Chapter 1

3) A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)

A) competitive advantage.

9) The _____ is a model that links strategy analysis, strategy formulation, and strategy implementation, which together helps managers plan and implement a strategy that can improve performance and result in competitive advantage.

B) AFI strategy framework

6) Silver Screen Cinemas Inc. and Digi Now Inc. are two companies that own and run movie theaters in malls and other commercial areas. While Silver Screen Cinemas Inc. pursues a cost-leadership strategy, Digi Now Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?

B) Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.

2) _____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

B) Strategy

8) Which of the following statements should ideally reflect a firm's strategy for competitive advantage?

C) Our aim is to create superior customer value while controlling costs.

1) _____ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

C) Strategic management

4) Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

C) Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.

10) Which of the following is not one of the three interdependent tasks of strategic management?

C) estimate

7) Pink Couture Inc. and Pink Blush Inc. are two companies in the apparel industry. While Pink Couture Inc. focuses on providing unique product features and superior customer service, Pink Blush Inc. focuses on low prices and minimal customer service. Both companies have been able to gain a competitive advantage. This is most likely because the companies have

C) pursued distinct strategic positions.

5) Underperformance relative to other firms in the same industry or the industry average results in a(n) _____ for a firm.

D) competitive disadvantage