Strategic MGMT Quiz 1

Which of the following statements with regard to determining firm performance is true? A. Industry effects attribute firm performance to the actions managers take within a chosen industry. B. Industry effects are more important than firm effects in determining a firm's performance. C. Firm and industry effects are independent of each other. D. External analysis will help understand the industry effects that determine a firm's performance.

D. External analysis will help understand the industry effects that determine a firm's performance.

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy A. control. B. implementation. C. formulation. D. analysis.

D. analysis.

The metaphor of a black swan best applies to A. low profitable strategic business units within a large enterprise that are best divested or liquidated. B. highly profitable business units in low growth markets that are to be sustained solely for revenue generation. C. small businesses that become successful enough to raise capital through initial public offering. D. events that are considered highly unexpected and highly impactful when they do occur.

D. events that are considered highly unexpected and highly impactful when they do occur.

Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? A. literacy B. solvency C. supremacy D. legitimacy

D. legitimacy

Which of the following forces are most closely related to firm effects within a pharmaceutical industry? A. the types of products and the services offered within the industry B. the entry and exit barriers existing within the industry C. the number and the size of the firms in the industry D. the strategic actions taken by managers of a firm in the industry

D. the strategic actions taken by managers of a firm in the industry

Which of the following groups is most likely to be considered a firm's internal stakeholder? A. board members B. customers C. creditors D. alliance partners

A. board members

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? A. sustainable competitive advantage B. long-term capital gain C. strategic positioning D. consistent power position

A. sustainable competitive advantage

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in A. trade-offs that work against each other B. an increase in the firm's economic contribution. C. a competitive advantage through superior performance. D. competitive parity with firms that have adopted either of the strategies.

A. trade-offs that work against each other

Which of the following statements about competitive advantage is not true? A. A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. B. A firm's past performance does not guarantee its future performance. C. A firm's competitive advantage is always absolute, not relative. D. A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price.

C. A firm's competitive advantage is always absolute, not relative.

Which of the following groups will not be considered a company's internal stakeholder? A. shareholders B. managers C. suppliers D. board members

C. suppliers