Question 1

Firms use both the ______ and ______ models. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm.

Accepted Answer

A)   industry; capability
B)   I/O; resource-based
C)   competition; competency
D)   industry; competency B

Question 2

Essentially, _______ has become one of the world's largest markets with 700 million potential consumers.

Accepted Answer

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

Question 3

When a firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following statements about organizational knowledge is correct?

Accepted Answer

A)   Knowledge is an intangible resource.
B)   The importance of knowledge is increasing.
C)   The value of knowledge as a proportion of shareholder value is increasing.
D)   All of these options are correct.

Question 5

The goal of the organization's ______ is to point the firm in the direction of where it would like to be in the years to come.

Accepted Answer

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

Question 6

______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes.

Accepted Answer

A)   Strategic flexibility
B)   Continuous learning
C)   Knowledge
D)   The Internet

Question 7

The rapid rate of technological diffusion has increased the competitive benefits of patents.

Accepted Answer

A) True 
 B)False

Question 8

The firm's ______ provide the foundation for choosing one or more ______ and deciding how to implement them.

Accepted Answer

A)   analyses; strengths
B)   abilities; strengths
C)   analyses; strategies
D)   abilities; strategies

Question 9

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

Accepted Answer

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

Question 10

Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web browser software.

Accepted Answer

A) True 
 B)False

Question 11

Relative power is the most critical element for prioritizing the demands of stakeholders.

Accepted Answer

A) True 
 B)False

Question 12

The "liability of foreignness" is the:

Accepted Answer

A)   inability of most U.S. managers to truly comprehend foreign cultures.
B)   political disadvantage that U.S. firms have when doing business abroad.
C)   overall risk of participating outside a firm's domestic country when entering global competition.
D)   preference for "buying local," which always puts foreign firms at a disadvantage when competing in the U.S. market.

Question 13

Developed countries still have major advantages in their access to information technology when compared to emerging economies because of the significant cost of the infrastructure needed for computing power.

Accepted Answer

A) True 
 B)False

Question 14

The culmination of the strategic management process is:

Accepted Answer

A)   performance.
B)   strategy implementation.
C)   strategy formulation.
D)   analysis.

Question 15

?Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices.

Accepted Answer

A) True 
 B)False

Question 16

Hypercompetition is a characteristic of the current competitive landscape. Define hypercompetition and identify its primary drivers. How can organizations survive in a hypercompetitive environment?

Accepted Answer

The answer of Hypercompetition is a characteristic of the current...

Question 17

Describe an organization's various stakeholders and their different interests. Under what condition can the firm most easily satisfy all stakeholders? If the firm cannot satisfy all stakeholders, which ones must it satisfy in order to survive?

Accepted Answer

The answer of Describe an organization's various stakeholders and their...

Question 18

Describe and discuss the resource-based model of above-average returns.

Accepted Answer

The answer of Describe and discuss the resource-based model of...

Question 19

The new CEO of Opacity Enterprises is determined to make the long-established firm strategically flexible. The CEO feels that the employees of the company have the ability, training, and resources to engage in continuous learning.  The CEO must encourage ambidextrous learning, absorbing new knowledge and building incremental knowledge.

Accepted Answer

A) True 
 B)False

Question 20

According to Hitt, the final responsibility for forming the organization's mission lies with the:

Accepted Answer

A)   CEO.
B)   top-management team.
C)   employees.
D)   organization's stakeholders.

Exam 1: Strategic Management and Strategic Competitiveness

Firms use both the and models. In fact, these models complement each other in that one focuses outside the firm while the other focuses inside the firm.

Essentially, _______ has become one of the world's largest markets with 700 million potential consumers.

When a firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders.

Which of the following statements about organizational knowledge is correct?

The goal of the organization's ______ is to point the firm in the direction of where it would like to be in the years to come.

______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes.

The rapid rate of technological diffusion has increased the competitive benefits of patents.

The firm's provide the foundation for choosing one or more and deciding how to implement them.

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

Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web browser software.

Relative power is the most critical element for prioritizing the demands of stakeholders.

The "liability of foreignness" is the:

Developed countries still have major advantages in their access to information technology when compared to emerging economies because of the significant cost of the infrastructure needed for computing power.

The culmination of the strategic management process is:

?Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices.

Hypercompetition is a characteristic of the current competitive landscape. Define hypercompetition and identify its primary drivers. How can organizations survive in a hypercompetitive environment?

Describe an organization's various stakeholders and their different interests. Under what condition can the firm most easily satisfy all stakeholders? If the firm cannot satisfy all stakeholders, which ones must it satisfy in order to survive?

Describe and discuss the resource-based model of above-average returns.

According to Hitt, the final responsibility for forming the organization's mission lies with the: