Strategic Management: Competitiveness and Globalisation 7th ASIA Pacific Edition by Hanson Test ban

a.  True
b.  False
ANSWER: True
24. Organisational culture refers to the core values shared by a firm’s managers but not necessarily by its lower-level
employees.
a.  True
b.  False
ANSWER: False
25. A profit pool includes the total profits earned in an industry at all points along the value chain.
a.  True
b.  False
ANSWER: True
26. What has a firm achieved when it successfully formulates and implements a value-creating strategy?
a.  Strategic competitiveness
b.  A permanently sustainable competitive advantage
c.  Substantial returns
d.  Average returns
ANSWER: a
27. A firm has a competitive advantage when:
a.  the value-creating strategy is in the formulation stage
b.  competitors are simultaneously implementing the strategy
c.  competitors are not able to duplicate the strategy
d.  average returns are earned by the company
ANSWER: c
28. Returns are often measured by:
a.  the level of innovation within the organisation
b.  the basis of stock market yields
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c.  the number of industries in which the firm participates
d.  the number of customers the organisation serves
ANSWER: b
29. The strategic management process is:
a.  a set of activities that is guaranteed to prevent organisational failure
b.  a process concerned with a firm’s resources, capabilities and competencies, but not with conditions in its
external environment
c.  a set of activities that have been designed to achieve average returns
d.  a full set of commitments, decisions and actions required for competitiveness
ANSWER: d
30. Risk is an investors uncertainty:
a.  about their financial management and investments
b.  about the economic gains or losses that will result from a particular investment
c.  about the of activities that have been designed to achieve above-average returns
d.  which reduces over time as decisions and actions are required for competitiveness
ANSWER: b
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31. The global economy is:
a.  one in which goods, services, peoples, skills and ideas move freely across geographic borders
b.  a process of technological change concerned with a firm’s resources, capabilities and competencies
c.  is a critical challenge to successful competition
d.  a significant influence on competitive performance
ANSWER: a
32. Which of the following is not a characteristic of hypercompetition?
a.  competition to generate more customers from underdeveloped markets
b.  competition to protect or invade established product or geographic markets
c.  competition to create new know-how and establish first-mover advantage
d.  price-quality positioning
ANSWER: a
33. Which of the following is not a risk of globalisation?
a.  the amount of time required to learn how to compete in unfamiliar markets
b.  increased diversity in the workforce
c.  over-diversification internationally beyond capabilities to manage operations
d.  new rules of law and governance
ANSWER: b
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34. Technological diffusion is:
a.  the impact technological change has on organisations
b.  the advent of advanced technologies such as AI and the internet of things
c.  the speed at which new technologies become available and used
d.  about increasing knowledge intensity and the information age
ANSWER: c
35. 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:
a.  understand customer needs
b.  learn
c.  work closely with suppliers
d.  observe competitors carefully
ANSWER: b
36. 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.
a.  24 per cent; 40 per cent
b.  22 per cent; 42 per cent
c.  20 per cent; 36 per cent
d.  26 per cent; 38 per cent
ANSWER: c
37. The I/O model argues that:
a.  internal resources and capabilities represent the foundation for the development of a value-creating strategy