Question 1

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

Accepted Answer

A)   European Union
B)   The United States
C)   China
D)   JapanE) A) and C)
F) All of the above

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Who are the firm's strategic leaders? How do strategic leaders predict the profit outcomes of different strategic decisions?

Accepted Answer

The firm's strategic leaders include the...

Question 4

A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.

Accepted Answer

A)   strategic competitiveness
B)   a permanently sustainable competitive advantage
C)   substantial returns
D)   legal and ethical core valuesE) B) and C)
F) A) and D)

Question 5

Customers, suppliers, unions, and local governments are examples of capital market stakeholders.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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 risks of participating outside a firm's domestic country when entering global competition.
D)   strong cultural preference for "buying local," which puts foreign firms at a disadvantage when competing in the U.S. market.E) C) and D)
F) A) and B)

Question 8

The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Which of the following actions by the CEO would be most consistent with this need?

Accepted Answer

A)   ensuring that all current unique knowledge of the firm is protected by patents
B)   planning extensive employee training and hiring educated and experienced employees.
C)   investing in sophisticated databases in relevant knowledge areas
D)   establishing a system of organizational intelligence gatheringE) All of the above
F) A) and B)

Question 9

If McDonald's were to map the profit pool in the quick-service restaurant industry, it would do all of the following EXCEPT

Accepted Answer

A)   Define the industry's boundaries and size.
B)   Estimate the profit potential in each part of the value chain.
C)   Focus on unattractive industries ignored by competitors.
D)   Select the strategy to use where the largest profit pools are located.E) None of the above
F) A) and B)

Question 10

Product market stakeholders include

Accepted Answer

A)   suppliers.
B)   shareholders.
C)   employees.
D)   the firm's chief executive officer.E) B) and C)
F) A) and D)

Question 11

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 decreasing tariffs.
D)   increased availability of capital and increased competition.E) All of the above
F) C) and D)

Question 12

Six years ago, Colette Smith founded a successful catering company that specializes in providing a wide assortment of miniature cheesecakes for corporate and social events. Although Ms. Smith is no longer active in the actual production of the cheesecakes, she continues as president of the catering company. Ms. Smith could be considered a strategic leader of this firm.

Accepted Answer

A) True 
 B)False

Question 13

The development of a firm's mission typically involves which of the following?

Accepted Answer

A)   Only the CEO.
B)   Only top managers.
C)   The CEO and top managers.
D)   None of the these.E) A) and D)
F) A) and C)

Question 14

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

Hypercompetition is a condition of rapid...

Question 15

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) C) and D)
F) A) and B)

Question 16

The strategic management process is

Accepted Answer

A)   a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm.
B)   a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment.
C)   a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization's resources.
D)   the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.E) None of the above
F) A) and B)

Question 17

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

Accepted Answer

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

Question 18

When the 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

Question 19

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 choices are correct.E) A) and B)
F) None of the above

Question 20

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 competitor environment.
C)   calls for firms to focus on their homogeneous capabilities to compete against their rivals.
D)   suggests that vision and mission are closely linked to sustainable competitive advantage.E) A) and C)
F) A) and B)

Exam 1: Strategic Management and Strategic Competitiveness

A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.

Correct Answer
verified

The final responsibility for forming the organization's mission lies with the

Correct Answer
verified

The primary drivers of hypercompetition are

Correct Answer
verified

The resource-based view of the firm

Correct Answer
verified

If McDonald's were to map the profit pool in the quick-service restaurant industry, it would do all of the following EXCEPT

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

Customers, suppliers, unions, and local governments are examples of capital market stakeholders.

Correct Answer
verified

Product market stakeholders include

Correct Answer
verified

The strategic management process is

Correct Answer
verified

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

Correct Answer
verified

The "liability of foreignness" is the

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Which of the following actions by the CEO would be most consistent with this need?

Correct Answer
verified

Which of the following statements about organizational knowledge is correct?

Correct Answer
verified

When the 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.

Correct Answer
verified

Who are the firm's strategic leaders? How do strategic leaders predict the profit outcomes of different strategic decisions?

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

The development of a firm's mission typically involves which of the following?

Correct Answer
verified

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

Correct Answer
verified
Hypercompetition is a condition of rapid...
View Answer

Exam 1: Strategic Management and Strategic Competitiveness

A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.

Correct AnswerverifiedShow Answer

The final responsibility for forming the organization's mission lies with the

Correct AnswerverifiedShow Answer

The primary drivers of hypercompetition are

Correct AnswerverifiedShow Answer

The resource-based view of the firm

Correct AnswerverifiedShow Answer

If McDonald's were to map the profit pool in the quick-service restaurant industry, it would do all of the following EXCEPT

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

Customers, suppliers, unions, and local governments are examples of capital market stakeholders.

Correct AnswerverifiedShow Answer

Product market stakeholders include

Correct AnswerverifiedShow Answer

The strategic management process is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The "liability of foreignness" is the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The CEO of Ridgeway, Inc., realizes that the company's survival depends on developing and acquiring knowledge. Which of the following actions by the CEO would be most consistent with this need?

Correct AnswerverifiedShow Answer

Which of the following statements about organizational knowledge is correct?

Correct AnswerverifiedShow Answer

When the 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.

Correct AnswerverifiedShow Answer

Who are the firm's strategic leaders? How do strategic leaders predict the profit outcomes of different strategic decisions?

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

The development of a firm's mission typically involves which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedHypercompetition is a condition of rapid...View AnswerShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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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

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Hypercompetition is a condition of rapid...
View Answer