1. Which of the following strategies does Twitter need to implement to increase its competitive advantage?
A. charge no fee to individual users
B. increase its user base
C. deliver ads in real time
D. allow core users to stay always connected
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2. _ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.
A. Supply chain management
B. Integrated technology management
C. Strategic management
D. Inventory management
3. _ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.
A. Behavior modification
B. Strategy
C. Credo
D. Competency management
4. Which of the following stages of the strategic management process involves an evaluation of a firm’s external and internal environments?
A. strategy analysis
B. strategy implementation
C. strategy formulation
D. strategy control
5. A firm that achieves superior performance relative to other firms in the same industry
or the industry average has a(n)
A. competitive
advantage.
B. balanced
scorecard.
C. power
position.
D. equity
leverage.
8. Patterson Foods Inc. was the first company to start selling energy bars in its country —a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of energy bars, thereby giving Patterson Foods ample competition. In response, Patterson Foods decided to limit its variety of energy bars to only four. However, it ensured that these four varieties were low in calories and low in cost. With this innovation, Patterson Foods Inc. consistently outperformed its competitors for ten years. In this scenario, Patterson Foods Inc. maintained a _
through its innovative strategy.
A. balanced scorecard
B. fiduciary responsibility
C. consistent power position
D. sustainable competitive advantage
9. If SA Pharmaceuticals obtains an 18 percent return on invested capital, which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?
A. comparing the return to the return on invested capital obtained by other firms in the industry
B. assessing the value based on the shareholders’ expectations of return on their capital
C. evaluating the liquidity ratios for other pharmaceutical companies
D. comparing the value to the history of the firm’s return of investment over a number of years
10. In _, a firm frames a guiding policy to address the competitive challenge.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
11. Through _, a firm puts its guiding policy into practice by employing a set of
coherent actions.
A. strategy control
B. strategy implementation
C. strategy formulation
D. strategy analysis
12. Which of the following scenarios illustrates a firm that has a sustainable competitive
advantage?
A. Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000.
B. CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year’s sales of 5,000 units, though the industry average is 10,000 units.
C. Zhang Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.
D. Peak Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months.
71. Paying taxes to local government authorities from the annual revenues generated by
a firm represents the firm’s _ responsibilities.
A. philanthro pic
B. economic
C. psychographic
D. politic al
72. Which of the following is typically an economic responsibility of a firm?
A. sourcing raw materials from highly developed countries
B. paying adequate returns to the firm’s stockholders on the capital invested by them
C. donating resources, in terms of money and time, toward community development
D. helping a nation increase its import of goods and services
73. A firm’s economic responsibilities are primarily directed toward
A. minimizing shareholders’
wealth.
B. acting as a good corporate
citizen.
C. doing what is right, just, and
fair.
D. gaining and sustaining competitive
advantage.
74. The minimum wage in the country of New Morland is $8 an hour. Odion, a restaurant in New Morland’s capital city, pays its servers $8 per hour. However, the management of the restaurant feels that this amount is excessive for workers whose only job is to clear tables. By continuing to adhere to the rules set by the government of New Morland, which of the following responsibilities is Odion satisfying?
A. legal
responsibilities
B. philanthropic
responsibilities
C. ethical
responsibilities
D. demographic
responsibilities
102. Which of the following is an example of fulfilling philanthropic responsibilities?
A. A dentist lowers his fees to make his practice more
competitive.
B. A legal firm donates large amounts of money to
charities.
C. A skateboard manufacturer builds a handicap entrance
required by law.
D. A toy manufacturer changes a product to comply with safety
standards.
103. In 2010, an explosion of a BP oil drill resulted in the deaths of 11 workers and the
largest environmental disaster in U.S. history. The BP CEO was fired because of his
ineffective handling of the crisis. The CEO lost his job because he failed to uphold
_ responsibilities.
A. economi
c
B. leg
al
C. ethic
al
D. philanthro
pic
104. Which of the following is notcompetitive strategy?
A. strategic
positioning
B. unique
activities
C. product
differentiation
D. operational effectiveness
105Which of the following provides an example of what AFI strategy framework is used
for?
A. Using AFI, the Gasquet Motor Company was able to implement a strategy that
produced high-quality cars more efficiently and thereby reduced costs.
B. Using AFI, the Chen Restaurant Group was able to improve employee benefits and
thereby increase employee loyalty.
C. Using AFI, the Sanchez Clothing Company was able to implement a strategy that
allowed them to give more money to charities and thereby gain good press.
D. Using AFI, the Richardson Tea Group was able to reduce the pollution it caused
while processing tea and thereby receive an award.
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