Horizontal consistency is more important than vertical consistency in developing
annual objectives.
Strategy implementation affects top and middle managers but not lower-level
employees.
Total attractiveness scores are defined as the sum of the attractiveness scores in a given
column of the QSPM and are computed in the second step of the QSPM.
Divestiture has become a popular strategy for firms to focus on their core business and
become more diversified.
Having a code of ethics ensures ethical business behavior.
A firm can usually serve two or more market segments with the same strategy.
Stockton, a city in California, declared Chapter 9 bankruptcy in 2012 to avoid having to
close key functions such as their police and fire departments.
Assumptions have no place in planning.
Low-performing firms typically underestimate their competitor’s strengths and
overestimate their own firm’s strengths.
The most important determinants of an organization’s overall strategic position are
considered to be the two internal dimensions, financial position (FP) and competitive
position (CP), and the two external dimensions, industry position (IP) and stability
position (SP).
Policies refer to specific guidelines, methods, procedures, rules, forms, and
administrative practices established to support and encourage work toward stated goals.
It is generally not recommended for companies with less than $10 million in sales to go
public.
Proponents of the resource-based view argue that external factors are more important
than internal factors for a firm in achieving and sustaining competitive advantage.