1)What is the best reason for developing theoretical logic for the ideas and tools in a field?

	a.	Developing theory provides more confidence in causal relationships suggested by data.
	b.	Developing theory eliminates the need to provide evidence through data.
	c.	Developing theory improves the writing skills of professors and students.
	d.	Developing theory makes textbooks and articles more interesting to read.

2)

What does Montgomery not recommend about strategic leadership?

	a.	Leaders should communicate a compelling vision of how the firm can impact the world favorably.
	b.	Leaders should aim to create value for important stakeholders.
	c.	Leaders can outsource strategic management to consultants and focus on administrative tasks.
	d.	Leaders may have to revise strategies regularly to react to new developmen

3)

What is usually true of strategic groups within an industry?

		Incumbents in one strategic group will never enter another group.
		The strength of the competitive forces may vary across strategic groups.
		There is very little difference in strategies across strategic groups.
		Strategic groups comprise of potential new entrants to the industry.

4)

1. What is not a desirable approach in the process of formulating and implementing strategies?

   	a.	External and internal analysis must be vital inputs to the formulation process.
   	b.	The vision and values established by the leadership should guide strategic choices.
   	c.	Functional activities may need to be modified to help implement selected strategies.
   	d.	Review of the competitive position should stop once implementation is undertaken.

2. What is most likely to increase switching costs of a customer from a product?

   	a.	It takes some effort and time to learn how to use competing products.
   	b.	Complements of the product are compatible with other products.
   	c.	Several other comparable products are available.
   	d.	There are no financial penalties for discontinuing use of the product.