Question 1

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.E) A) and C)
F) A) and B)

Question 2

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 3

______ 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 goalE) B) and D)
F) A) and D)

Question 4

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.E) B) and C)
F) B) and D)

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.E) A) and C)
F) C) and D)

Question 6

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 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 ("putting a dent in the universe").

Accepted Answer

A) True 
 B)False

Question 8

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; 36E) All of the above
F) A) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.E) A) and D)
F) None of the above

Question 11

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 12

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 13

Resources are considered rare when they have no structural equivalent.

Accepted Answer

A) True 
 B)False

Question 14

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.E) B) and D)
F) All of the above

Question 15

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.E) All of the above
F) B) and D)

Question 16

Strategic delegation helps:

Accepted Answer

A)   overload middle managers.
B)   executives control strategy implementation.
C)   avoid too much managerial hubris.
D)   emphasize profit maximization.E) None of the above
F) B) and D)

Question 17

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

Accepted Answer

Almost all strategic management process ...

Question 18

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.E) None of the above
F) All of the above

Question 19

______ 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)   DiffusionE) B) and C)
F) A) and B)

Question 20

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.E) All of the above
F) C) and D)

Exam 1: Strategic Management and Strategic Competitiveness

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

Correct Answer
verified

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

Correct Answer
verified

The resource-based model argues that:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Resources are considered rare when they have no structural equivalent.

Correct Answer
verified

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

Correct Answer
verified

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").

Correct Answer
verified

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

Correct Answer
verified

According to Hitt, the primary drivers of hypercompetition are:

Correct Answer
verified

The resource-based view of the firm:

Correct Answer
verified

Strategic delegation helps:

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
Almost all strategic management process ...
View Answer

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.

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified
The firm's strategic leaders include the...
View Answer

Exam 1: Strategic Management and Strategic Competitiveness

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The resource-based model argues that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Resources are considered rare when they have no structural equivalent.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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").

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to Hitt, the primary drivers of hypercompetition are:

Correct AnswerverifiedShow Answer

The resource-based view of the firm:

Correct AnswerverifiedShow Answer

Strategic delegation helps:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAlmost all strategic management process ...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe firm's strategic leaders include the...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Almost all strategic management process ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The firm's strategic leaders include the...
View Answer