Golden parachutes protect managers from the negative consequences of over diversifying a firm

Southwest Airlines’ tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated

Firms that sold off related units in which resource sharing was a possible source of economies of scope have been found to produce lower returns than those that sold off businesses unrelated to the firm’s core business

In order to meet and exceed customers’ expectations over time, firms must:

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm’s operations in order to consistently provide the same positive experience for customers.

In large diversified firms, corporate headquarters distributes capital to its businesses to create value for the overall corporation

A firm uses a corporate-level diversification strategy for a variety of reasons, all of which have to do with ways to create value

Companies in emerging markets frequently use the unrelated diversification strategy because of the absence of a “soft infrastructure” in those markets

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets