T/F Questions (MANA Midterm)

Question 1

The strategic management process should be addressed only by top‐level executives. Mid‐level
and low‐level employees are best equipped to implement the strategies of the organization.

Answer 1

F

Question 2

Trade‐off decisions between effectiveness and efficiency are important in the practice of
strategic management.

Answer 2

T

Question 3

Once established, competitive advantages last forever whether the firm is in a high technology
environment or not.

Answer 3

F

Question 4

The market life cycle should be used for short‐run forecasting because it provides a conceptual
framework for understanding what changes typically occur over the life of an industry.

Answer 4

F

Question 5

Firms achieve and sustain differentiation advantages and attain above‐average performance
when their price premiums do not exceed the extra costs incurred in being unique.

Answer 5

F

Question 6

A differentiator will always seek out ways of distinguishing itself from similar competitors to
justify price premiums greater than the costs incurred by differentiating.

Answer 6

T