58 free test bank for strategic management 5th asia pacific edition

27 Free Test Bank for Strategic Management 5th Asia Pacific Edition by Hanson Multiple Choice Questions 22 Free Test Bank True – False Questions 9 Free Test Bank Free Text Questions 27

27 Free Test Bank for Strategic Management 5th Asia Pacific Edition

by Hanson Multiple Choice Questions

22 Free Test Bank True – False Questions

9 Free Test Bank Free Text Questions

27 Free Test Bank for Strategic Management 5th Asia Pacific Edition by Hanson Multiple Choice Questions

A vision statement should be clearly tied to:

1 A the stakeholders’ expectations on return on investment

2 B the firm’s unique resources and capabilities

3 C the conditions of the industry in which the firm operates

4 D the conditions in the firm’s external and internal environments

A statement that articulates the ideal description of an

organisation and gives shape to its intended future is a:

1 A strategic mission

2 B strategic vision

3 C strategic idea

4 D strategic objective

Strategic leaders are:

1 A the CEO and top-level managers of a firm

2 B people who are affected by a firm’s performance and who have claims on its performance

3 C the individuals and groups who have invested capital in a firm in the

expectation of earning positive return on their investment

4 D people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission

A strategic mission:

1 A is based on the application of strategic vision

2 B is a firm’s attempt to establish new businesses

3 C does not limit the firm by specifying the industry in which the firm intends to compete

4 D is developed before a firm develops its strategic intent

To be strategically flexible on a continuing basis and to gain the competitive benefits of such flexibility, a firm has to

develop the capacity to:

1 A understand customer needs

2 B learn

3 C work closely with suppliers

4 D observe competitors carefully

The work of effective strategic leaders is characterised by:

1 A ambiguous decision situations

2 B high income levels

3 C a high level of certainty in the organisation

4 D a lack of ability to affect the firm’s direction

A business-level strategy describes:

1 A the businesses in which a company intends to compete

2 B all policies and procedures used in functional departments

3 C a firm’s actions to exploit its competitive advantage over rivals

4 D a firm’s resources, intent and mission

Which of the following is not a step in identifying profit

pools?

1 A Define the pool’s boundaries.

2 B Estimate the pool’s overall size.

3 C Estimate the pool’s effect on current activities.

4 D Estimate the size of the value-chain activity in the pool.

5 E Reconcile the calculations.

Which of the following is not a characteristic of

hypercompetition?

1 A competition to generate more customers from underdeveloped markets

2 B competition to protect or invade established product or geographic markets

3 C competition to create new know-how and establish first-mover advantage

4 D price-quality positioning

Returns are often measured by:

1 A the level of innovation within the organisation

2 B the firm’s stock price

3 C the number of industries in which the firm participates

4 D the number of customers the organisation serves

Organisational stakeholders are usually satisfied when:

1 A their return on investment has been maximised

2 B customers pay the highest sustainable price for the goods and services they receive

3 C companies are willing to be longer-term employers

4 D companies are growing and helping individuals develop their skills

The strategic management process is:

1 A a set of activities that is guaranteed to prevent organisational failure

2 B a process concerned with a firm’s resources, capabilities and competencies, but not with conditions in its external environment

3 C a set of activities that have not been used successfully in the not-for-profit sector

4 D a dynamic process involving the full set of commitments, decisions and actions related to a firm

A firm has a competitive advantage when:

1 A the value-creating strategy is in the formulation stage

2 B competitors are simultaneously implementing the strategy

3 C competitors are not able to duplicate the strategy

4 D average returns are earned by the company

The resource-based view of the firm:

1 A suggests that resources, rather than capabilities, are more closely linked with sustainable competitive advantage

2 B argues that the industry environment has a stronger influence on a firm’s ability

to implement strategies successfully than the competitor environment

3 C calls for firms to focus on their homogeneous skills to compete against their rivals

4 D assumes that resources may not be mobile across firms

Capital market stakeholders include:

1 A unions

2 B employees

3 C shareholders

4 D government regulators

The I/O model argues that:

1 A internal resources and capabilities represent the foundation for the

development of a value-creating strategy

2 B firms should seek to maximise their returns by structuring their organisation in a manner consistent with the most efficient producers in any given industry

3 C the conditions and characteristics of the external environment are the primary inputs to and determinants of strategy

4 D internationalisation in certain industries will lead to globalisation

Organisational culture is:

1 A an appreciation for the arts in the organisation

2 B an organisation’s ability to act in a responsible manner towards all of its

employees

3 C the amount of a firm’s social activity in the community

4 D the complex set of ideologies, symbols and core values shared by most

members of the organisation

Generally speaking, product market stakeholders are

satisfied when:

1 A a firm’s profit margin yields the lowest return to capital market stakeholders that

is acceptable to them

2 B a firm’s profit margin yields an above-average return to its capital market stakeholders

3 C the interests of a firm’s organisational stakeholders have been maximised

4 D a firm grounds its operations in the principles of the resource-based view of the firm rather than the principles of the I/O model

Which of the following is not a risk of globalisation?

1 A the amount of time required to learn how to compete in unfamiliar markets

2 B increased diversity in the workforce

3 C over-diversification internationally beyond capabilities to manage operations

4 D new rules of law and governance

Which of the following are the three key categories of firm resources?

1 A Physical, knowledge and organisational

2 B Physical, human and organisational

3 C Physical, technological and human

4 D Physical, technological and reputational

Strategic management and choices made when designing and using the strategic management process are driven by the:

1 A need to attain returns

2 B pursuit of competitiveness

3 C actions of employees

4 D firm’s strategic standards

Product market stakeholders include a firm’s customers The principal concern of this stakeholder group is:

1 A maximising the firm’s return on investment

2 B providing a stimulating career environment for employees

3 C obtaining reliable products at the lowest possible price

4 D increasing the profitability of the firm

The resource-based model of the firm contends that:

1 A resources that are valuable, rare, costly to imitate and non-substitutable form the basis of a firm’s competitive advantage

2 B the key to competitive success is the structure of the industry in which a firm competes

3 C resources have the potential to be the basis of sustained competitive

advantage

4 D competencies are not a source of potential competitive advantage

Determining the boundaries of an industry has become challenging in the twenty-first-century competitive

landscape because:

1 A firms can have multi-use resources at their disposal

2 B firms have become single-entity enterprises

3 C managers have adopted a new mind-set to capture the realities of the

landscape

4 D firms transfer their core competencies across geographic borders

What has a firm achieved when it successfully formulates and implements a value-creating strategy?

1 A Strategic competitiveness

2 B A permanently sustainable competitive advantage

3 C Substantial returns

4 D Average returns

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

1 A operating each individual business

2 B determining how each functional department of the firm will operate

3 C determining in which businesses to compete and how resources will be allocated between businesses

4 D maximising product distribution over rivals

Research findings support the I/O model, in that

approximately of a firm’s profitability can be

explained by the industry in which it chooses to compete However, this research also shows that of the

variance in profitability could be attributed to the firm’s

characteristics and actions

1 A 24 per cent; 40 per cent

2 B 22 per cent; 42 per cent

3 C 20 per cent; 36 per cent

4 D 26 per cent; 38 per cent

22 Free Test Bank for Strategic Management 5th Asia Pacific Edition by Hanson True - False Questions

Strategic flexibility is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment

1 True

2 False

The resource-based model assumes that differences in

resources and capabilities are the basis of a competitive advantage

1 True

2 False

A firm’s mission tends to be enduring while its vision can change in view of changing environmental conditions

1 True

2 False

A profit pool includes the total profits earned in an industry

at all points along the value chain

1 True

2 False

A firm has a competitive advantage when it implements a strategy that competitors are able to duplicate or find costly

to imitate

1 True

2 False

Employees, managers and non-managers are examples of organisational stakeholders

1 True

2 False

Strategic competitiveness is achieved when a firm

successfully formulates and implements a value-creating strategy

1 True

2 False

Organisational stakeholders are a firm’s internal resources, capabilities and core competencies that are used to

accomplish what may at first appear to be unattainable goals

in the competitive environment

1 True

2 False

Corporate-level strategy is concerned with how a diversified firm competes in each industry in which it is active

1 True

2 False

Organisational culture refers to the core values shared by a firm’s managers but not necessarily by its lower-level

employees

1 True

2 False

The industrial organisation (I/O) model suggests that above-average returns are earned when firms implement a strategy dictated by the characteristics of the general, industry and competitor environments

1 True

2 False

A strategy is a coordinated set of actions designed to exploit core competencies and gain a competitive advantage

1 True

2 False

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

1 True

2 False

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

1 True

2 False

When products become somewhat indistinguishable

because of the widespread and rapid diffusion of

technologies, speed to market may be the primary source of competitive advantage

1 True

2 False

A core competency is the capacity for a set of resources to perform a task or an activity in an integrative manner

1 True

2 False

The risks of participating outside of a firm’s domestic

country in the global economy are labelled a ‘liability of

newness’

1 True

2 False

Firms that are capable of successfully competing in global markets may not need to worry about their home markets

1 True

2 False

A business-level strategy describes a firm’s actions

designed to exploit its resources and capabilities

1 True

2 False

Above-average returns are returns in excess of what an

investor expects to earn from other investments with a

similar amount of risk

1 True

2 False

Knowledge is a critical organisational resource and an

increasingly valuable source of competitive advantage

1 True

2 False

The I/O model argues that core competencies are the basis

of a firm’s competitive advantage

1 True

2 False

9 Free Test Bank for Strategic Management 5th Asia Pacific Edition by Hanson Free Text Questions

What are some of the effects that technology and

technological changes have on the competitive landscape?

Answer Given

There are three categories of trends and conditions – technology diffusion and disruptive technologies, the information age and increasing knowledge intensity – through which technology is significantly altering the nature of competition and contributing to unstable competitive environments Perpetual innovation and the time to gather information are indicators of technology diffusion In some

industries, intellectual properties such as patents cannot provide the necessary protection because of the perils of disclosing information during the patent

application process Disruptive technologies such as the internet, the declining costs of information technologies and the increased accessibility to them have contributed to hypercompetition Finally, knowledge is a critical resource that forms the basis of technology and its application Knowledge flows within an

organisation are essential to the execution of technologies Doing this well will generate even greater efficiency and more competition in the market

Describe the steps of the strategic management process.

Answer Given

A firm’s first step in the process is to analyse its external and internal

environments to determine its resources, capabilities and core competencies – the sources of its ‘strategic inputs’ With this information, the firm develops its vision and mission and formulates its strategy To implement this strategy, the firm takes actions toward achieving strategic competitiveness and above-average returns These activities involve effective strategic actions that occur in the context of carefully integrated strategy formulation and implementation actions that result in desired strategic outcomes It is a dynamic process, as ever-changing markets and competitive structures must be coordinated with a firm’s continuously evolving strategic inputs

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

Answer Given

The resource-based model focuses on the internal resources and capabilities of a firm as a source of competitive advantage The model assumes that each firm is a collection of unique resources and capabilities Resources are not highly mobile across firms All firms within a particular industry may not possess the same strategically relevant resources and capabilities

Describe an organisation’s various stakeholders and their different interests.

Answer Given

Stakeholders are the individuals and groups who can affect and are affected by the strategic outcomes achieved and who have enforceable claims on a firm’s performance There are three principal types of stakeholders First, there are the capital market stakeholders, which include the shareholders and the major

suppliers of capital to the firm They are most interested in the return on capital and the firm’s profitability The second group of stakeholders are the product