Historical comparisons are most appropriate during periods of recession or economic
boom.
There is generally a weak relationship between equity markets (e.g., New York Stock
Exchange) and economic indicators.
Firms can eliminate political instability and adverse government actions risks by:
competing in a range of geographic markets, developing stakeholder coalitions,
cultivating relationships with key influences, and including key public/private
stakeholders in their boards.
Increasing international exchange in goods and services can run into the difficulty of
having one offer that meets the needs of customers at differing income levels.
The experience curve concept suggests that production costs tend to decrease as
production increases.
Only about fifty percent of corporate venturing efforts reach profitability within six
years of their launch.
Mass customization enables manufacturers to be more responsive to customer demands
for high quality products.
Social capital is based on the network of relationships within a firm, not in the skills
and abilities of an individual employee.
In a barrier-free organization, differences in skills, authority, and talent disappear.
Many firms facing a turnaround situation try to reduce their costs by outsourcing the
production of many inputs.
An advantage of the barrier-free form of organizing is that internal cooperation and
shared objectives are not required for it to work.
According to the Business Roundtable, representing the largest U.S. corporations, the
most important quality of a good board of directors is that they do not get involved in
critiquing company strategies.
In some industries, high switching costs can act as an important barrier to entry.
An effective way to instill ethical behavior in an organization is to distribute rewards
strictly on the basis of outcomes.