A firm’s mission tends to be enduring while its vision can change in light of changing environmental conditions

Power is the most critical criterion in prioritizing stakeholders

In contrast to shareholders, a firm’s customers prefer that investors receive a minimum return on their investments

Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders

If a firm is dependent on a specific stakeholder group, that group has less influence on the firm’s strategic decision making

Stakeholders are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission

An effective vision statement must specify the industry in which a company will operate

Research shows that a greater percentage of a firm’s profitability is explained by the I/O model rather than the resource-based model

RelTech is a firm in the electronics industry. It could protect its proprietary technology through patents. However, it likely will not apply for patents to keep competitors from gaining access to the technological knowledge included in the patent application

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy