Strategic Management Overview Quiz

Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating __________.

Competitive advantage is gained when an organization implements a strategy that creates superior value for customers and is easily duplicated by competitors.

The chosen strategy indicates only what the firm will do, not what the firm will not do.

Competitive advantage is considered permanent and does not change over time.

Strategic management involves making choices among competing alternatives as the pathway for deciding how to pursue strategic competitiveness.

Competitors' efforts to duplicate an organization's strategy cease or fail before the organization can be confident that its strategy has resulted in useful competitive advantages.

The speed with which competitors acquire the skills needed to duplicate a firm’s value-creating strategy has no impact on the duration of the competitive advantage.

Above-average returns are returns that exceed what an investor expects to earn from other investments with a similar amount of risk.

Risk refers to an investor's certainty about the economic gains or losses that will result from a particular investment.

The most successful companies do not focus on effectively managing risk.

Returns can only be measured in terms of accounting figures, not stock market returns.

Average returns are returns equal to those an investor expects to earn from other investments with a similar amount of risk.

Inability to earn average returns eventually results in decline and then failure for firms.

The strategic management process involves analysis, strategy, and performance, known as the A-S-P model.

A firm's strategy is not based on its resources, capabilities, and core competencies.

The dynamic strategic management process does not need to be adjusted as markets and competitive structures evolve.

Conventional sources of competitive advantage such as economies of scale and huge advertising budgets are as effective as they once were due to social media advertising.

Managers must adopt a new mind-set that values inflexibility, sluggishness, and stagnation to lead a firm to strategic competitiveness.

Hypercompetition describes competition that does not create inherent instability and necessitate constant disruptive change for firms in the competitive landscape.

A global economy is one in which goods, services, people, skills, and ideas move freely across geographic borders, constrained by artificial obstacles such as tariffs.

The strategic management process reduces the likelihood of failure for firms as they encounter the conditions of today’s competitive landscape.

Effective use of the strategic management process eliminates the need for constant disruptive change for firms in the competitive landscape.

Competitive advantage is considered permanent and does not change over time.

In a hypercompetitive market, firms often passively accept their competitive position without challenging their competitors.

Risk refers to an investor's uncertainty about the economic gains or losses that will result from a particular investment.

Above-average returns are returns that do not exceed what an investor expects to earn from other investments with a similar amount of risk.

The boundaries of the entertainment industry have become more defined due to advances in interactive computer networks and telecommunications. True or False?

Internet-only streaming services are not competing with cable, satellite, and telecommunication offerings. True or False?

Netflix and other streaming content providers are not producing their own content. True or False?

The competitive landscape is not changing significantly in many of the world’s industries. True or False?

Existing cable companies and satellite networks are not facing competition from telecommunication companies moving into the entertainment business. True or False?

Competitive advantage is considered permanent and does not change over time. True or False?