1.D 2. A 3. A 4. D 5. A 6. B 7. C 8.

B
9. C 10. A 11. D 12. A 13. B 14. A 15. A 16. C
17. D 18. B 19. B 20. C 21. D 22. D

STRATEGIC MANAGEMENT LECTURE 1 QUIZ

1. Which of the following is an example of the mobility of strategies and resources across firms
in the mobile network industry?
A. Identifying marketplace opportunities and threats in the external environment
B. A tool manufacturer that announced it will increase its dividend payment—the highest
dividend amongst all of its industry competitors—for the upcoming quarter due to market
share gains in overseas markets
c. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers
d. The spread of 4G technology between Verizon, AT&T, and Sprint makes the high-speed
network available to nearly all mobile phone customers.

2. Logan is an entrepreneur and president of his own company that makes a new software
product that manages benefits administration for large multinational corporations. His startup
company grew quickly to a team of about 25. A new federal law recently passed by Congress
will cause small-business owners to invest in software like his to manage employee health care.
Logan announces that the company will be investing in training for employees to better
understand small-business owners and research and development (R&D) to create a small-
business version of the software. This is an example of:
a. having a strong strategic orientation and promoting innovation as a strategic leader.
b. He should start by thanking the team for their hard work on the project so far but explain the
company is no longer pursuing it. He should clearly articulate his vision for the future of the
company and the team and set a meeting to debrief on the project.
c. firms possess the same types of resources with value and those resources are mobile across
companies.
d. Summer camps for young children because the organization should use the knowledge of its
passionate volunteer to its greatest advantage

3. Cell phones and digital music files are examples of:

a. disruptive technologies.
b. rivalry tends to occur among global competitors who innovate regularly and successfully.
c. Determine the firm's capabilities.
d. formulating and implementing a value-creating strategy.

4. The industrial organization (I/O) model of above-average returns:

a. firms possess the same types of resources with value and those resources are mobile across
companies.
b. He should start by thanking the team for their hard work on the project so far but explain the
company is no longer pursuing it. He should clearly articulate his vision for the future of the
company and the team and set a meeting to debrief on the project.
c. Summer camps for young children because the organization should use the knowledge of its
passionate volunteer to its greatest advantage
d. puts emphasis on the external environment, which plays a role in determining a company's
ability to achieve above-average returns.
5. Which of the following could be a part of the analysis stage of the strategic management
process?
a. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers
b. A tool manufacturer that announced it will increase its dividend payment—the highest
dividend amongst all of its industry competitors—for the upcoming quarter due to market
share gains in overseas markets
c. The spread of 4G technology between Verizon, AT&T, and Sprint makes the high-speed
network available to nearly all mobile phone customers.
d. full set of commitments, decisions, and actions firms take to achieve strategic
competitiveness and earn above-average returns.

6. Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive
technologies. Which of the following is an example of a company that did not respond
strategically to technological changes?
a. The company's research into a new railcar guideline that requires all tanker cars to be replaced
or retrofitted over the next five years leads its leaders to start a business that manufactures tanker
cars to capitalize on the new demand.
b. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making
photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this
technology.
c. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision
allowing it an exemption from covering employees' contraceptives on religious grounds.
d. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.

7. According to your textbook, which of the following would be considered an important step in
the A-S-P strategic management process?
a. Determine the firm's capabilities.
b. a decision that would benefit from using the entire strategic management process.
c. Identifying marketplace opportunities and threats in the external environment
d. unique capabilities and resources of each company.

8. Product market stakeholders often have very different priorities, but each can exert power and
influence over a company. Which of the following correctly describes a way that a product
market stakeholder exerted its power to the potential detriment of a company?
a. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.
b. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision
allowing it an exemption from covering employees' contraceptives on religious grounds.
c. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making
photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this
technology.
d. The spread of 4G technology between Verizon, AT&T, and Sprint makes the high-speed
network available to nearly all mobile phone customers.

9. A multidivisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the industrial
organization (I/O) model of above-average returns to develop its strategy. Which of the
following decisions is consistent with this model?
a. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.
b. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision
allowing it an exemption from covering employees' contraceptives on religious grounds.
c. The company's research into a new railcar guideline that requires all tanker cars to be replaced
or retrofitted over the next five years leads its leaders to start a business that manufactures tanker
cars to capitalize on the new demand.
d. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making
photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this
technology.

10. In the resource-based model of above-average returns, a capability is:

a. the capacity for a set of resources to perform a task or an activity in an integrative manner.
b. The spread of 4G technology between Verizon, AT&T, and Sprint makes the high-speed
network available to nearly all mobile phone customers.
c. rivalry tends to occur among global competitors who innovate regularly and successfully.
d. full set of commitments, decisions, and actions firms take to achieve strategic competitiveness
and earn above-average returns.

11. According to the resource-based model of above-average returns, differences in firms'

performance across time can be attributed to the:
a. formulating and implementing a value-creating strategy.
b. Identifying marketplace opportunities and threats in the external environment
c. Determine the firm's capabilities.
d. unique capabilities and resources of each company.

12. Tockit is a children's toy developer that uses the resource-based model of above-average
returns. Which of the following steps does it use in its business?
a. Determine the firm's capabilities.
b. Identifying marketplace opportunities and threats in the external environment
c. disruptive technologies.
d. unique capabilities and resources of each company.
13. Marquis is the international operations manager for an athletic clothing line. As part of his
responsibilities, he regularly tours the factories of the company's suppliers. He recently took a
tour of one of the most efficient plants that delivers low-cost clothing. This gives his company a
greater profit margin. However, on the tour, he noticed an 8-year-old child operating one of the
machines. Which of the following best describes how Marquis should report back to his CEO
about the plant tour?
a. A tool manufacturer that announced it will increase its dividend payment—the highest
dividend amongst all of its industry competitors—for the upcoming quarter due to market share
gains in overseas markets
b. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.
c. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making
photography accessible to everyone. When innovators brought digital cameras to the
marketplace, Kodak focused on making it easy for people to print their photos using this
technology.
d. a decision that would benefit from using the entire strategic management process.

14. A local community arts nonprofit organization is seeking to expand its programming and is
considering putting just one new program in place this year. It may choose painting workshops
for people with disabilities, summer camps for young children, a musical performing arts series
for skilled musicians, or classes for seniors. The organization's most committed volunteer is a
kindergarten teacher who has offered to be the leader of whichever new program the
organization implements. If the nonprofit is utilizing the resource-based model of above-average
returns, in which of the following ways should it expand its programming?
a. Summer camps for young children because the organization should use the knowledge of its
passionate volunteer to its greatest advantage
b. having a strong strategic orientation and promoting innovation as a strategic leader.
c. puts emphasis on the external environment, which plays a role in determining a company's
ability to achieve above-average returns.
d. firms possess the same types of resources with value and those resources are mobile across
companies.

15. Firms achieve strategic competitiveness by:

a. formulating and implementing a value-creating strategy.
b. disruptive technologies.
c. full set of commitments, decisions, and actions firms take to achieve strategic competitiveness
and earn above-average returns.
d. unique capabilities and resources of each company.

16. Which of the following describes a company that has delivered above-average returns to its
investors?
a. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers
b. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.
c. A tool manufacturer that announced it will increase its dividend payment—the highest
dividend amongst all of its industry competitors—for the upcoming quarter due to market share
gains in overseas markets
d. The spread of 4G technology between Verizon, AT&T, and Sprint makes the high-speed
network available to nearly all mobile phone customers.

17. An assumption of the industrial organization (I/O) model of above-average returns that
supports the need for a firm to find the most attractive industry in which to compete is that:
a. puts emphasis on the external environment, which plays a role in determining a company's
ability to achieve above-average returns.
b. Summer camps for young children because the organization should use the knowledge of its
passionate volunteer to its greatest advantage
c. having a strong strategic orientation and promoting innovation as a strategic leader.
b. firms possess the same types of resources with value and those resources are mobile across
companies.

18. Michael is the CEO of a manufacturer with plants in three countries. He currently has a
product line that is manufactured only in the company's U.S. plant. That product has experienced
a steady increase in its export sales to Europe over the last three years. The international sales
director is recommending that the company expand manufacturing capabilities at the European
plant to include this product line. Michael and his management team must consider whether to
pursue this strategy. This is:
a. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers
b. a decision that would benefit from using the entire strategic management process.
c. Identifying marketplace opportunities and threats in the external environment
d. Marquis should bring this issue to the attention of the CEO and other top leadership
immediately. He has a personal, ethical objection to child labor and believes that it is also
inconsistent with the company's core values.

19. Organizational culture is the:

a. full set of commitments, decisions, and actions firms take to achieve strategic competitiveness
and earn above-average returns.
b. complex set of ideologies, symbols, and core values that individuals throughout the firm share
and that influence how the firm conducts business.
c. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision
allowing it an exemption from covering employees' contraceptives on religious grounds.
d. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers

20. Hypercompetition describes a competitive landscape in which:

a. full set of commitments, decisions, and actions firms take to achieve strategic competitiveness
and earn above-average returns.
b. the capacity for a set of resources to perform a task or an activity in an integrative manner.
c. rivalry tends to occur among global competitors who innovate regularly and successfully.
d. Identifying marketplace opportunities and threats in the external environment

21. The strategic management process is the:

a. formulating and implementing a value-creating strategy.
b. complex set of ideologies, symbols, and core values that individuals throughout the firm share
and that influence how the firm conducts business.
c. A review of a company's competitive landscape, identifying competitors, naming their
differentiations, and detailing a profile of those competitors' customers
d. full set of commitments, decisions, and actions firms take to achieve strategic competitiveness
and earn above-average returns.

22. Christopher is the manager of the development department for a large company. Recently, he
scheduled a meeting with a challenging objective—to discuss a failing project with one of his
product development teams. The project is costing a lot of time and money but does not appear
to have any return on investment in sight. Which of the following approaches would demonstrate
successful strategic leadership?
a. Summer camps for young children because the organization should use the knowledge of its
passionate volunteer to its greatest advantage
b. having a strong strategic orientation and promoting innovation as a strategic leader.
c. puts emphasis on the external environment, which plays a role in determining a company's
ability to achieve above-average returns.
d. He should start by thanking the team for their hard work on the project so far but explain the
company is no longer pursuing it. He should clearly articulate his vision for the future of the
company and the team and set a meeting to debrief on the project.