJfirm’sJpotentialJtoJgainJandJsustainJ
aJcompetitiveJadvantage?”
⊚J true
⊚J false
5) OnceJaJstrategyJhasJbeenJformulatedJandJimplemented,JitJisJimportantJthatJtheJfirmJsticksJtoJitJnoJ
matterJwhatJhappens.
⊚J true
⊚J false
6) BecauseJtheyJareJaJcrucialJcomponentJofJaJfirm’sJsuccess,JcustomersJareJconsideredJinternalJsta
keholders.
⊚J true
⊚J false
,7) AJfirmJisJrequiredJbyJsocietyJandJitsJshareholdersJtoJmeetJitsJethicalJandJphilanthropicJres
ponsibilities.
⊚J true
⊚J false
8) JuanJwantsJtoJopenJhisJownJhotJdogJrestaurantJbutJdoesn’tJknowJanythingJaboutJbusiness.JHeJne
edsJhelpJdeterminingJwhoJhisJcompetitionJis,JhowJheJshouldJcraftJhisJstrategyJtoJcompeteJandJh
owJhe’llJimplementJhisJstrategyJtoJachieveJaJcompetitiveJadvantage.JHe’sJhiredJyouJtoJhelpJhimJ
getJstarted.JAsJaJresult,JyouJwillJprobablyJuseJwhichJofJtheJfollowing?
A) AFIJstrategyJframework
B) RedJQueenJeffect
C) competitiveJbenchmarking
D) StakeholderJImpactJanalysis
9) RobertaJisJinterestedJinJtheJconceptJofJstrategyJandJdecidesJtoJcreateJherJown.JAsJaJresult,JRo
bertaJsaysJthatJherJstrategyJisJtoJfocusJonJcompetitiveJbenchmarkingJtoJachieveJcompetitiveJ
advantage.JWhichJisJtheJbestJevaluationJofJRoberta’sJstatement?
A) Roberta’sJstrategyJisJclear,JbutJsheJshouldJprovideJmoreJdetail.
B) Roberta’sJstrategyJrevealsJaJclearJstrategicJpositionJandJtradeoff,JsoJsheJshouldJpr oceed.
C) RobertaJshouldJreevaluateJherJstatementJbecauseJitJfailsJtoJmentionJmoreJthanJoneJstr
ategy.
D) RobertaJshouldJreevaluateJherJstatementJbecauseJitJfailsJtoJmeetJtheJprinciplesJofJwhatJaJ
s trategyJshouldJbe.
10) StakeholderJimpactJanalysisJprovidesJaJdecisionJtoolJthatJhelpsJstrategicJleadersJrecognizeJtheJn
e edsJofJdifferentJstakeholders.
⊚J true
⊚J false
11) Tony’sJPizzaJShopJisJableJtoJnetJ$10,000JaJweek;JthisJmakesJtheJshopJprofitable.JItsJnumberJon
eJcompetitor,JLeo’sJPies,JisJalsoJprofitable,JnettingJ$12,000JaJweek.JLilJAnthony’sJPizzaJPalac
eJnetsJ$13,000JaJweek.JSinceJTony’sJPizzaJShopJisJprofitable,JweJcanJconcludeJthatJitJhasJaJco
mpetitiveJadvantageJinJitsJindustry.
A) True—competitiveJadvantageJisJachievedJthroughJprofitabilityJalone.
B) True—competitiveJadvantageJisJachievedJsinceJTonyJhasJaJpositiveJnetJincome.
C) False—
, competitiveJadvantageJisJonlyJachievedJbyJgeneratingJaboveJaverageJreturns,JrelativeJt
oJcompetition.
D) False—
TonyJmoreJthanJlikelyJhasJaJsustainedJcompetitiveJadvantageJsinceJhe’sJbeenJinJbusines
sJlonger.
12) Bill’sJAutoJ&JAirplaneJRepairJshopJisJableJtoJgenerateJaJpositiveJnetJincomeJofJ$10,000JaJwe
ek,JwhichJisJaboutJtheJsameJasJtheJincomeJofJaJcloseJcompetitor.JAsJaJresult,JweJcanJconclud
eJthatJtheJtwoJbusinessesJalsoJhaveJaJcompetitiveJparityJinJtheJindustry.
A) Correct—competitiveJadvantageJisJachievedJthroughJprofitabilityJalone.
B) Correct—
competitiveJadvantageJisJachievedJsinceJBill’sJAutoJ&JAirplaneJRepairJshopJhasJaJpositi
veJnetJincome.
C) Correct—competitiveJparityJisJaJperformanceJofJtwoJorJmoreJfirmsJatJtheJsameJlevel.
D) Incorrect—
Bill’sJAutoJ&JAirplaneJRepairJshopJmoreJthanJlikelyJhasJaJsustainedJcompetitiveJa
dvantageJbecauseJtheJbusinessJisJdiversified.
13) ToJbetterJachieveJaJcompetitiveJadvantage,JfirmsJmustJnowJadoptJaJholisticJapproachJtowardsJsa
t
isfyingJmultipleJstakeholdersJopposedJtoJfocusingJonJtheJneedsJofJtheirJshareholders.JWhatJtermJ
isJusedJforJthisJapproach?
A) stakeholderJstrategy
B) internalJshareholderJstrategy
C) valueJcreationJstrategy
D) shareholderJrelationshipJstrategy
14) AllJofJtheJfollowingJareJexternalJstakeholdersJexceptJwhichJofJtheJfollowing?
A) customers
B) creditors
C) allianceJpartners
D) competitors
15) JohnJisJaJbitJconfusedJaboutJtheJdifferenceJbetweenJstakeholdersJandJstockholders.JYouJmeetJwi
thJJohnJandJinformJhimJthatJtheJmainJdifferenceJisJthat
A) stakeholdersJareJbothJinternalJandJexternalJtoJtheJfirmJwhileJstockholdersJareJco
nsideredJexternalJtoJtheJfirm.
B) stakeholdersJareJconsideredJinternalJtoJtheJfirmJwhileJstockholdersJareJexternalJtoJtheJfir
m.
