Question 1 Porter's 5 Forces framework does not give us all answers and may be criticized in many ways.

True

False

Question 2 Which one of the following is not a primary task of strategic managers?

A. Establishing strategic objectives B. Developing the steps to follow in implementing operational level plans C. Defining the business and developing a mission D. Developing a strategy

E. Implementing and evaluating the chosen strategy

Question 3 The fundamental role of strategy is to:

A. Determine how the firm will make a profit in its industry environment: B. Determine how the firm will deploy its resources to satisfy its short-term financial goals C. Determine how the firm will deploy its resources to satisfy its long-term goals, given the conditions in the competitive environment D. Determine how the firm can organize its own activities and achieve dominance

Question 4 "Industry attractiveness in the five forces framework by Porter refers to:

A. the appeal of the industry to a particular firm

B. the extent to which the industry draws in new entrants

C. potential overall industry profitability

D. the potential for one firm to dominate the industry

Question 5 Which of the following is the best example of competing on low-cost leadership? A. a firm produces its product with less raw material waste than its competitors B. a firm offers more reliable products than its competitors C. a firm's products are introduced into the market faster than its competitors' D. a firm's research and development department generates many ideas for new products E. a firm advertises more than its competitors