Analysis Exam P1

A manager's only responsibility is to monitor and assess the performance of his or her firm.

False

A sustainable strategy is one that produces a competitive advantage that can be maintained over time.

False

Accounting, human resources, and research and development (R&D) are examples of primary activities that add value directly to the value chain.

False

Generally speaking, a firm will create value if its return on invested capital (ROIC) is less than the cost of capital.

False

Once a strategy has been formulated and implemented, it is important that the firm sticks to it no matter what happens

False

One of Rolex's tangible resources is its well-known brand name and reputation for quality timepieces.

False

Strategic leaders spend the majority of their time working alone to devise new strategies.

False

The autocratic strategic management process exhibited by the former head of Apple, Steve Jobs, is best described as an emergent strategy.

False

A small coffee shop faces significant potential competition because of the low capital requirements compared with business environments such as universities and laboratories.

True

According to the resource-based view, a firm that differentiates itself from its competitors through its personalized approach to customer service is likely to sustain its competitive advantage for a long time.

True

An employee lacking some of the innate abilities to be a top-level manager can still become an effective strategic leader through hard work and experience.

True

The core competencies of a firm are determined by the interplay of its tangible resources and intangible capabilities.

True

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives

True