Different industries are characterized by essentially the same competitive conditions

• True

• False

Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly

• True

• False

Learning effects are cost savings that come from learning by doing

• True

• False

The Chief Executive Officer (CEO) is the principal general manager of the organization

• True

• False

Internal stakeholders are customers, suppliers, creditors, governments, unions, local communities, and the general public

• True

• False

Michael Porter has argued that low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage in an industry

• True

• False

Business-level strategy is a strategy to use competitor resources and distinctive competencies to gain a competitive advantage

• True

• False

The principle concern of corporate-level strategy is to identify the industry or industries a company should participate in to maximize its long-run profitability

• True

• False

Organizational design is the process through which managers select the combination of organizational structure and control systems that they believe will enable the company to create and sustain a competitive advantage

• True

• False

A diversified company is one that operates in only one single industry to “stick to its knitting”.

• True

• False