Different industries are characterized by essentially the same competitive conditions

• FALSE

• TRUE

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

6. 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

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

• . TRUE

• FALSE

8. 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

9. 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

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

• . TRUE

• FALSE