Strategic Management

Topics: Strategic management, Management, Competition Pages: 3 (544 words) Published: June 22, 2013
BB309 – Strategic Management
Tutorial Questions
Chapter 1 – Strategic Management and Strategic Competitiveness


1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value creating strategy. (True or False)

2. The goal of strategic management is to develop a competitive advantage that is permanent.
(True or False)

3. Average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. (True or False)

4. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. (True or False)

5. Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past, but they must be reinforced by strategic flexibility. (True or False)

6. The two primary drivers of hypercompetition are the emergence of the global economy and technology.
(True or False)

7. The I/O (industrial organization) model assumes that the uniqueness of a firm’s resources and capabilities are its main source of above-average returns. (True or False)

8. The uniqueness of a firm’s resources and capabilities is the basis for a firm’s strategy and determines its ability to earn above-average returns under the I/O view. (True or False)

9. An effective vision statement will specify the market to be served (True or False)

10. Organizational mission statements typically do not include statements about profitability and earning above-average returns. (True or False)


1. The strategic management process is
|a. |a set of activities that will assure a sustainable competitive advantage and above-average returns for the firm. | |b. |a decision-making activity concerned with a firm’s internal resources, capabilities, and competencies, independent of | | |the conditions in its external...
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