strategic initiatives.
True
False
In the strategy as a planned emergence process, every employee plays a strategic role. Any
employee, even at the entry level, can have great ideas that might become strategic initiatives with
the potential to transform companies.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Assess the
relationship between stakeholder
strategy and sustainable competitive
advantage.
Tommy wants to open his own food truck but doesn’t know anything about business. He needs help
determining who his competition is, how he should craft his strategy to compete and how he’ll
implement his strategy to achieve a competitive advantage. He’s hired you to help him get started.
As a result, you know that you will probably use the
AFI strategy framework.
business model analysis.
Six Sigma tool.
Stakeholder Impact analysis.
The AFI framework combines analysis, formulation, and implementation in the quest for competitive
advantage.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
10.
Award: 1.00 point
Jill is interested in the concept of strategy and decides to create her own. As a result, Jill says that
her strategy is to focus on growth and marketing to achieve competitive advantage. How would you
evaluate Jill’s statement?
Jill’s strategy makes sense and she should move forward with it.
Jill’s strategy reveals a clear strategic position and tradeoff, so she should proceed.
Jill should reevaluate her statement because it fails to mention human resources and
finance.
Jill should reevaluate her statement because it fails to meet the principles of what a
strategy should be.
Focusing on growth and/or marketing are not strategies. Instead, these are tactics which may help
the overall strategy, but they are not strategies by themselves. Strategies are the goal-directed
actions a firm takes to gain and sustain a competitive advantage.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Explain the role
of strategy in a firm's quest for
competitive advantage.
11.
Award: 1.00 point
Tony’s Pizza Shop is able to net $10,000 a week; this makes his shop profitable. His number one
competitor, Leo’s Pies is also profitable, netting $12,000 a week. Lil Anthony’s Pizza Palace nets
$13,000 a week. Since Tony’s Pizza Shop is profitable, we can conclude that he has a competitive
advantage in the industry.
True—competitive advantage is achieved through profitability alone.
True—competitive advantage is achieved since Tony has a positive net income.
False—competitive advantage is only achieved by generating above average returns,
relative to competition.
False—Tony more than likely has a sustained competitive advantage since he’s been in
business longer.
Profitability does not necessarily equate to competitive advantage. A competitive advantage is
measured by a firm’s ability to generate above average returns, not just a measure of profitability.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
12.
Award: 1.00 point
Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week; this
is the industry average. We can conclude that since he has a positive net income, he also has a
competitive parity in the industry.
Correct—competitive advantage is achieved through profitability alone.
Correct—competitive advantage is achieved since Bill’s Auto & Airplane Repair shop has a
positive net income.
Correct—competitive parity is achieved by generating average returns, relative to
competition in a given industry.
Incorrect—Bill’s Auto & Airplane Repair shop more than likely has a sustained competitive
advantage since his business is diversified.
A competitive parity is defined as a firm’s ability to generate average returns relative to the industry
in which they operate.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Define
competitive advantage, sustainable
competitive advantage, competitive
disadvantage, and competitive parity.
13.