Chapter1 xercise and test.docVIP

Chapter1 exercise and test 一、TRUE/FALSE: 1.The effect of globalization on Boeing is only negative and is due solely to direct competition with European-based competitor Airbus.( ) 2.One way to evaluate if Airbus had achieved above average returns would be to compare stock market returns against those of Boeing.( ) 3.Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.( ) 4.Alligator Enterprises has earned above-average returns since its founding five years ago. Since no other firm has challenged Alligator in its particular market niche, the firm!ˉs owners can feel secure that Alligator has established a competitive advantage.( ) 5. The goal of strategic management is to develop a competitive advantage that is permanently sustainable. 6. Risk in terms of financial returns reflects an investor’s uncertainty about economic gains that will result from a particular investment. 7. Average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. 8. Returns can only be measured in accounting terms. 9. If a firm can earn at least average returns it will be able to survive. 10. Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past, but they must be reinforced by strategic flexibility. 11. Wal-Mart is trying to achieve a boundaryless retailing empire by implementing global pricing, sourcing, and logistics. 12. It is still possible for a firm to escape the demands of globalization by operating solely in its domestic market. 13. The rate of technology diffusion has been steadily increasing over the last two decades. 14. A created a competitive advantage and an entirely new industry by making use of disruptive technology. 15. Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. 16. The value of patents on inventions is increasing because