Strategic Management: Text and Cases 8th Edition

Chapter 01 Strategic Management: Creating Competitive Advantages Answer Key True / False Questions 1. TRUE In the romantic view of leadership, the implicit assumption is that the leader is the key force in determining an organization's success or lack thereof. The Board of Directors

Topic: The Strategic Management Perspective: An Imperative throughout the Organization 72. TRUE Under the direction of Nancy Snyder, a corporate vice president, Whirlpool, brought about a significant shift in its reputation as an innovator. This five-year initiative included financial investments in capital spending as well as

Topic: The Role of Corporate Governance and Stakeholder Management 129. Stockholders as a stakeholder group are interested primarily by A. payment of interest and repayment of principal. B. value and warranties. C. dividends and capital appreciation. D. taxes and compliance with regulations. Stockholders are

Chapter 10 Creating Effective Organizational Designs Answer Key True / False Questions 1. FALSE The strategy and structure of a firm change as it increases in size, diversifies into new product markets, and expands its geographic scope. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning

66. Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization? A. the extent of international expansion B. the type of strategy (global, multidomestic, or transnational) C. the degree of

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of

Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization Answer Key True / False Questions 1. TRUE Many authors contend that successful leaders must recognize three interdependent activities that must be continually reassessed for organizations to succeed. These are: (1) setting a

65. FALSE Corporate credos and codes of conduct are mechanisms that provide statements of norms and beliefs, as well as guidelines for decision making. They provide employees with a clear understanding of the organization policies and ethical position. Such guidelines also provide the basis for employees to

Blooms: Understand Learning Objective: 11-04 The importance of creating a learning organization. Level of Difficulty: 2 Medium Topic: Developing Competency Companions and Creating a Learning Organization Blooms: Understand Learning Objective: 11-04 The importance of creating a learning organization. Level of Difficulty: 2 Medium Topic: Developing Competency Companions and Creating

Chapter 12 Managing Innovation and Fostering Corporate Entrepreneurship Answer Key True / False Questions 1. FALSE Innovation involves using new knowledge to transform organizational processes or create commercially viable products and services. The sources of new knowledge may include the latest technology, the results of

63. Whereas ______________ are often associated with a low cost leader strategy, ______________ are frequently an important aspect of a differentiation strategy. A. process innovations; product innovations B. product innovations; service innovations C. radical innovations; instrumental innovations D. marketing innovations; management innovations Process innovations are often

95. One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts. Which is it? A. Is the venture attracting external venture funding? B. Is the venture considered to be a market success? C. Does the venture

Chapter 02 Analyzing the External Environment of the Firm: Creating Competitive Advantages Answer Key True / False Questions 1. TRUE Three important processes (scanning, monitoring, and gathering competitive intelligence) are used to develop forecasts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-01 The

67. FALSE Switching costs for an end user are also potentially much lower because of the Internet. Switching may involve only a few clicks of the mouse to find and view a competing product or service online. FALSE Switching costs for an end user are also potentially much lower

118. Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting. A. basic B. fundamental C. in-depth D. superficial Scenario analysis is a more in-depth approach to forecasting. It draws on a range of disciplines and interests, among them

149. In the Five-Forces model, conditions under which a supplier group can be powerful include all of the following except A. lack of importance of the buyer to the supplier group. B. high differentiation by the supplier. C. readily available substitute products. D. dominance by a few

Chapter 03 Assessing the Internal Environment of the Firm Answer Key True / False Questions 1. FALSE The strengths and capabilities of a firm, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. AACSB: Analytical Thinking

66. FALSE The financial position of a firm should not be analyzed in isolation. Important reference points are needed. Some issues that must be taken into account to make financial analysis more meaningful include: historical comparisons, comparisons with industry norms, and comparisons with key competitors. FALSE The financial

126. For an engineering services firm, ________________ provides inputs, the transformation process is the engineering itself, and innovative designs and practical solutions are the outputs. A. experimentation B. customer support C. research and development D. human resource managementFor an engineering services firm, research and development provides

Chapter 04 Recognizing a Firm's Intellectual Assets: Moving beyond a Firm's Tangible Resources Answer Key True / False Questions 1. TRUE For most of the 20th century, managers focused on tangible resources such as land, equipment, and money as well as intangibles such as brands,

69. FALSE Explicit (or codified) knowledge is knowledge that can be documented, widely distributed, and easily replicated. One of the challenges of knowledge-intensive organizations is to capture and codify the knowledge and experience that, in effect, resides in the heads of its employees. Otherwise, they will have

125. A. fewer B. less favorable C. no D. greater Knowledge workers often exhibit greater loyalties to their colleagues and their profession than their employing organization. A. fewer B. less favorable C. no D. greater Knowledge workers often exhibit greater loyalties to their colleagues and their

151. The creation of knowledge assets is typically characterized by A. high upfront costs and subsequent high variable costs. B. high fixed costs and high variable costs. C. high upfront costs and low variable costs. D. low upfront costs and high variable costs. One of the

Chapter 05 Business-Level Strategy: Creating and Sustaining Competitive Advantages Answer Key True / False Questions 1. FALSE A business-level strategy is a strategy designed for a firm or a division of a firm that competes within a single business. AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-06 The importance of considering the industry life cycle to determine a firm's business-level strategy and its relative emphasis on functional area strategies and value-creating activities. Level of Difficulty: 2 Medium Topic: Industry Life Cycle Stages: Strategic Implications Accessibility: Keyboard Navigation Blooms:

Topic: Types of Competitive Advantage and Sustainability 119. At one CVS drugstore, a four-pack of Energizer AA batteries was on sale at 2.99 USD compared with a Duracell four-pack at 4.59 USD. The Duracell market share dropped 2 percent in a recent two-year period, and its profits

Chapter 06 Corporate-Level Strategy: Creating Value through Diversification Answer Key True / False Questions 1. FALSE Research shows that the vast majority of acquisitions of public corporations result in value destruction rather than value creation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective:

63. Corporate-level strategy focuses on A. gaining long-term revenue. B. gaining short-term profits. C. decreasing business locations. D. managing investment bankers and their interests. Corporate-level strategy focuses on gaining long-term revenue, profits, and market value through managing operations in multiple businesses. A. gaining long-term revenue. B.

Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power 90. Vertical integration is attractive when A. internal administrative costs are higher

Chapter 07 International Strategy: Creating Value in Global Markets Answer Key True / False Questions 1. FALSE The rise of globalization, meaning the rise of market capitalism around the world, means competitors can now come from just about anywhere. FALSE The rise of globalization, meaning the

Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion 63. FALSE Establishing a wholly owned subsidiary is the most expensive and risky of

102. Ricoh Americas Corporation has significant international operations. Faced with local reticence to adapt changes that come from other global regions, what does Ricoh suggest is the most successful approach? A. Bring in global market representatives to force change locally. B. Obligate local offices to adopt

Chapter 08 Entrepreneurial Strategy and Competitive Dynamics Answer Key True / False Questions 1. TRUE Small businesses, those defined as having 500 employees or fewer, create about 65 percent of all new jobs in the United States and also generate 13 times as many new patents

Blooms: Understand Learning Objective: 08-01 The role of opportunities, resources, and entrepreneurs in successfully pursuing new ventures. Level of Difficulty: 2 Medium Topic: Recognizing Entrepreneurial Opportunities Blooms: Understand Learning Objective: 08-01 The role of opportunities, resources, and entrepreneurs in successfully pursuing new ventures. Level of Difficulty: 2 Medium Topic: Recognizing

93. Running Press launched the Miniature Editions line of books in 1993. Today it has sold over 20 million copies. Which of the following most closely represents their strategy? A. differentiation B. overall cost leadership C. focus D. combinationIf a start-up enters a market with a broad

Chapter 09 Strategic Control and Corporate Governance Answer Key True / False Questions 1. TRUE Strategic control is the process of monitoring and correcting the strategy and performance of a firm. Two central aspects of strategic control are informational control (the ability to respond effectively

Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Multiple Choice Questions 66. Behavioral controls are aspects of strategic change that

93. Rule-based controls are least appropriate in organizations with which one of the following characteristics? A. Environments are stable and predictable. B. Employees are highly skilled and independent. C. There is consistency in product and service. D. The risk of malfeasance is extremely high. Rule based