1.A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.
- strategic competitiveness
- a permanently sustainable competitive advantage
- substantial returns
- legal and ethical core values
2.Above-average returns are:
- higher profits than the firm earned last year.
- higher profits than the industry average over the last 10 years.
- profits in excess of what an investor expects to earn from a historical pattern of performance of the firm.
- profits in excess of what an investor expects to earn from other investments with a similar level of risk.
3.The strategic management process is
- a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm.
- a decision-making activity concerned with a firm's internal resources, capabilities, and competencies, independent of the conditions in its external environment.
- a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization’s resources.
- the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.
4.The economic interdependence among countries as reflected in the free movement of goods, services, financial capital and knowledge across geographic borders is defined as
- hypercompetition.
- boundaryless retailing.
- strategic intensity.
- globalization.
5.All of the following are assumptions of the industrial organization (I/O) model EXCEPT,
- Organizational decision makers are rational and committed to acting in the firm's best interests.
- Resources to implement strategies are firm-specific and attached to firms over the long-term.
- The external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns.
- Firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.
6. To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, ____, and ____.
- unique, easy to imitate.
- easy to imitate, difficult to implement.
- rare, costly to imitate.
- easy to implement, unique.
7.The goal of the organization’s ____ is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams.
- Vision
- Mission
- Culture
- Strategy
8.Capital market stakeholders include
- industry competitors.
- shareholders.employees.
- government regulators.
9.Organizational stakeholders include
- Unions.
- host communities.
- employees.
- suppliers of capital.
10.Product market stakeholders include
- Suppliers
- Shareholders
- Employees
- the firm's chief executive officer