A firm that formulates and implements a strategy that leads to superior performance has competitive advantage.
Competitive advantage is an absolute measure of superior firm performance. True False
The essential core of strategy is doing the same thing as your rivals but being more effective at it. True False
The term strategy is meant to describe the firm's overall quest for competitive advantage. True False
Assumptions have no major role in the development of strategies for an organization. True False
Industry effects clearly are more significant than firm-level effects on firm performance. True False
Business strategy concerns the choice of strategy in terms of where to compete. True False
A business model is not directly connected to how a firm makes money. True False
IBM as a U.S. company has a majority of its revenues from the United States. True False
10. BRIC countries include Britain, Russia, Ireland, and Chile and are likely to be the fastest-growing economies in the world.
11. Firms will refer to the "bottom of the pyramid" of the global economy for significant business opportunities, thus improving the living standard of the world's poorest. True False
12. Crowdsourcing is where a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.
13. The AOL TimeWarner merger is viewed as beneficial for shareholder value. True False
14. Stakeholders cannot exert a powerful influence on firms. True False
15. The AFI Strategy Framework is used by managers to implement a human resource strategy for all employees within a firm.
16. Google's initial competitive advantage over AltaVista and Yahoo was what? A. Its location in Menlo Park
B. The PageRank algorithm
C. Brand recognition
D. The Keywords product
17. What might Microsoft have used their 1998 purchase of LinkExchange to build a competitive advantage in?
A. Online search and advertising
B. Cloud storage
C. Business Intelligence Tools
D. Server Virtualization
18. Microsoft is building up its share of the search engine market by partnering with which firm? A. AltaVista
19. Microsoft is partnering with Yahoo for what major purpose? A. To improve their search speeds
B. To remove Yahoo as a competitor
C. To build market share for its Bing search engine
D. To compete with Apple
20. Which of the following is NOT a major component of the overarching integrative management field of strategic management?
A. Financial investment strategy
21. The Oakland A's used new metrics to assess player potential. This gave them an ability to do what? A. Use their high-salary athletes to their best advantage
B. Publish new metrics in the Oakland Tribune newspaper
C. Launch a new advertising campaign for season tickets
D. Field low-cost teams that were still competitive
22. It appears that Google has a sustained competitive advantage because _________. A. They are highly profitable and growing
B. They have outperformed rivals consistently over time
C. They currently have the leading online search engine
D. They are willing to take on the Chinese government
23. Duke basketball winning by two points over Butler in the 2010 NCAA championship game is an example of what?
A. A competitive parity
B. A sustained competitive advantage
C. A temporary competitive advantage
D. A competitive business model
24. If Smith Pharmaceuticals has a 15% return on invested capital (RoIC), what do you need to know to determine if it has a competitive advantage?
A. It must be compared to the RoIC of the competitors and industry. B. Nothing, 15% is a terrific return for the shareholders.
C. It must be evaluated for depreciation of the...
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