In a truly global industry, competitive strategies are integrated in different international
markets.
A firm that is characterized by multimarket competition encounters the same
competitors in many different markets.
Both supplier and buyer can benefit from gains in efficiency and savings in the
bureaucratic costs entailed by vertical integration.
In stable environments, any distraction of a firm’s resources or managerial time can
have serious consequences.
Cross-border businesses add a level of simplicity to both strategy formulation and
execution.
Internal causes of organizational failure reflect trends and events that attack the
business core.
Simply adding more board members is an excellent way to improve CEO and board
member interaction.
If a firm wants to sustain long-term competitiveness in a dynamic context, it must be
prepared to choose between incremental changes and radical innovations.
When economic level declines, the number of business failures will decline also.
By creating a sustainable cost gap over rivals, firms earn above industry-average
profits.
Alliances are often chosen because of government regulations.
With a roll-up, the acquiring company is trying to maintain the nature of industry
competition.
As industries mature, there are fewer competitors and greater pressure for cost savings.
If a firm wants to exploit opportunities while withstanding competitive pressures, its
strategy must be built on its bureaucracy and structure.
The concentration ratio represents the combined revenues of the largest industry
participants as a ratio of total industry sales.
During the growth stage of the industry life cycle, acquisitions tend to involve the
purchase of start-up firms by well-established firms.
As part of their interpersonal role, top executives perform various ceremonial tasks,
such as breaking ground at new facilities and hosting retirement dinners.
Once some level of interorganizational trust is established, stock and flow reflect the
partners’ reciprocal experiences.
What is the purpose of the vision statement?
How is the concept of strategy defined?
Explain the concepts of inimitability and nonsubstitutability.
Who are possible alliance partners? Explain.
What is strategic change?
What are the four underlying phases of competitive interaction?
What are the four key words of the four-actions framework?
What is the difference between vertical and horizontal alliances?