Strategic Management: Competitiveness and Globalisation 7th ASIA Pacific Edition by Hanson Test ban
1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
a. True
b. False
ANSWER: True
2. A strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and
gain a competitive advantage.
a. True
b. False
ANSWER: True
3. A firm has a competitive advantage when it implements a strategy that competitors are unable to duplicate or find
costly to imitate.
a. True
b. False
ANSWER: True
4. To achieve competitiveness and above average returns, the strategic management process requires a market orientation.
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a. True
b. False
ANSWER: False
5. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar
amount of risk.
a. True
b. False
ANSWER: True
6. Hypercompetition is a competitive landscape where assumptions about continually changing conditions are challenged.
a. True
b. False
ANSWER: False
7. The risks of participating outside of a firm’s domestic country in the global economy are labelled a ‘liability of
newness’.
a. True
b. False
ANSWER: False
8. Firms that are capable of successfully competing in global markets may not need to worry about their home markets.
a. True
b. False
ANSWER: False
9. 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.
a. True
b. False
ANSWER: True
10. Perpetual innovation is a term used to describe how rapidly and consistently new, information-intensive technologies
replace older ones.
a. True
b. False
ANSWER: True
11. Disruptive technologies create existing technologies and destroy new markets.
a. True
b. False
ANSWER: False
12. Data and information give small organisations more flexibility to interact virtually.
a. True
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b. False
ANSWER: False
13. Knowledge is a critical organisational resource and an increasingly valuable source of competitive advantage.
a. True
b. False
ANSWER: True
14. Strategic flexibility is a set of capabilities used to respond to various demands and opportunities existing in a dynamic
and uncertain competitive environment.
a. True
b. False
ANSWER: True
15. 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.
a. True
b. False
ANSWER: True
16. The resource-based model assumes that differences in resources and capabilities are the basis of a competitive
advantage.
a. True
b. False
ANSWER: True
17. The resource-based model assumes that core competencies are the basis of a firm’s competitive advantage.
a. True
b. False
ANSWER: True
18. A core competency is the capacity for a set of resources to perform a task or an activity in an integrative manner.
a. True
b. False
ANSWER: False
19. A firm’s mission tends to be enduring while its vision can change in view of changing environmental conditions.
a. True
b. False
ANSWER: False
20. Stakeholders the individuals and groups who are interested in the organisation’s strategic outcomes and performance.
a. True
b. False
ANSWER: False
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21. Customers, suppliers, unions and local governments are examples of capital market stakeholders.
a. True
b. False
ANSWER: False
22. 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.
a. True
b. False
ANSWER: False
23. Employees, managers and non-managers are examples of organisational stakeholders.