Strategic Management: Concepts and Cases 3rd Edition by Jeffrey H. Dyer Test bank
Bloomcode: Application
Standard 1: AACSB || Analytic
13) Which of the following statements is true of external analysis?
a) It is capable of analyzing only the threats that a company might come across.
b) It studies the factors that influence an organization’s appeal and environment.
c) It focuses on the factors that influence employees of an organization to leave.
d) It analyzes a firm’s resources and capabilities to assess how effectively it is able to deliver unique value.
Answer: b
Difficulty: Medium
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Comprehension
Standard 1: AACSB || Analytic
14) The Board of Directors of Miranay Corp. assesses and evaluates the firm’s industry structure. In order to track the factors that could affect Miranay’s performance, it tries to scan the industry’s positive and negative trends. The Board of Directors of Miranay Corp. is involved in a(n) ________.
a) financial analysis
b) internal analysis
c) external analysis
d) profit analysis
Answer: c
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
15) Which of the following statements best describes the term internal analysis?
a) It studies the infrastructure of a company to gauge the number of employees it can recruit.
b) It examines a company’s resources and capabilities to configure a firm’s ability to deliver unique value.
c) It examines the emotions of a firm’s employees in order to identify their weaknesses.
d) It examines the efficiency of employees through the help of standardized tests and group discussions.
Answer: b
Difficulty: Medium
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Comprehension
Standard 1: AACSB || Analytic
16) Ravi, a supervisor at Autumn Inc., notices that the company has been successful in outperforming its competitors in the industry and declares that the company has achieved competitive advantage. Yolanda, a manager at Autumn Inc., argues that this is not true. Which of the following strengthens Ravi’s claim?
a) Autumn Inc.’s strategy is imitable by its competitors.
b) Autumn Inc.’s strategy can be pursued by competitors as it is not too costly.
c) Autumn Inc. is able to outscore a superior company in the next quarter.
d) Autumn Inc. has been consistently outperforming its rivals in generating above-average profits.
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Analysis
Standard 1: AACSB || Reflective Thinking
17) The board of directors of White Corp. meets to analyze the company’s competencies and scope for improvement. It also examines whether White Corp. has been able to meet its potential customers’ requirements. The board of directors of White Corp. is involved in a(n) ________.
a) external analysis
b) financial analysis
c) profit analysis
d) internal analysis
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
18) Sweetmeats Inc., a deli, produces its own grains, such as corn, wheat, rice, and oats. The employees create different types of breads without having to buy the grains from other sources. This has helped them sell their bread items to customers at much lower prices than other neighboring delis. This scenario best illustrates a(n) ________.