Question 1

Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape.

Accepted Answer

A) True 
 B)False

Question 2

Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in the past.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are resources of an organization EXCEPT:

Accepted Answer

A)   an hourly production employee's ability to catch subtle quality defects in products.
B)   oil drilling rights in a promising region.
C)   weak competitors in the industry.
D)   a charity's board of directors of experienced executives.

Question 4

Product market stakeholders generally are satisfied when:

Accepted Answer

A)   a firm's profit margin reflects at least a balance between the returns to capital market stakeholders and the returns in which they share.
B)   a firm's profit margin yields an above-average return to its capital market stakeholders.
C)   the interests of the firm's organizational stakeholders have been maximized.
D)   the interests of all stakeholders have been at least minimally satisfied.

Question 5

An effective vision statement must specify the industry in which a company will operate.

Accepted Answer

A) True 
 B)False

Question 6

A forward-looking analysis suggests that markets in __________ will yield significant opportunities, as their economies, while currently not the largest, are expected to exceed the size of the U.S.economy by the year 2050.

Accepted Answer

A)   the European Union
B)   Germany and India
C)   India and China
D)   China and Japan

Question 7

GlenOak Corp.is planning to open a second corporate office in a new city.The legal team at GlenOak Corp.is studying the various state and local regulations that control its industry in order to narrow down the possible sites to those which would be most conducive to success.What type of stakeholder is being focused at this stage?

Accepted Answer

A)   Host communities, which are product market stakeholders
B)   Shareholders, which are capital market stakeholders
C)   Primary customers, which are product market stakeholders
D)   Managers, which are organizational stakeholders A

Question 8

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

Accepted Answer

A)   key factor in success is choosing the correct industry in which to compete.
B)   firm's internal resources and capabilities represent the foundation for development of a value-creating strategy.
C)   key to earning above-average returns is strategic flexibility.
D)   internal structure of the organization must match the industry in which it competes for it to earn above-average returns on investment.

Question 9

For a diversified firm, corporate-level strategy is concerned with:

Accepted Answer

A)   operating each individual business under the corporate umbrella.
B)   determining how each functional department of the firm will operate.
C)   determining the businesses in which the company intends to compete as well as how to manage its different businesses.
D)   coordinating the vision and mission of each subsidiary firm.

Question 10

Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is:

Accepted Answer

A)   maximizing the firm's return on investment.
B)   receiving the highest-quality services in the industry at any price.
C)   obtaining reliable products at the lowest possible prices.
D)   increasing the profitability of the firm.

Question 11

Organizational culture refers to:

Accepted Answer

A)   an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
B)   the complex set of ideologies, symbols, and core values that are shared throughout the firm.
C)   a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
D)   how a firm acquires, uses, and develops its various resources and capabilities.

Question 12

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 of the following statements 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. B

Question 13

New markets created by the technologies underlying the development of products such as iPods, iPads, and Wi-Fi are a result of:

Accepted Answer

A)   disruptive technologies.
B)   global competition.
C)   knowledge intensity.
D)   hypercompetition.

Question 14

Research shows that a greater percentage of a firm's profitability is explained by the I/O model rather than the resource-based model.

Accepted Answer

A) True 
 B)False

Question 15

Globalization has led to:

Accepted Answer

A)   lower operational efficiency, as firms must transport raw materials and finished goods farther.
B)   increasing loyalty of customers for products made domestically.
C)   declining returns from investment in research and development.
D)   higher performance standards in competitive dimensions, including quality and cost. D

Question 16

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

Question 17

The strategic leader's work is characterized by:

Accepted Answer

A)   ambiguous decision situations.
B)   a willingness to unify stakeholders through skillful manipulation.
C)   an ability to identify solutions to long-range problems.
D)   concentration on the practical day-to-day aspects of the organization's operations.

Question 18

Above-average returns are:

Accepted Answer

A)   higher profits than the firm earned the previous year.
B)   higher profits than the industry averaged over the last 10 years.
C)   profits in excess of what an investor expects to earn from a historical pattern of performance of the firm.
D)   returns in excess of what an investor expects to earn from other investments with a similar level of risk.

Question 19

Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders.

Accepted Answer

A) True 
 B)False

Question 20

Research shows that approximately _____ percent of a firm's profitability is explained by the industry in which it chooses to compete, whereas _____ percent is explained by the firm's characteristics and actions.

Accepted Answer

A)   90; 10
B)   60; 40
C)   36; 20
D)   20; 36

Exam 1: Strategic Management and Strategic Competitiveness

Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape.

Correct Answer
verified

Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in the past.

Correct Answer
verified

All of the following are resources of an organization EXCEPT:

Correct Answer
verified

Product market stakeholders generally are satisfied when:

Correct Answer
verified

An effective vision statement must specify the industry in which a company will operate.

Correct Answer
verified

A forward-looking analysis suggests that markets in __________ will yield significant opportunities, as their economies, while currently not the largest, are expected to exceed the size of the U.S.economy by the year 2050.

Correct Answer
verified

Correct Answer
verified
A

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

Correct Answer
verified

For a diversified firm, corporate-level strategy is concerned with:

Correct Answer
verified

Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is:

Correct Answer
verified

Organizational culture refers to:

Correct Answer
verified

Correct Answer
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B

New markets created by the technologies underlying the development of products such as iPods, iPads, and Wi-Fi are a result of:

Correct Answer
verified

Research shows that a greater percentage of a firm's profitability is explained by the I/O model rather than the resource-based model.

Correct Answer
verified

Globalization has led to:

Correct Answer
verified
D

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

Correct Answer
verified

The strategic leader's work is characterized by:

Correct Answer
verified

Above-average returns are:

Correct Answer
verified

Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders.

Correct Answer
verified

Research shows that approximately _ percent of a firm's profitability is explained by the industry in which it chooses to compete, whereas _ percent is explained by the firm's characteristics and actions.

Correct Answer
verified

Exam 1: Strategic Management and Strategic Competitiveness

Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape.

Correct AnswerverifiedShow Answer

Economies of scale and huge advertising budgets are more effective in the new competitive landscape than they were in the past.

Correct AnswerverifiedShow Answer

All of the following are resources of an organization EXCEPT:

Correct AnswerverifiedShow Answer

Product market stakeholders generally are satisfied when:

Correct AnswerverifiedShow Answer

An effective vision statement must specify the industry in which a company will operate.

Correct AnswerverifiedShow Answer

A forward-looking analysis suggests that markets in __________ will yield significant opportunities, as their economies, while currently not the largest, are expected to exceed the size of the U.S.economy by the year 2050.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

For a diversified firm, corporate-level strategy is concerned with:

Correct AnswerverifiedShow Answer

Product market stakeholders include the firm's customers, and the principal concern of this stakeholder group is:

Correct AnswerverifiedShow Answer

Organizational culture refers to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

New markets created by the technologies underlying the development of products such as iPods, iPads, and Wi-Fi are a result of:

Correct AnswerverifiedShow Answer

Research shows that a greater percentage of a firm's profitability is explained by the I/O model rather than the resource-based model.

Correct AnswerverifiedShow Answer

Globalization has led to:

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

The strategic leader's work is characterized by:

Correct AnswerverifiedShow Answer

Above-average returns are:

Correct AnswerverifiedShow Answer

Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders.

Correct AnswerverifiedShow Answer

Research shows that approximately _____ percent of a firm's profitability is explained by the industry in which it chooses to compete, whereas _____ percent is explained by the firm's characteristics and actions.

Correct AnswerverifiedShow Answer

Correct Answer
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A

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B

Correct Answer
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D

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

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 chooses to compete, whereas _ percent is explained by the firm's characteristics and actions.

Correct Answer
verified