Hill--Essentials of Strategic Management 3e (3)

Hill--Essentials of Strategic Management 3e (3) -...

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ESSENTIALS OF STRATEGIC MANAGEMENT, 3RD EDITION CHAPTER 1 The Strategy-Making Process Name: __________________________ Date: _____________ 1. T F A strategy can be defined as a set of related actions that managers take to increase their company's performance relative to rivals. ANS: True PTS: 1 REF: 2 NAT: AACSB Analytic | AACSB Strategy 2. T F If a company's strategy does result in superior performance, it is said to have a competitive advantage. ANS: True PTS: 1 REF: 2 NAT: AACSB Analytic | AACSB Strategy 3. T F Superior performance is typically thought of in terms of one company's profitability relative to that of other companies in the same or a similar kind of business or industry. ANS: True PTS: 1 REF: 2 NAT: AACSB Analytic | AACSB Strategy 4. T F The more efficient a company is, the higher are its profitability and return on invested capital. ANS: True PTS: 1 REF: 2 NAT: AACSB Analytic | AACSB Strategy 5. T F Capital means the sum of money invested in the company, that is, stockholders' equity plus debt owed to creditors. ANS: True PTS: 1 REF: 2 NAT: AACSB Analytic | AACSB Strategy 6. T F A company is said to have a competitive advantage over its rivals when its profitability is greater than the average profitability for all firms in its industry. ANS: True PTS: 1 REF: 4 NAT: AACSB Analytic | AACSB Strategy 7. T F A company is said to have a sustained competitive advantage when it is able to maintain above-average profitability for at least two quarters. ANS: False PTS: 1 REF: 4 NAT: AACSB Analytic | AACSB Strategy 8. T F Managers are the lynch pin in the strategy-making process. ANS: True PTS: 1 REF: 5 NAT: AACSB Analytic | AACSB Strategy 9. T F General managers bear responsibility for specific departments within the company. ANS: False PTS: 1 REF: 5 NAT: AACSB Analytic | AACSB Leadership Principles 10. T F Functional managers bear responsibility for the overall performance of the company or one of its major self-contained subunits or divisions.
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2 Chapter 1: The Strategy-Making Process ANS: False PTS: 1 REF: 5 NAT: AACSB Analytic | AACSB Leadership Principles 11. T F A multi-divisional company is a company that competes in several different businesses and has created a separate, self-contained division to manage each of them. ANS: True PTS: 1 REF: 5 NAT: AACSB Analytic | AACSB Strategy 12. T F Corporate-level managers provide a link between the people who oversee the strategic development of a firm and those who own it (the shareholders). ANS: True PTS: 1 REF: 6 NAT: AACSB Analytic | AACSB Leadership Principles 13. T F The corporate-level of management consists of the chief executive officer (CEO), other senior executives, the board of directors, and corporate staff. ANS: True PTS: 1 REF: 6 NAT: AACSB Analytic | AACSB Leadership Principles 14. T F Corporate-level managers, and particularly the CEO, can be viewed as the agents of the shareholders.
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