Question 1

The increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders is defined as:

Accepted Answer

A)  hypercompetition. 
B)  boundaryless retailing. 
C)  strategic intensity. 
D)  globalization.

Question 2

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

Accepted Answer

The answer of Who are the firm's strategic leaders? What...

Question 3

Even for companies capable of succeeding in global markets, it is critical that they:

Accepted Answer

A)  remain committed to and strategically competitive in their domestic market. 
B)  introduce many new products immediately after entering a new market. 
C)  acquire a local competitor in each significant foreign market. 
D)  develop good negotiating skills in order to take advantage of local suppliers in the international market.

Question 4

It is important to emphasize that primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have __________ dimensions.

Accepted Answer

A)  ethical 
B)  local 
C)  political 
D)  global

Question 5

Which of the following statements is MOST consistent with the I/O view? Performance of a firm is most directly attributable to:

Accepted Answer

A)  the power of the financial market stakeholders. 
B)  the resources the firm possesses. 
C)  the profitability of the industry in which the firm competes. 
D)  hypercompetition within the industry.

Question 6

Above-average returns are returns 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 7

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.

Accepted Answer

A) True 
 B)False

Question 8

What are the primary aspects of the strategic management process? (Note: You may reference specific chapters from the text in formulating your response.)

Accepted Answer

The answer of What are the primary aspects of the...

Question 9

Sandy, a line manager on the production floor at Oakway Industries, is an entry-level manager.Sandy has a strong commitment to the Oakway's vision and mission.She has good relationships with workers on her line as well as with employees throughout Oakway.Sandy is able to make decisions on the fly to keep the line moving, and other line managers often ask for her help in troubleshooting different situations.Which of the following best characterizes Sandy?

Accepted Answer

A)  Sandy is a strategic leader. 
B)  Sandy is assuming inappropriate responsibility considering her position in the firm. 
C)  Sandy is likely to be promoted into an upper-management position where she would become a strategic leader. 
D)  If Sandy were using these same skills to determine strategy, perhaps in the finance department rather than on the production line, she would be considered a strategic leader.

Question 10

Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result from a particular investment.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are assumptions of the industrial organization (I/O) model EXCEPT:

Accepted Answer

A)  organizational decision makers are assumed to be rational and committed to acting in the firm's best interests. 
B)  resources to implement strategies are firm-specific and attached to firms over the long-term. 
C)  the external environment is assumed to impose pressures and constraints that determine the strategies that would result in above-average returns. 
D)  most firms competing within an industry or within a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources.

Question 12

When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has created a(n):

Accepted Answer

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

Question 13

If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision making.

Accepted Answer

A) True 
 B)False

Question 14

Greenleaf Property Management has been earning below-average returns for the last three years.Which of the following statements is true?

Accepted Answer

A)  Greenleaf will be able to satisfy its multiple stakeholders easily as long as the stakeholders are committed to the strategic mission of the firm. 
B)  Greenleaf 's current goal should be to satisfy each group's minimal expectations. 
C)  Greenleaf will need to prioritize the demands of its stakeholders to maximize the interests of all stakeholders. 
D)  Greenleaf will not be able to minimally satisfy all stakeholders.

Question 15

In 2018, __________ was the second-largest economy in the world, with a value of $14 trillion.

Accepted Answer

A)  the United States 
B)  the European Union 
C)  Japan 
D)  China

Question 16

The Princeton Alliance Church states on its website that "PAC exists to help you live life to the fullest by knowing God, developing community and bringing hope." This pronouncement is MOST precisely a statement of organizational:

Accepted Answer

A)  values. 
B)  structure. 
C)  vision. 
D)  culture.

Question 17

Which of the following statements about a vision and mission is true?

Accepted Answer

A)  A firm's vision is more concrete than its mission. 
B)  The mission points the firm in the direction of where it would like to be in the years to come. 
C)  A vision statement should be clearly tied to the conditions in the firm's external environment and internal organization. 
D)  The mission deals more directly with capital markets.

Question 18

The industrial organization (I/O) model is grounded in:

Accepted Answer

A)  anthropology. 
B)  psychology. 
C)  economics. 
D)  accounting.

Question 19

Stakeholders are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission.

Accepted Answer

A) True 
 B)False

Question 20

RelTech is a firm in the electronics industry.It could protect its proprietary technology through patents.However, it likely will not apply for patents to keep competitors from gaining access to the technological knowledge included in the patent application.

Accepted Answer

A) True 
 B)False

Exam 1: Strategic Management and Strategic Competitiveness

The increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders is defined as:

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

Even for companies capable of succeeding in global markets, it is critical that they:

It is important to emphasize that primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have __________ dimensions.

Which of the following statements is MOST consistent with the I/O view? Performance of a firm is most directly attributable to:

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

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.

What are the primary aspects of the strategic management process? (Note: You may reference specific chapters from the text in formulating your response.)

Risk in terms of financial returns reflects an investor's uncertainty about the economic gains or losses that will result from a particular investment.

All of the following are assumptions of the industrial organization (I/O) model EXCEPT:

When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has created a(n) :

If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision making.

Greenleaf Property Management has been earning below-average returns for the last three years.Which of the following statements is true?

In 2018, __________ was the second-largest economy in the world, with a value of $14 trillion.

The Princeton Alliance Church states on its website that "PAC exists to help you live life to the fullest by knowing God, developing community and bringing hope." This pronouncement is MOST precisely a statement of organizational:

Which of the following statements about a vision and mission is true?

The industrial organization (I/O) model is grounded in:

Stakeholders are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission.

RelTech is a firm in the electronics industry.It could protect its proprietary technology through patents.However, it likely will not apply for patents to keep competitors from gaining access to the technological knowledge included in the patent application.