Quiz
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Question 1 (1 point)
Strategy formulation is a part of strategic management that focuses on enacting the
specific actions that a firm uses to achieve strategic goals and objectives.
Question 1 options:
True
False
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Question 2 (1 point)
A firm that is characterized by multi-market competition encounters the same
competitors in many different markets.
Question 2 options:
True
False
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Question 3 (1 point)
Analyzing the external environment involves identifying core capabilities and
competencies that are the basis of a firm's competitive advantage.
Question 3 options:
True
False
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Question 4 (1 point)
Research referred to in the text suggests that U.S. managers are better at strategy
implementation than strategy formulation.
Question 4 options:
True
False
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Question 5 (1 point)
Business-level strategies are focused on developing and pursuing goals and objectives
within specific markets or industry segments.
Question 5 options:
True
False
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Question 6 (1 point)
Stakeholders who are most affected by firm decisions often have a great deal of
influence over the decisions.
Question 6 options:
True
False
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Question 7 (1 point)
Vision is a simple statement or understanding of what the firm will be in the future.
Question 7 options:
True
False
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Question 8 (1 point)
The terms leadership and strategic leadership may be used interchangeably.
Question 8 options:
True
False
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Question 9 (1 point)
Success involves aligning the firm’s internal resources with its strategy, environment
and vision.
Question 9 options:
True
False
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Question 10 (1 point)
The top-management team is an important stakeholder group because of their ultimate
role in strategy implementation.
Question 10 options:
True
False
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Question 11 (1 point)
Patents are resources that are difficult to imitate.
Question 11 options:
True
False
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Question 12 (1 point)
Tradeoff protection involves trading actions between support and primary value-chain
activities.
Question 12 options:
True
False
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Question 13 (1 point)
All types of organizational resources and capabilities create above-normal profits.
Question 13 options:
True
False
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Question 14 (1 point)
A rare resource is one that is scarce relative to demand.
Question 14 options:
True
False
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Question 15 (1 point)
A sustained competitive advantage contributes to above-normal profits for extended
periods of time.
Question 15 options:
True
False
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Question 16 (1 point)
Political, technological, and environmental issues are part of the macro environment.
Question 16 options:
True
False
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Question 17 (1 point)
According to the external perspective of competitive advantage, the appropriate
strategy and key assets are dictated by firm-specific characteristics.
Question 17 options:
True
False
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Question 18 (1 point)
Which of the following types of firms would make use of corporate-level strategies?
Question 18 options:
Firms that possess superior capabilities
Firms that compete in many diversified or unrelated businesses and industries
Firms that compete in only a single business or market segment
Firms that choose to compete in an attractive industry
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Question 19 (1 point)
Which statement about the dynamic perspective is true?
Question 19 options:
Competitive advantage is determined by industry attractiveness
Competitive advantage is determined by the structure of the industry.
A firm's current market position is an accurate predictor of its future performance.
The current market position of a firm is NOT an accurate predictor of its future
performance.
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Question 20 (1 point)
Which of the following is a major difference between business-level and corporate-level
strategies?
Question 20 options:
one focuses more on cash flow maximization
one has a broader focus than the other
one is more focused on profit maximization
one is more focused on quality and efficiency
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Question 21 (1 point)
Which of the following terms refers to how organizations execute their strategy?
Question 21 options:
implementation
innovation
strategic analysis
strategy development
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Question 22 (1 point)
Which of the following is a major source of competitive advantage?
Question 22 options:
investing in extending technology to suppliers
developing unique software
acquiring scarce resources
all of the above
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Question 23 (1 point)
Which of the following is an important external factor for determining the firm's
competitive advantage?
Question 23 options:
selecting the most attractive industry in which to compete
proper utilization of the firm's human resources
developing the firm's unique resources and capabilities
identifying the firm's key competitive advantage
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Question 24 (1 point)
Which of the following defines strategy?
Question 24 options:
how a firm achieves its objectives
the task of top managers
the source of competitive advantage
how a firm acquires resources
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Question 25 (1 point)
Which of the following approaches argues that the structure of industries determines
whether the firm achieves competitive advantage?
Question 25 options:
the internal perspective
the general perspective
the external perspective
the task perspective
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Question 26 (1 point)
The decision-making bias in which people are willing to commit additional resources to
a failing course of action is called ________.
Question 26 options:
escalation of commitment
illusion of optimism
self-serving fairness bias
illusion of control
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Question 27 (1 point)
Which of the following best describes the leader role of negotiator?
Question 27 options:
The executive designs the firm's strategy
The executive effectively allocates resources.
The executive makes decisions concerning non-routine transactions with other
organizations.
The executive deals with unforeseen internal and external conflicts.
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Question 28 (1 point)
Relying on a conventional conception of another group based on some common
characteristic is called ________.
Question 28 options:
cultural bias
ethnocentrism
stereotyping
racial bias
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Question 29 (1 point)
Which of the following is not one of the five elements of the strategy diamond?
Question 29 options:
economic logic
Vehicles
Staging
Vision
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Question 30 (1 point)
Which of the following is a financial performance metric?
Question 30 options:
sales growth
Product quality
employee turnover
new products released
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Question 31 (1 point)
Activities performed for a company by people other than its full-time employees is
________.
Question 31 options:
the value chain
capabilities
outsourcing
distinctive competence
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Question 32 (1 point)
Processes in which a firm integrates or upgrades resources and capabilities in order to
strategically respond to environmental changes are called ________.
Question 32 options:
core capabilities
tradeoffs
dynamic capabilities
distinctive competencies
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Question 33 (1 point)
Which of the following is not a primary activity on the value chain?
Question 33 options:
service
inbound logistics
embryonic
Marketing
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Question 34 (1 point)
It is easier for a(n) ________ firm to imitate a value-chain configuration than a(n)
________ firm.
Question 34 options:
new; existing
existing; new
foreign; local
large; small
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Question 35 (1 point)
In the decline phase of the industry life cycle, ________.
Question 35 options:
there is a proliferation of products served
the market expands beyond the niche
there is product and market contraction
participants emphasize problem solving
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Question 36 (1 point)
In the mature phase of the industry life cycle, ________.
Question 36 options:
there is a proliferation of products served
the market expands beyond the niche
participants emphasize problem solving
there is product and market contraction
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Question 37 (1 point)
Buyers may have more bargaining power when ________.
Question 37 options:
there are few sellers
there are high switching costs
products are standardized
there is a threat of forward integration
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Question 38 (1 point)
Examples of government pressures favoring industry globalization are favorable trade
policies and ________.
Question 38 options:
global competitors
favorable logistics
common technological standards
arbitrage opportunities
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Question 39 (1 point)
The objective of mapping strategic groups is to ________.
Question 39 options:
identify critical stakeholders
identify complementors
identify suppliers
identify direct competitors
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Question 40 (1 point)
Which of the following is not a factor found in the macro environment?
Question 40 options:
social
managerial
technological
political
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Question 41 (1 point)
All of the following are examples of economic factors except _______.
Question 41 options:
inflation rates
birth rates
unemployment rates
interest rates
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Question 42 (1 point)
According to the text, the first step in predicting the behaviors of competitors is
________.
Question 42 options:
to determine the companies' industry assumptions
to determine if the companies are publicly held
to understand the companies' current strategies
to understand the companies' objectives
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Question 43 (1 point)
A subset of firms that compete against each other more intensely than with other firms
in the industry are called ________.
Question 43 options:
stakeholders
suppliers
complementors
strategic groups
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Question 44 (1 point)
The PESTEL analysis is a tool for assessing the political, economic, technological,
environmental, and ________ contexts in which a firm operates.
Question 44 options:
logistical
longitudinal
long-term
legal
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Question 45 (1 point)
Which of the following is characteristic of an industry that is experiencing
commoditization?
Question 45 options:
The products are becoming more unique.
The products are competing more on price.
The products are not technological in nature.
The products are becoming more differentiated.
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Question 46 (1 point)
Some industries are dynamic simply because of ________.
Question 46 options:
the number of competitors
the five forces
the market concentration
the rapid pace of change
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Question 47 (1 point)
Buyers have power when ________.
Question 47 options:
products are highly regulated
buyers are united as a group and therefore have a stronger negotiating position
the focal industry is concentrated
suppliers have switching costs
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Question 48 (1 point)
Several factors influence the threat from new entrants including economies of scale,
brand identity, and ________.
Question 48 options:
price sensitivity
supplier concentration
switching costs
buyer volume
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Question 49 (1 point)
When a firm in one industry provides products that tend to increase sales in another
industry, it is called a ________.
Question 49 options:
rival
new entrant
supplier
complementor
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Question 50 (1 point)
Perfect competition is characterized by perfect information, no barriers to entry, and
________.
Question 50 options:
limited sellers
limited buyers
no monopolies
very diverse products
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