Concepts and Cases - Strategic Management and Competitive Advantage,...

Strategic Management and Competitive

Advantage:

Concepts and Cases Sixth Edition (Global Edition) Jay B. Barney William S. Hesterly Test Bank for 1 / 4

1 Copyright © 2019 Pearson Education, Inc.Strategic Management and Competitive Advantage, 6e (Barney) Chapter 1 What is Strategy and the Strategic Management Process?1) A firm's ________ is defined as its theory about how to gain competitive advantages.

• objective
• mission
• vision
• strategy

Answer: D

Diff: 1 Page Ref: 4 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

2) A sequential set of analyses and choices that can increase the likelihood that a firm willchoose a strategy that generates competitive advantages is theA) organizational change process.B) strategic management process.C) mission statement process.D) goal setting process.Answer: B Diff: 2 Page Ref: 5 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.AACSB: Analytical Thinking 3) A firm's ________ is its long-term purpose that defines both what it aspires to be in the longrun and what it wants to avoid in the meantime.

• mission
• strategy
• objective
• goal

Answer: A

Diff: 1 Page Ref: 5 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

4) The strategic management process begins when a firmA) determines its objectives.B) defines its mission.

• makes a strategic choice.
• implements its strategy.

Answer: B

Diff: 2 Page Ref: 5 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking 2 / 4

2 Copyright © 2019 Pearson Education, Inc.5) Firms whose mission is central to all they do are known as ________ firms.

• missionary
• emergent
• parity
• visionary

Answer: D

Diff: 2 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

6) From 1926 to 1995, visionary firms earned ________ returns compared to firms that were not visionary firms.

• substantially lower
• substantially higher
• marginally lower
• equivalent

Answer: B

Diff: 2 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

7) The mission statements of visionary firms

• suggest that profit maximizing, while an important corporate objective, is not their primary

reason for existence.

• suggest that profit maximizing is neither an important corporate objective nor their primary

reason for existence.

• suggest that profit maximizing is their primary reason for existence.
• suggest that value maximizing is their primary reason of existence.

Answer: A

Diff: 2 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

8) Which of the following statements regarding firm mission is accurate?

• While some firms have used their missions to develop strategies that create significantcompetitive advantages, firm missions can hurt a firm's performance as well.B) Virtually all firms have used missions to develop strategies that create significant competitiveadvantages, while very few firms have used missions that can hurt their performance.
• It is very rare for firms to be able to use their missions to develop strategies that create

significant competitive advantages, and most firm missions actually hurt their performance.

• Missions tend to have very little impact on a firm's ability to create significant competitive

advantages.

Answer: A

Diff: 3 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking 3 / 4

3 Copyright © 2019 Pearson Education, Inc.9) ________ are specific measurable targets a firm can use to evaluate the extent to which it is realizing its mission.

• Strategies
• Missions
• Competitive advantages
• Objectives

Answer: D

Diff: 1 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

10) High quality objectives are those that areA) tightly connected to elements of a firm's mission and are relatively easy to measure and track over time.

• difficult to measure and track over time.
• non-existent.
• not quantitative.

Answer: A

Diff: 2 Page Ref: 6 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

11) By conducting a(n) ________, a firm identifies the critical threats and opportunities in itscompetitive environment.A) internal analysisB) competitive analysis

• external analysis
• strategic choice

Answer: C

Diff: 1 Page Ref: 7 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

12) ________ helps a firm understand which of its resources and capabilities are likely to besources of competitive advantage.A) Competitive analysisB) Internal analysisC) Strategic choice

• External analysis

Answer: B

Diff: 2 Page Ref: 7 Learning Obj.: 1.1: Define Strategy and Describe the Strategic Management Process.

AACSB: Analytical Thinking

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