1.
Award: 1.00 point
A good strategy is a set of actions that enables a firm to achieve its own internal goals without
regard to the external environment.
True
False
The success of a strategy heavily depends on the external environment. A good strategy is a set of
actions that enables a firm to achieve superior performance relative to its competitors. In this light, a
strategy which produces only a minor loss of revenues while competitors suffer heavy losses can be
seen as successful.
References
True / False Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
2.
Award: 1.00 point
3.
Award: 1.00 point
The following statement by the chief executive of GoFlix movie studio is an effective strategy: “We
will produce the greatest films of the 21st century.”
True
False
Grandiose statements are not strategy. Although GoFlix’s vision of producing the highest-quality
films among all studios may lay the foundation for an effective strategy, it must be backed up by a
clear set of actions that will allow the firm to address the competitive challenge with clear
consideration of value creation and costs.
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
Incorporate feedback.
True
False
The three tasks of the AFI strategy framework are to Analyze, Formulate, and Implement. This
framework (1) explains and predicts differences in firm performance, and (2) helps managers
formulate and implement a strategy grounded in internal and external analysis that can result in
superior performance.
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
4.
Award: 1.00 point
5.
Award: 1.00 point
Questions asked during the strategy analysis stage of the AFI framework include “How does the
firm make money?” and “What effects do forces in the external environment have on the firm’s
potential to gain and sustain a competitive advantage?”
True
False
Strategy analysis involves consideration of both the firm’s internal and external environments, and
the role that strategic managers play in establishing and maintaining a competitive advantage.
References
True / False Difficulty: 3 Hard Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
Once a strategy has been formulated and implemented, it is important that the firm sticks to it no
matter what happens.
True
False
Strategic leaders make decisions under conditions of uncertainty and complexity. They must
carefully monitor and evaluate the progress toward key strategic objectives and make adjustments
by fine-tuning any strategy as necessary.
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
6.
Award: 1.00 point
7.
Award: 1.00 point
Because they are a crucial component of a firm’s success, customers are considered internal
stakeholders.
True
False
Internal stakeholders include employees (including executives, managers, and workers),
stockholders, and board members. External stakeholders include customers, suppliers, alliance
partners, creditors, unions, communities, governments at various levels, and the media.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Assess the
relationship between stakeholder
strategy and sustainable competitive
advantage.
A firm is required by society and its shareholders to meet its ethical and philanthropic
responsibilities.
True
False
Ethical and philanthropic responsibilities are expected by society, but not required. Society and
shareholders require economic and legal responsibilities.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Assess the
relationship between stakeholder
strategy and sustainable competitive
advantage.
8.
Award: 1.00 point
9.
Award: 1.00 point
Under the strategy as a planned emergence model, even entry-level employees can help generate
Award: 1.00 point
A good strategy is a set of actions that enables a firm to achieve its own internal goals without
regard to the external environment.
True
False
The success of a strategy heavily depends on the external environment. A good strategy is a set of
actions that enables a firm to achieve superior performance relative to its competitors. In this light, a
strategy which produces only a minor loss of revenues while competitors suffer heavy losses can be
seen as successful.
References
True / False Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
2.
Award: 1.00 point
3.
Award: 1.00 point
The following statement by the chief executive of GoFlix movie studio is an effective strategy: “We
will produce the greatest films of the 21st century.”
True
False
Grandiose statements are not strategy. Although GoFlix’s vision of producing the highest-quality
films among all studios may lay the foundation for an effective strategy, it must be backed up by a
clear set of actions that will allow the firm to address the competitive challenge with clear
consideration of value creation and costs.
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
The three tasks of the AFI strategy framework are to Assemble a prototype, Find a buyer, and
Incorporate feedback.
True
False
The three tasks of the AFI strategy framework are to Analyze, Formulate, and Implement. This
framework (1) explains and predicts differences in firm performance, and (2) helps managers
formulate and implement a strategy grounded in internal and external analysis that can result in
superior performance.
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
4.
Award: 1.00 point
5.
Award: 1.00 point
Questions asked during the strategy analysis stage of the AFI framework include “How does the
firm make money?” and “What effects do forces in the external environment have on the firm’s
potential to gain and sustain a competitive advantage?”
True
False
Strategy analysis involves consideration of both the firm’s internal and external environments, and
the role that strategic managers play in establishing and maintaining a competitive advantage.
References
True / False Difficulty: 3 Hard Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
Once a strategy has been formulated and implemented, it is important that the firm sticks to it no
matter what happens.
True
False
Strategic leaders make decisions under conditions of uncertainty and complexity. They must
carefully monitor and evaluate the progress toward key strategic objectives and make adjustments
by fine-tuning any strategy as necessary.
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Explain the
Analysis, Formulation, Implementation
(AFI) Strategy Framework.
6.
Award: 1.00 point
7.
Award: 1.00 point
Because they are a crucial component of a firm’s success, customers are considered internal
stakeholders.
True
False
Internal stakeholders include employees (including executives, managers, and workers),
stockholders, and board members. External stakeholders include customers, suppliers, alliance
partners, creditors, unions, communities, governments at various levels, and the media.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Assess the
relationship between stakeholder
strategy and sustainable competitive
advantage.
A firm is required by society and its shareholders to meet its ethical and philanthropic
responsibilities.
True
False
Ethical and philanthropic responsibilities are expected by society, but not required. Society and
shareholders require economic and legal responsibilities.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Assess the
relationship between stakeholder
strategy and sustainable competitive
advantage.
8.
Award: 1.00 point
9.
Award: 1.00 point
Under the strategy as a planned emergence model, even entry-level employees can help generate