Foundations Of Strategy 2nd Edition By Grant – Test Bank

1. In the first decade of the 21^st century, firms had to contend with an increasingly volatile and complex business environment.

@Pages and References: Pages 344-345

*a. T

1. F

2. Black swan events are extreme events that economic commentators and senior managers have long predicted

@Pages and References: Page 345

1. T

*b. F

3. The expansive fiscal and monetary policies adopted by the governments of the US, Europe and Japan following the 2008 financial crisis have accelerated economic growth in countries across the globe

@Pages and References: Pages 3

1. T

*b. F

4. A number of companies from emerging-market economies are acquiring Western companies and transforming themselves into global competitors

@Pages and References: Page 346

*a. T

1. F

5. It is increasingly common to find firms that were once contract manufacturers for Western companies competing with products sold under their own brand names

@Pages and References: Page 346

*a. T

1. F

6. Although the Internet and digitization has had a major impact on business processes, in the main, industry configurations have remained unchanged.

@Pages and References: Pages 346-347

1. T

*b. F

7. One of the consequences of the 2008/2009 financial crisis was the loss of legitimacy that many companies suffered.

@Pages and References: Pages 347-348

*a. T

1. F

8. A loss of social legitimacy affects a firm’s reputation with its customers but rarely influences the attitude of other stakeholders e.g. employees and investors.

@Pages and References: Pages 347-348

1. T

*b. F

9. Despite the claims, there is little evidence to suggest that income disparities have widened over time.

@Pages and References: Pages 347-348

1. T

*b. F

10. The propensity of the capitalist system to generate increasing inequality is a core thesis of the work of the French economist, Thomas Piketty

@Pages and References: Pages 347-348

*a. T

1. F

11. State capitalism is a form of capitalism where the government owns and controls all the financial and physical resources used in the production process

@Pages and References: Pages 347-348

1. T

*b. F