Underlying problems can be discovered by assessing financial ratios such as operating
liquidity and debt ratios.
Vision and mission statements are statements of organizational identity and purpose that
can guide executives in making corporate decisions.
Directors may be more effective as monitors if they are linked to certain firms given the
environmental turbulence facing the focal firms.
The purchase price is almost always greater than current market value.
Corporations can use alliances to create value across a portfolio of products or services.
Competitive advantage is inextricably linked to a firm’s human capital.
Both unrelated and related diversification can create serious managerial problems.
Firms typically enter arenas randomly, without much logic.
Integration problems can arise during the idea generation and justification stages.
Objectives are specific measurable steps for reaching goals.
Firms in industries with declining R&D costs seek a larger revenue base, typically
outside their home countries.
The more unique markets in similar regions are, the greater the pressure for an industry
to globalize.
According to the trait leadership theory, effective leaders may be classified according to
personality differences.
Horizontal alliances are more likely to succeed when the partners are co-industry
leaders.
One of the key roles of the board of directors is to replace management when necessary.
The global configuration allows for much more autonomy in foreign subsidiaries than
either the multinational or international models.
Research and development is generally a firm’s largest operating cost.
The multidivisional structure enables firms to design compensation systems that reward
performance at the functional level.
To develop a global mind-set, firms must be able to take knowledge gained in one
market and apply it elsewhere.
What factors contribute to barriers to entry?
What are some possible ways to minimize the risk that one partner may take advantage
of another?
What are the phases of the lifecycle of strategic alliances?