som true or false
A firm's business-level strategy answers the question "Where should we compete?"
false
A high degree of formalization streamlines the decision-making process.
false
A merger describes the purchase or takeover of one company by another.
false
An acquisition describes the joining of two independent companies to form a combined entity.
false
Assumptions have no major role in the development of strategies for an organization.
false
Competitive advantage is an absolute measure of superior firm performance.
false
Globalization has led to increased entry barriers.
false
In general, product innovation is more strategically important than process innovation while a firm is in the growth stage of the industry life cycle.
false
In order for a firm to perform well in each stage of an industry life cycle, it should consistently use the same competencies.
false
Investment in specialized assets is a huge risk of vertical integration.
false
It is unwise to initiate strategic moves such as R&D spending during an economic downturn.
false
Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.
false
Performance differences that exist between rivals within the same industry are based primarily on the external environment.
false
Stakeholders impact analysis is a tool used to quantify which specific stakeholders have the largest financial impact on the firm.
false
Strategic intent is used by firms to help define their short-term objectives
false
Strategic leadership is irrelevant when a firm pursues its goals.
false
The essential core of strategy is doing the same thing as your rivals but being more effective at it.
false
Top-down strategic planning works best in more uncertain situations because the firm hand of senior leadership is best at seeing the future.
false
Under the VRIO framework, direct imitation is a bigger threat to a firm's competitive advantage than the threat of substitution.
false
When measuring competitive advantage under the economic value creation approach, it can be easy to determine what the consumer's maximum willingness to pay will be.
false
When using accounting profitability data to assess competitive advantage, it is important to make comparisons across different industries.
false
A company's mission should be customer-oriented because this helps the firm retain flexibility in changing environments.
true
A firm must choose an appropriate international entry strategy to go global.
true
A firm that formulates and implements a strategy that leads to superior performance has competitive advantage.
true
A key component to formulating corporate-level strategy is the "make" or "buy" decisions.
true
A mission describes what an organization actually does, what its business is, and why it does it.
true
Acquisitions, alliances, and networks help firms pursue common interests, enhance competitiveness, and increase revenues.
true
An effective governance mechanism is needed to direct and control the enterprise.
true
An important question to ask when looking at differences in firm performance and competitive advantage is how to best measure these differences.
true
Corporate social responsibility (CSR) includes economic, legal, ethical, and philanthropic responsibilities.
true
Corporate-level strategy involves the decisions made and actions taken while deciding which industries and markets to pursue simultaneously.
true
Decisions about strategy and structure are interrelated.
true
Globalization has led to significant increases in corporate earnings.
true
Horizontal integration can help firms enhance differentiation.
true
Industry value chains are also called vertical value chains.
true
Intangible resources are more likely than tangible resources to help a firm create and sustain competitive advantage(s).
true
It is important to measure competitive advantage at the firm level by looking at the economic value created for all products and services offered by the firm.
true
Knowledge diffusion can make a resource less rare.
true
One assumption made under the resource-based model is that resources do not move easily from firm to firm.
true
Scientific improvements and innovations are examples of technological forces.
true
The goal of a strategic position is to create the largest gap possible between the value that a firm creates through its offerings and the cost required to create these offerings.
true
The key elements of organizational structure are specialization, centralization, formalization, and hierarchy.
true
The strategic management process describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage.
true
The term strategy is meant to describe the firm's overall quest for competitive advantage.
true
Under the PESTEL framework, external economic factors that are important to a firm's strategy include deflation and levels of employment.
true
When a disruptive innovation is first introduced to the market, it is generally inferior in performance relative to what currently exists.
true
When pursuing a differentiation strategy, the focus of competition is to add unique features in order to create a level of value creation that competitors cannot easily imitate.
true
One of the benefits gained by a firm entering the international market is competitive advantage through location.
true (?)
One of the dimensions of corporate strategy is how to compete effectively in the global marketplace.
true (?)
