Test Bank and Solutions For Strategic Management: Competitiveness and Globalization 13th Edition 13e By Michael A. Hitt PDF

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Solution Manual, Test Bank, eBook For Strategic Management: Competitiveness and Globalization 13th Edition By Michael A. Hitt, Ireland, Hoskisson + APLIA, MINDTAP Assignments & Quizzes. ...

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Chap01_13e Indicatewhetherthestatementistrueorfalse. 1. Thegoalofstrategyimplementationistodevelopapermanentcompetitiveadvantage. a. True b. False 2. TheCEOofTwinSpires,Inc.,iscommittedtousingtheexpertiseandresourcescurrentlyinthefirmtoserve theneedsofthenaturalgardeningcommunitybyprovidingrareandnativeplantstoindividualsandnurseries aroundtheUnitedStates.TheperspectiveoftheCEOofTwinSpiresisconsistentwiththeassumptionsofthe industrialorganization(I/O)model. a. True b. False 3. Hourlyworkersontheproductionlineofachicken-processingplantareconsideredorganizationalstakeholders a. True b. False 4. Thefirm'smissionismoreconcretethanitsvision. a. True b. False 5. Anorganization'swillingnesstotolerateorencourageunethicalbehaviorisareflectionofitscorevalues. a. True b. False 6. Theuniquenessofafirm'sresourcesandcapabilitiesisthebasisforafirm'sstrategyanditsabilitytoearn above-averagereturnsundertheindustrialorganization(I/O)model. a. True b. False 7. Therapidrateoftechnologicaldiffusionhasincreasedthecompetitivebenefitsofpatents. a. True b. False 8. ExamplesofincrementalinnovationsincludeiPads,Wi-Fi,andthewebbrowser. a. True b. False 9. Afirm'smissiontendstobeenduringwhileitsvisioncanchangeinlightofchangingenvironmentalconditions. a. True b. False 10. Above-averagereturnsarereturnsinexcessofwhataninvestorexpectstoearnfromotherinvestmentswitha similaramountofrisk. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap01_13e 11.Theassumptionsoftheindustrialorganizationmodelandtheresource-basedmodelarecontradictory. Therefore,organizationalstrategistsmustchooseoneortheothermodelasthebasisfordevelopingastrategic plan. a.True b.False 12.AlligatorEnterpriseshasearnedabove-averagereturnssinceitsfoundingfiveyearsago.Nootherfirmhas challengedAlligatorinitsparticularmarketniche;therefore,thefirm'sownerscanfeelsecurethatAlligatorha establishedacompetitiveadvantage. a.True b.False 13.Thefiveforcesmodelsuggeststhatfirmsshouldtargettheindustrywiththehighestpotentialforabove-averag returnsandthenimplementeitheracost-leadershipstrategyoradifferentiationstrategy. a.True b.False 14.Aneffectivevisionstatementmustspecifytheindustryinwhichacompanywilloperate. a.True b.False 15.RelTechisafirmintheelectronicsindustry.Itcouldprotectitsproprietarytechnologythroughpatents. However,itlikelywillnotapplyforpatentstokeepcompetitorsfromgainingaccesstothetechnological knowledgeincludedinthepatentapplication. a.True b.False 16.Incontrasttoshareholders,afirm'scustomerspreferthatinvestorsreceiveaminimumreturnontheir investments. a.True b.False 17.Theindustrialorganization(I/O)modelsuggeststhatabove-averagereturnsaredeterminedprimarilybythe firm'suniqueinternalresourcesratherthanbyexternalcapabilities. a.True b.False 18.Poweristhemostcriticalcriterioninprioritizingstakeholders. a.True b.False 19.Therateoftechnologydiffusionhasincreasedsignificantlyoverthelasttwodecades. a.True b.False

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Chap01_13e 20.Researchshowsthatagreaterpercentageofafirm'sprofitabilityisexplainedbytheI/Omodelratherthanthe resource-basedmodel. a.True b.False 21.Aneffectivevisionstretchesandchallengespeopleandcanresultinincreasedinnovation.Thisisillustratedby Apple'sCEOSteveJobs,whowasknowntothinkbiggeranddifferentlythanmostpeople. a.True b.False 22.Whenafirmearnslower-than-averagereturns,thehighestpriorityisgiventosatisfyingtheneedsofcapital marketstakeholdersovertheneedsofproductmarketandorganizationalshareholders. a.True b.False 23.Strategiccompetitivenessisachievedwhenafirmsuccessfullyformulatesandimplementsavalue-creating strategy. a.True b.False 24.ThenewCEOofOpacityEnterprisesisdeterminedtomakethelong-establishedfirmstrategicallyflexible.The CEOshouldunderstandthatthetaskisnoteasy,largelybecauseofinertiathatcanbuildupovertime. a.True b.False 25.Particularlywhenassessinginvestmentsinnewventurefirms,themosteffective,andoftentheonly,wayto measuretheperformanceofthefirmsanddeterminetheirviabilityasaninvestmentoptionistoexamine financialmetricssuchasreturnsonassets,andsales. a.True b.False 26.Thelocalgovernmentwithwhomafirminteracts,thepeoplewhobuyitsproducts,andthecontractorswho supplyrawmaterialsareallpartofafirm'scapitalmarketstakeholders. a.True b.False 27.Thedifferencebetweenaverageandabove-averagereturnsisthataveragereturnsarereturnsthataninvestor expectstoearnfromaninvestmentascomparedtootherinvestmentswithsimilarstockprices,whileaboveaveragereturnsareinexcessofexpectationsforsimilarlypricedstocks. a.True b.False 28.Toimplementafirm’sstrategies,thefirmtakesactionstoenacteachstrategywiththeintentofachieving strategiccompetitivenessandabove-averagereturns. a.True b.False Copyright Cengage Learning. Powered by Cognero.

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Chap01_13e 29.TheI/Oandresource-basedmodelscontainmanyofthesamesteps.Onecleardifferencebetweenthetwo modelsistheresource-basedmodelstartsbylookingattheinternalstrengthsandweaknessesofafirm,while theI/Omodelbeginswithanexaminationoftheexternalenvironment.AnotherkeydifferenceistheresourcebasedmodelidentifiesanattractiveindustrymuchearlierintheprocessthandoestheI/Omodel. a.True b.False 30.Riskintermsoffinancialreturnsreflectsaninvestor'suncertaintyabouttheeconomicgainsorlossesthatwill resultfromaparticularinvestment. a.True b.False 31.Ifafirmisdependentonaspecificstakeholdergroup,thatgrouphaslessinfluenceonthefirm’sstrategic decisionmaking. a.True b.False 32.Thetwoprimarydriversofhypercompetitionaretheemergenceoftheglobaleconomyandtechnology. a.True b.False 33.Sincethe1980s,thebasisforcompetitionhasshiftedfromintangibleresourcestohardassets. a.True b.False 34.Stakeholdersarepeoplelocatedindifferentareasandlevelsofthefirmusingthestrategicmanagementproces toselectstrategicactionsthathelpthefirmachieveitsvisionandfulfillitsmission. a.True b.False 35.Allofafirm'sresourcesandcapabilitieshavethepotentialtobethefoundationforacompetitiveadvantage. a.True b.False 36.Strategicleadersmusthaveastrongstrategicorientationwhilesimultaneouslyembracingchangeinthedynami competitivelandscape. a.True b.False 37.Strategyformulationandimplementationmustbesimultaneouslyintegratedforasuccessfulstrategic managementprocess. a.True b.False

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Chap01_13e 38.Sixyearsago,ColetteSmithfoundedasuccessfulcateringcompanythatspecializesinprovidingawide assortmentofminiaturecheesecakesforcorporateandsocialevents.AlthoughMs.Smithisnolongeractivein theactualproductionofthecheesecakes,shecontinuesaspresidentofthecateringcompany.Ms.Smithcould beconsideredastrategicleaderofthisfirm. a.True b.False 39.Economiesofscaleandhugeadvertisingbudgetsaremoreeffectiveinthenewcompetitivelandscapethanthe wereinthepast. a.True b.False 40.Companiessearchingforopportunitiesintheglobaleconomywouldlikelyconcludethatthethreeleading EuropeaneconomiesofGermany,UnitedKingdom,andFrancewouldbegoodinvestmentsbecausetheyare predictedtocontinueincreasinginsize. a.True b.False Indicatetheanswerchoicethatbestcompletesthestatementoranswersthequestion. 41.Organizationalculturerefersto: a.anintegratedandcoordinatedsetofcommitmentsandactionsdesignedtoexploitcorecompetenciesand gainacompetitiveadvantage. b.thecomplexsetofideologies,symbols,andcorevaluesthataresharedthroughoutthefirm. c.asetofcapabilitiesusedtorespondtovariousdemandsandopportunitiesexistinginadynamicand uncertaincompetitiveenvironment. d.howafirmacquires,uses,anddevelopsitsvariousresourcesandcapabilities. 42.Theindustrialorganization(I/O)modelarguesthatthe: a.keyfactorinsuccessischoosingthecorrectindustryinwhichtocompete. b.firm'sinternalresourcesandcapabilitiesrepresentthefoundationfordevelopmentofavalue-creating strategy. c.keytoearningabove-averagereturnsisstrategicflexibility. d.internalstructureoftheorganizationmustmatchtheindustryinwhichitcompetesforittoearnaboveaveragereturnsoninvestment. 43.Organizationalstakeholdersareusuallysatisfiedwhen: a.theirreturnoninvestmenthasbeenmaximized. b.customerspaythehighestsustainablepriceforthegoodsandservicestheyreceive. c.companiesprovideadynamic,stimulating,andrewardingworkenvironment. d.companiesarepayingthehighestpricestosuppliers.

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Chap01_13e 44.Effectivestrategicleadersemergeonthebasisoftheir: a.capabilitiesandaccumulationofhumancapitalandskillsovertime. b.single-mindedfocusonstrategyformation. c.aptitudeforstrategyimplementation. d.focusoninnovation. 45.Akeypurposeofavisionandmissionstatementistoinform_________whatafirmis,whatitseeksto accomplish,andwhoitseekstoserve. a.CEOs b.stakeholders c.regulators d.formeremployees 46.Globalizationhasledto: a.loweroperationalefficiency,asfirmsmusttransportrawmaterialsandfinishedgoodsfarther. b.increasingloyaltyofcustomersforproductsmadedomestically. c.decliningreturnsfrominvestmentinresearchanddevelopment. d.higherperformancestandardsincompetitivedimensions,includingqualityandcost. 47.__________innovationisatermusedtodescribehowrapidlyandconsistentlynew,information-intensive technologiesreplaceolderones. a.Perpetual b.Disruptive c.Global d.Diffusion 48.Theincreasingeconomicinterdependenceamongcountriesandtheirorganizationsasreflectedintheflowof goodsandservices,financialcapital,andknowledgeacrosscountrybordersisdefinedas: a.hypercompetition. b.boundarylessretailing. c.strategicintensity. d.globalization. 49.Theindustrialorganization(I/O)modelisgroundedin: a.anthropology. b.psychology. c.economics. d.accounting.

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Chap01_13e 50.Sandy,alinemanagerontheproductionflooratOakwayIndustries,isanentry-levelmanager.Sandyhasa strongcommitmenttotheOakway'svisionandmission.Shehasgoodrelationshipswithworkersonherlineas wellaswithemployeesthroughoutOakway.Sandyisabletomakedecisionsontheflytokeepthelinemoving, andotherlinemanagersoftenaskforherhelpintroubleshootingdifferentsituations.Whichofthefollowing bestcharacterizesSandy? a.Sandyisastrategicleader. b.Sandyisassuminginappropriateresponsibilityconsideringherpositioninthefirm. c.Sandyislikelytobepromotedintoanupper-managementpositionwhereshewouldbecomeastrategic leader. d.IfSandywereusingthesesameskillstodeterminestrategy,perhapsinthefinancedepartmentrather thanontheproductionline,shewouldbeconsideredastrategicleader. 51.AllofthefollowingareresourcesofanorganizationEXCEPT: a.anhourlyproductionemployee'sabilitytocatchsubtlequalitydefectsinproducts. b.oildrillingrightsinapromisingregion. c.weakcompetitorsintheindustry. d.acharity'sboardofdirectorsofexperiencedexecutives. 52.AlibabaisacompanyintheInternetservicesindustrythathasimproveditsperformancebyfocusingonits uniqueabilitiesintheareaofinnovationandservicediversification.Thisimprovedperformanceisbestexplaine by: a.globalization. b.theresource-basedmodel. c.theindustrialorganization(I/O)model. d.hypercompetition. 53.Alargecorporationhasearnedareputationforbeingachallengingworkenvironmentforemployees,placing demandsonemployees’timeandpushingthemtoaccomplishtasks,sometimeswithlittlerecognition.Arecent auditfoundthatthecompanywasdenyingemployeesovertimepaydespitetheextrawork.Thisisareflection ofthecompany’s: a.corevaluesofhardworktogainadvancement. b.unethicalorganizationalculture. c.lackofanorganizationalmission. d.searchforitscorecompetencies. 54.Aforward-lookinganalysissuggeststhatmarketsin__________willyieldsignificantopportunities,astheir economies,whilecurrentlynotthelargest,areexpectedtogrowsignificantlyinthefuture. a.theEuropeanUnion b.GermanyandIndia c.IndiaandChina d.ChinaandJapan

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Chap01_13e 55.Therateoftechnologicaldiffusionhasincreasedsubstantiallyoverthepast15to20years.Whichofthe followingwasfastestinpenetrating25percentofhomesintheUnitedStates? a.Radio b.Television c.Personalcomputers d.Internet 56.Aretailoutletcanattemptseveralremediestoimproveprofitabilitytomeettheexpectationsofits__________ stakeholders,includingclosingstores,changingthetopmanagementteam,andseekingpotentialbuyers. a.productmarket b.capitalmarket c.organizational d.governmental 57.Amajorassumptionaboutthestrategicmanagementprocessisthatitis: a.inspired. b.team-based. c.rational. d.inclusive. 58.Intheresource-basedmodel,whichofthefollowingfactorswouldbeconsideredakeytoorganizational success? a.Uniquemarketniche b.Weakcompetition c.Economiesofscale d.Skilledemployees 59.Thegoaloftheorganization's__________istopointthefirminthedirectionofwhereitwouldliketobeinth yearstocome. a.vision b.mission c.culture d.strategy 60.Inthestrategicmanagementprocess,A-S-Pstandsfor: a.analyses,successes,andpurposes. b.analyses,strategies,andperformance. c.ability,strategies,andpurposes. d.ability,successes,andperformance.

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Chap01_13e 61.Insmaller,newventurefirms,returnsaresometimesmeasuredintermsof: a.returnonassets. b.returnonequity. c.returnonsales. d.theamountandspeedofgrowth. 62.Evenforcompaniescapableofsucceedinginglobalmarkets,itiscriticalthatthey: a.remaincommittedtoandstrategicallycompetitiveintheirdomesticmarket. b.introducemanynewproductsimmediatelyafterenteringanewmarket. c.acquirealocalcompetitorineachsignificantforeignmarket. d.developgoodnegotiatingskillsinordertotakeadvantageoflocalsuppliersintheinternationalmarket. 63.In2018,__________wasthesecond-largesteconomyintheworld. a.theUnitedStates b.theEuropeanUnion c.Japan d.China 64.GlenOakCorp.isconductingananalysistodeterminewhichstrategieswouldbestenablethefirmtoachieve above-averagereturns.Howmightthefirmbestmakeuseofthedifferentmodelsavailabletoselectstrategies anddeterminehowtoimplementthem? a.Thefirmshouldfirstfocusoninternalfactors,usingaresource-basedmodeltoacquirenecessaryassets andskills. b.Thefirmshouldfirstfocusonexternalfactors,usinganI/Omodeltoidentifythefirm'scompetitive advantage. c.Ifthefirmshouldwriteavisionandmission,andthenusetheI/Oorresource-basedmodelthatbest alignswiththosestatements. d.ThefirmshoulduseboththeI/Omodelandtheresource-basedmodeltofocusonfactorsoutsideand insidethefirmatthesametime. 65.AllofthefollowingarecharacteristicsoftheglobaleconomyEXCEPT: a.theincreasingimportanceofemergingeconomiesassourcesofrevenuegrowth. b.thefreemovementofgoods,services,people,skills,andideasacrossgeographicborders. c.theincreaseduseoftariffstoprotectindustries. d.higherlevelsofopportunitiesandchallengesinnewgeographicmarkets. 66.Theprimarydriversofhypercompetitionare__________and__________. a.risingglobalsocio-economicinstability;increasedinflation b.theemergenceofaglobaleconomy;rapidtechnologicalchange c.increasedglobalcompetition;decreasedtariffs d.increasedavailabilityofcapital;increasedcompetition

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Chap01_13e 67.TheCEOofRidgeway,Inc.,realizesthatthecompany'ssurvivaldependsondevelopingandacquiring knowledge.WhichofthefollowingactionsbytheCEOwouldbeMOSTconsistentwiththisneed? a.Ensuringthatallcurrent,uniqueknowledgeofthefirmisprotectedbypatents b.Planningextensiveemployeetrainingandhiringeducatedandexperiencedemployees c.Investinginsophisticateddatabasesinrelevantknowledgeareas d.Establishingasystemoforganizationalintelligencegathering 68.RefugeNursingHomes,Inc.,(RNH)hasbeenhighlyprofitableinthepast10years,providingitsinvestors higherreturnsthanthoseearnedbyitsdirectcompetitors'investors.RNHhasareputationforprovidinghighpayingmanagerialandhourly-employeejobs.However,recentinvestigationshaverevealedthatthenursing homeresidentshavebeenprovidedsubstandardcare,includingnon-nutritiousandunappetizingmeals,nonfunctionalmedicalequipment,andinadequatepatient-carestaffing.Whichofthefollowingstatementsbest describesthesituation? a.RNHhasbeenearningbelow-averagereturns,soithashadtoprioritizethedemandsofitsvarious stakeholders. b.RNHhasprioritizedthedemandsofcapitalmarketstakeholdersandorganizationalstakeholdersoverthe demandsofproductmarketstakeholders. c.RNHhasearnedabove-averagereturnsandsohassatis...