Research shows that the vast majority of acquisitions results in value creation rather
than value destruction.
It is not necessary for a core competence to be difficult to imitate or to be
nonsubstitutable.
Arbitrage opportunities in global financial markets are more attractive to local
companies than global corporations, because they enable them to buy in huge volume
and therefore increase their bargaining power with suppliers.
Real options logic is useful when corporations consider stock options as a way to
finance entrepreneurial ventures.
For a resource to provide a firm with potential sustainable advantages it must satisfy
only two criteria: rareness and difficulty in substitution.
Political barriers to change can be overcome by promoting collaboration throughout the
organization, as seen in the case study on Natura Cosmeticos of Brazil in which CEO
Carlucci implemented a comprehensive engagement process across the organization.
A cost leadership strategy can be at risk of obsolescence of the basis of the cost
advantage.
As firms downsize, a control system based on rewards and culture becomes
dysfunctional.
The resource-based view of the firm focuses solely on the internal analysis of the
operations of the firm.
One potential downside of building social capital in an organization is groupthink. This
means everyone in the group thinks on his or her own and comes up with new ideas.
The strengths and weaknesses of a SWOT analysis refer to the external conditions of
the firm.
As investors, venture capitalists rarely provide any help or services to entrepreneurial
firms other than financing.
Creation of new knowledge typically involves the continual interaction of explicit and
tacit knowledge.