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

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
c.  the conditions and characteristics of the external environment are the primary inputs to and determinants of
strategy
d.  internationalisation in certain industries will lead to globalisation
ANSWER: c
38. The resource-based view of the firm:
a.  suggests that resources, rather than capabilities, are more closely linked with sustainable competitive
advantage
b.  argues that the industry environment has a stronger influence on a firm’s ability to implement strategies
successfully than the competitor environment
c.  calls for firms to focus on their homogeneous skills to compete against their rivals
d.  assumes that resources may not be mobile across firms
ANSWER: d
39. Which of the following are the three key categories of firm resources?
a.  Physical, knowledge and organisational
b.  Physical, human and organisational
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c.  Physical, technological and human
d.  Physical, technological and reputational
ANSWER: b
40. The resource-based model of the firm contends that:
a.  resources that are valuable, rare, costly to imitate and non-substitutable form the basis of a firm’s competitive
advantage
b.  the key to competitive success is the structure of the industry in which a firm competes
c.  resources have the potential to be the basis of sustained competitive advantage
d.  competencies are not a source of potential competitive advantage
ANSWER: a
41. A statement that articulates the ideal description of an organisation and gives shape to its intended future is a:
a.  strategic mission
b.  strategic vision
c.  strategic idea
d.  strategic objective
ANSWER: b
42. A mission statement should clearly specify:
a.  the stakeholders’ expectations on return on investment
b.  the firm’s intended business and customers
c.  the conditions of the industry in which the firm operates
d.  the conditions in the firm’s external and internal environments
ANSWER: b
43. Deciding a firm’s vision and mission statements requires:
a.  business ethics as a vital part of discussions
b.  foundation strategies to be implemented
c.  specifying the industry in which the firm intends to compete
d.  a firm develops its strategic intent
ANSWER: a
44. Capital market stakeholders include:
a.  unions
b.  employees
c.  shareholders
d.  government regulators
ANSWER: c
45. Product market stakeholders include a firm’s customers. The principal concern of this stakeholder group is:
a.  maximising the firm’s return on investment
b.  providing a stimulating career environment for employees
c.  obtaining reliable products at the lowest possible price
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d.  increasing the profitability of the firm
ANSWER: c
46. Generally speaking, capital market stakeholders are satisfied when:
a.  a firm preserves and enhance the wealth they have entrusted to it.
b.  a firm’s profit margin yields an above-average return to its capital market stakeholders
c.  the interests of a firm’s organisational stakeholders have been maximised
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
ANSWER: a
47. Organisational stakeholders are usually satisfied when:
a.  workplace understands their customers
b.  they don’t have to do teamwork
c.  leaders are productively critical
d.  companies are growing and helping individuals develop their skills
ANSWER: d
48. The natural world is an important stakeholder because:
a.  of the vital issue of its depletion of human actions
b.  well organised, well-funded environmental groups representing the interests of nature means trouble
c.  individuals and groups who have invested capital in a firm expect a positive return on their investment
d.  corporate social responsibility (CSR) has become a major interest and very topical as an issue for many global
organisations, and a major factor in corporate governance