11.When scanning the environment for strategic threats and opportunities, managers tend to categorize the different companies in their industries into core firms, secondary firms, and transient firms.
12.The goal of a shadow-strategy task force is to actively seek out its own company’s weaknesses. Once those weaknesses are found, the group is to think like a competitor and decide how those weaknesses could be exploited to achieve a competitive advantage.
13.When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.
14.Corporate-level strategy is the overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?”
15.Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
16.In contrast to a single, undiversified business, related diversification reduces risk,
17.If retrenchment works, it is typically followed by a stability strategy.
18.Companies often choose a stability strategy when their external environment doesn’t change much, or after they have struggled with periods of explosive growth.
19.Companies can grow either externally or internally.
20.Industry-level strategy is a corporate strategy that addresses the question “How should we compete against a particular firm in our industry?”