Decisions about which and how many people to employ hinge on the desire either to
improve efficiency or generate new revenues.
If a target company in an acquisition has operating loss carry-forwards that cannot be
fully utilized, the acquiring company can use them to reduce the tax bill of the
combined firm.
Competition is based on the principle that firms must compete and cooperate
simultaneously.
Managers can learn which strategies are rewarded most profitably by studying the
industry.
During the road show, there are restrictions on the people to whom managers can talk
and on what they can talk about.
Comarketing two products may provide cost savings.
Firms that pursue radical innovation through autonomous units bound to the
organizational hierarchy through senior management have high success rates for
launching new products.
Mergers and acquisitions are recognized as strategies in and of themselves.
Small businesses often bring giant companies the ideas they need to expand.
During the emergency stage, unprofitable divisions are often divested.
Pursuing an alliance is an important strategic consideration for growth.
Sometime firms entering new geographic markets discover that they must adapt certain
components of their strategies to accommodate local environments.
Staging refers to the timing and pace of strategic moves that are influenced by how a
firm uses available resources such as cash, human capital, and knowledge.
The success with which diversified firms are managed in harmony with key
organizational features has a significant effect on the level of value that can be created
through their portfolios.
CEO compensation is dependent on the compensation of other managers and salaried
workers.
In reality, the failure rate of alliances is less than 20 percent.
Penalties should be applied to performance that’s unrelated to an organization’s strategic
objectives.
Strategic purpose is defined as a simplified model of the organization and its future,
including anticipated changes in environment.
A substitute is any product that satisfies a common interest.
Corporate-level strategy must maintain strategic coherence across business units to
create value for shareholders.
According to Porter, what are the two ways that a firm can gain a significant advantage
over rival competitors?
Under what conditions are corporate new ventures most likely to succeed?
Why can’t United and Delta Airlines lower their costs to match those of Southwest?
What are the three basic leadership roles?
What are some of the positive outcomes associated with strong shared values?
What are some of the limits of diversification benefits?
Explain the three dimensions of arena expansion including vertical, horizontal, and
geographic.
What is supplier power and why is it important?
What are the four stages of the industry life cycle?
Define geographic roll-up.