Question 1

______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders.

Accepted Answer

A)  A strategy 
B)  A vision 
C)  A mission 
D)  A goal 
A)  A strategy 
B)  A vision 
C)  A mission 
D)  A goal

Question 2

Research shows that approximately ______ percent of a firm's profitability is explained by the industry in which it competes, whereas ______ percent is explained by the firm's characteristics and actions.

Accepted Answer

A)  90; 10 
B)  60; 40 
C)  36; 20 
D)  20; 36 
A)  90; 10 
B)  60; 40 
C)  36; 20 
D)  20; 36

Question 3

Who are the firm's strategic leaders?  What things can a strategic leader focus on to be effective?

Accepted Answer

The firm's strategic leaders include the

Question 4

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ______, and  ______.

Accepted Answer

A)  unique; easy to imitate. 
B)  easy to imitate; difficult to implement. 
C)  rare; costly to imitate. 
D)  easy to implement; unique. 
A)  unique; easy to imitate. 
B)  easy to imitate; difficult to implement. 
C)  rare; costly to imitate. 
D)  easy to implement; unique.

Question 5

Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its investors higher returns than those earned by its direct competitors' investors. RNH has a reputation for providing high-paying managerial and hourly-employee jobs. However, recent investigations have revealed that the nursing home residents have been provided substandard care, including non-nutritious and unappetizing meals, non-functional medical equipment, and inadequate patient-care staffing. Which statement best describes the situation?

Accepted Answer

A)  RNH has been earning below-average returns, so it has had to prioritize the demands of its various stakeholders. 
B)  RNH has prioritized the demands of capital market stakeholders and organizational stakeholders, over the demands of product market stakeholders. 
C)  RNH has earned above-average returns and so has satisfied the needs of all relevant stakeholders. 
D)  RNH has been attempting to minimally satisfy the demands of all of its stakeholders. 
A)  RNH has been earning below-average returns, so it has had to prioritize the demands of its various stakeholders. 
B)  RNH has prioritized the demands of capital market stakeholders and organizational stakeholders, over the demands of product market stakeholders. 
C)  RNH has earned above-average returns and so has satisfied the needs of all relevant stakeholders. 
D)  RNH has been attempting to minimally satisfy the demands of all of its stakeholders.

Question 6

While patents may be an effective way of protecting proprietary technology, many firms competing in the electronics industry do not apply for patents to prevent competitors from utilizing the technological knowledge that would be included in the patent application.

Accepted Answer

A) True 
 B)False

Question 7

______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones.

Accepted Answer

A)  Perpetual 
B)  Disruptive 
C)  Global 
D)  Diffusion 
A)  Perpetual 
B)  Disruptive 
C)  Global 
D)  Diffusion

Question 8

Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions.

Accepted Answer

A)  flexibility 
B)  innovation 
C)  speed 
D)  All of these options are correct. 
A)  flexibility 
B)  innovation 
C)  speed 
D)  All of these options are correct.

Question 9

An effective vision stretches and challenges people and can result in increased innovation.  This is illustrated by Apple's CEO Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe").

Accepted Answer

A) True 
 B)False

Question 10

Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk.

Accepted Answer

A) True 
 B)False

Question 11

The resource-based view of the firm:

Accepted Answer

A)  emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. 
B)  argues that the industry environment has a stronger influence on firms' ability to implement strategies successfully than does the competitive environment. 
C)  calls for firms to focus on their homogeneous capabilities to compete against their rivals. 
D)  suggests that vision and mission are marketing messages not tied to strategic plans. 
A)  emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone. 
B)  argues that the industry environment has a stronger influence on firms' ability to implement strategies successfully than does the competitive environment. 
C)  calls for firms to focus on their homogeneous capabilities to compete against their rivals. 
D)  suggests that vision and mission are marketing messages not tied to strategic plans.

Question 12

Resources are considered rare when they have no structural equivalent.

Accepted Answer

A) True 
 B)False

Question 13

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 14

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n):

Accepted Answer

A)  strategic mission. 
B)  inspiring vision. 
C)  core competence. 
D)  sustainable market niche. 
A)  strategic mission. 
B)  inspiring vision. 
C)  core competence. 
D)  sustainable market niche.

Question 15

Explain the relationship of the strategic management process to organizational ethics.

Accepted Answer

Almost all strategic management process

Question 16

The resource-based model argues that:

Accepted Answer

A)  all resources have the potential to be the basis of sustainable competitive advantage. 
B)  resources alone can be a source of sustainable competitive advantage. 
C)  the key to competitive success is the structure of the industry in which the firm competes. 
D)  resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies. 
A)  all resources have the potential to be the basis of sustainable competitive advantage. 
B)  resources alone can be a source of sustainable competitive advantage. 
C)  the key to competitive success is the structure of the industry in which the firm competes. 
D)  resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies.

Question 17

The industrial organization (I/O) model argues that:

Accepted Answer

A)  the key factor in success is choosing the correct industry in which to compete. 
B)  the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. 
C)  the key to earning above-average returns is strategic flexibility. 
D)  the internal structure of the organization must match the industry in which it competes for it to earn above-average returns on investment. 
A)  the key factor in success is choosing the correct industry in which to compete. 
B)  the firm's internal resources and capabilities represent the foundation for development of a value-creating strategy. 
C)  the key to earning above-average returns is strategic flexibility. 
D)  the internal structure of the organization must match the industry in which it competes for it to earn above-average returns on investment.

Question 18

Strategic delegation helps:

Accepted Answer

A)  overload middle managers. 
B)  executives control strategy implementation. 
C)  avoid too much managerial hubris. 
D)  emphasize profit maximization. 
A)  overload middle managers. 
B)  executives control strategy implementation. 
C)  avoid too much managerial hubris. 
D)  emphasize profit maximization.

Question 19

The goal of strategy implementation is to develop a permanent competitive advantage.

Accepted Answer

A) True 
 B)False

Question 20

According to Hitt, the primary drivers of hypercompetition are:

Accepted Answer

A)  rising global socio-economic instability and increased inflation. 
B)  the emergence of a global economy and rapid technological change. 
C)  increased global competition and decreased tariffs. 
D)  increased availability of capital and increased competition. 
A)  rising global socio-economic instability and increased inflation. 
B)  the emergence of a global economy and rapid technological change. 
C)  increased global competition and decreased tariffs. 
D)  increased availability of capital and increased competition.

______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders.

Research shows that approximately percent of a firm's profitability is explained by the industry in which it competes, whereas percent is explained by the firm's characteristics and actions.

Who are the firm's strategic leaders? What things can a strategic leader focus on to be effective?

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, , and .

While patents may be an effective way of protecting proprietary technology, many firms competing in the electronics industry do not apply for patents to prevent competitors from utilizing the technological knowledge that would be included in the patent application.

______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones.

Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions.

An effective vision stretches and challenges people and can result in increased innovation. This is illustrated by Apple's CEO Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe").

Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk.

The resource-based view of the firm:

Resources are considered rare when they have no structural equivalent.

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n):

Explain the relationship of the strategic management process to organizational ethics.

The resource-based model argues that:

The industrial organization (I/O) model argues that:

Strategic delegation helps:

The goal of strategy implementation is to develop a permanent competitive advantage.

According to Hitt, the primary drivers of hypercompetition are:

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 1: Strategic Management and Strategic Competitiveness

______ should establish a firm's individuality and should be inspiring and relevant to all stakeholders.

Research shows that approximately ______ percent of a firm's profitability is explained by the industry in which it competes, whereas ______ percent is explained by the firm's characteristics and actions.

Who are the firm's strategic leaders? What things can a strategic leader focus on to be effective?

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ______, and ______.

While patents may be an effective way of protecting proprietary technology, many firms competing in the electronics industry do not apply for patents to prevent competitors from utilizing the technological knowledge that would be included in the patent application.

______ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones.

Managers must adopt a new mind-set that values ______ and the challenges that evolve from constantly changing conditions.

An effective vision stretches and challenges people and can result in increased innovation. This is illustrated by Apple's CEO Steve Jobs, who was known to think bigger and differently than most people ("putting a dent in the universe").

Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk.

The resource-based view of the firm:

Resources are considered rare when they have no structural equivalent.

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n):

Explain the relationship of the strategic management process to organizational ethics.

The resource-based model argues that:

The industrial organization (I/O) model argues that:

Strategic delegation helps:

The goal of strategy implementation is to develop a permanent competitive advantage.

According to Hitt, the primary drivers of hypercompetition are:

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Research shows that approximately percent of a firm's profitability is explained by the industry in which it competes, whereas percent is explained by the firm's characteristics and actions.

To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, , and .