Section 1: Answer True or False (each answer is worth 5%) 1. Universities compete for the best students and professors in order to achieve superior performance. 2. Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders. 3. Humility is a weakness for level 5 leaders, because leaders must be strong and in control. 4. A firms capabilities are manifested in the firms structure, routines, and culture. 5. SWOT analysis is an outdated framework and is rarely used today by modern businesses 6. For core competencies to yield a competitive advantage they must be continuously nourished. 7. When a firm differentiates from rivals, this results in an increase in the cost of products and services. 8. A firms core competencies allow the firm to imitate rivals.

Section 2: Indicate the correct answer: A, B, C or D (each answer is worth 5%) 9. A successful strategy details a set of goal-directed actions that managers make to gain and sustain a competitive advantage; in order to create this strategy, managers must focus on three pillars. Which of the following below is not one of these pillars? A) formulation B) execution C) implementation D) analysis. 10. Which of the following stages of the strategic management process involves an evaluation of a firms external and internal environments? A) strategy analysis B) strategy implementation C) strategy formulation D) strategy control. 11. A firm always has a competitive disadvantage when its return on invested capital is A) below the industry average. B) 2 percent or lower in a declining industry. C) about the same as its closest competitor. D) declining steadily over two or more years. 12. Internal Firm strengths should be dynamic. This statement means that the internal firm strengths should: A. Adjust along with the external environment B. Be attractively marketed C. Be solid and rigid D. Always be determined by the environment. 13. Which of these is NOT a resource: A. Cash B. Buildings C. Competitors D. Machinery 14. Which of these is NOT an example of an activity: A. order taking B. physical delivery of products, or C. analysis of strategy D. invoicing customers. 15. The unique strengths of a company make up the companys A. Core competencies B. Core values C. Core mission D. Key strategy. 16. Through a SWOT analysis, a company may leverage internal strengths to exploit _______ opportunities.

A. external B. internal C. both internal and external D. unkown