Vertical alliances enable potential competitors to gain a presence in multiple segments
of an industry.
Moving “upstream” in an industry value chain will draw firms closer to the source of
needed raw materials.
The resource-based inputs into the strategy process are opportunities and threats.
International expansion is a form of diversification because the firm has chosen to
operate in a different market.
Because they are general and ambiguous, mission and vision statements serve little
strategic purpose.
Enforcing codes of ethical conduct for suppliers can increase costs.
When a firm creates a climate that is supportive of entrepreneurship, the evolving
characteristics of the new venture usually results in a unit that’s complementary to the
core businesses.
When new technology is developed by new entrants, incumbent firms face the very real
possibility that they will be marginalized or eliminated.
Michael Porter’s model is based on the principles of industrial organization economics.
The terms vision and mission may be used interchangeably.
As part of the absorption strategy, an incumbent may try to leverage a buyout by taking
control of industry distribution channels.
Challenges to sustained competitive advantage include anything that threatens VRINE
resources and capabilities.
All firms should think about the international dimensions of their business even if they
have no international operations.
Through a merger or acquisition, firms may be able to create a bundle of resources that
is unavailable to competitors.
Rewards serve as a form of control.
Most publicly traded firms are single-business operations.
The purpose of the containment strategy is to minimize the risks entailed by being a
first mover.
VRINE analysis allows managers to test the importance of resources and capabilities.
The dynamic perspective indicates that the current market position of a firm is not an
accurate predictor of its future performance.
Briefly explain the five areas in which organizations can increase the probability of
alliance success.
Name some of the possible nonequity entry modes.
Explain the four key elements necessary for establishing and maintaining
interorganizational trust.
Briefly explain the four directions in which management must communicate the
strategy as part of strategic leadership.
What is the purpose of the VRINE model?
What is multimarket competition?
Explain the four underlying phases of competitive interaction.
Discuss the concept of coevolution.