11.When scanning the environment for strategic threats and opportunities, managers
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?”