Test Bank For The Management of Strategy Concepts International Edition 10th Edition by R. Duane Ireland

ISBN-10: 1133584691, ISBN-13: 9781133584698

Chapter 1—Strategic Management and Competitiveness

TRUE/FALSE

1. The Chapter 1 Opening Case shows that Borders was unsuccessful in competing in Internet book sales, but not against brick-and-mortar stores.

ANS:  F                    PTS:   1                    DIF:    Medium         OBJ:   Application

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

2. According to the Chapter 1 Opening Case, Barnes & Noble and Amazon were more competitive than Borders and adjusted more effectively to changes in the retail book market.

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   Application

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy| Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

3. The Chapter 1 Opening Case illustrates that while Borders was able to achieve strategic competitiveness, it did not achieve above-average returns because of conditions beyond the control of of its top management.

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   Application

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

4. According to the Chapter 1 Opening Case, Barnes & Noble and Amazon were more effective than Borders in using the strategic management process as the foundation for the commitments, decisions, and actions they took to pursue strategic competitiveness and above-average returns.

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   Application

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

5. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   Knowledge

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Knowledge

6. Alligator Enterprises has earned above-average returns since its founding five years ago. Since no other firm has challenged Alligator in its particular market niche, the firm’s owners can feel secure that Alligator has established a competitive advantage.

ANS:  F                    PTS:   1                    DIF:    Hard               OBJ:   Application

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing the task environment | Bloom: Application

7. The goal of strategic management is to develop a competitive advantage that is permanent.

ANS:  F                    PTS:   1                    DIF:    Medium         OBJ:   Comprehension

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Comprehension

8. Risk in terms of financial returns reflects an investor’s uncertainty about economic gains or losses that will result from a particular investment.

ANS:  T                    PTS:   1                    DIF:    Easy               OBJ:   Knowledge

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Foundational skills | Bloom: Knowledge

9. Average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.

ANS:  F                    PTS:   1                    DIF:    Medium         OBJ:   Knowledge

NOT:  AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Foundational skills | Bloom: Knowledge

10. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales.

ANS:  F                    PTS:   1                    DIF:    Easy               OBJ:   Knowledge