ch1 - Chapter 1Strategic Management and Strategic...

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Chapter 1—Strategic Management and Strategic Competitiveness TRUE/FALSE 1. The effect of globalization on Boeing is only negative and is due solely to direct competition with European-based competitor Airbus. ANS: F PTS: 1 DIF: Medium REF: 3-4 OBJ: 01-01 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 2. One way to evaluate if Airbus had achieved above average returns would be to compare stock market returns against those of Boeing. ANS: T PTS: 1 DIF: Medium REF: 3-4 OBJ: 01-01 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 3. Strategic competitiveness is achieved when a firm successfully formulates and implements a value- creating strategy. ANS: T PTS: 1 DIF: Easy REF: 4 OBJ: 01-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- 4. Alligator Enterprises has earned above-average returns since its founding five years ago. Since no oth- er firm has challenged Alligator in its particular market niche, the firm’s owners can feel secure that Alligator has established a competitive advantage. ANS: F PTS: 1 DIF: Hard REF: 5 OBJ: 01-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing the task environment 5. The goal of strategic management is to develop a competitive advantage that is permanently sustain- able. ANS: F PTS: 1 DIF: Medium REF: 5 OBJ: 01-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- 6. Risk in terms of financial returns reflects an investor’s uncertainty about economic gains that will res- ult from a particular investment. ANS: T PTS: 1 DIF: Easy REF: 5 OBJ: 01-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Foundational skills
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7. Average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. ANS: F PTS: 1 DIF: Medium REF: 6 OBJ: 01-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Foundational skills 8. Returns can only be measured in accounting terms. ANS: F PTS: 1 DIF: Easy REF: 6 OBJ: 01-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Foundational skills 9. If a firm can earn at least average returns it will be able to survive. ANS: T
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This note was uploaded on 04/07/2010 for the course ERRE 2324 taught by Professor Dsfdsf during the Spring '10 term at University of South Africa.

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ch1 - Chapter 1Strategic Management and Strategic...

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