1.There are four conditions that must be met if a firm’s resources are to be used to achieve a sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.
2.A nonsubstitutable resource is a resource that is impossible or extremely costly or difficult for other firms to duplicate.
3.A competitive advantage becomes a sustainable competitive advantage when other companies have found it very expensive to duplicate the value a firm is providing to customers.
4.The three steps of the strategy-making process are (1) assess the need for strategic change, (2) conduct a situational analysis, and (3) choose the strategic alternatives.
5.Companies face very little uncertainty in their strategic business environments.
6.Companies that succeed are constantly re-examining strategies or competitive practices that have been successful in the past in order to ascertain their probable future success.
7.Strategic myopia is a discrepancy between a company’s intended strategy and the strategy actually implemented by management.
8.According to the What Really Works, “Strategy Making for Firms, Big and Small,” the probability that the strategy-making process will increase a firm’s profits and growth is the same for both large firms and small firms.
9.An analysis of an organization’s external environment begins with an assessment of the company’s distinctive competencies and core capabilities.
10.A strategic group is a group of other companies within an industry that top managers choose for comparing, evaluating, and benchmarking their company’s strategic threats and opportunities.