A board composed primarily of outside directors will have better insights as to the firm’s intended strategic initiatives, the reasons for the initiatives, and the outcomes expected from them than will inside directors

Organizational controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable

The firm’s envisioned future encourages employees to stretch beyond their expectations of accomplishment and requires significant change and progress to be realized

Alliances of organizations in the same stage on the value chain are known as vertical alliances

Organizational structures must be both stable and flexible

In addition to determining new strategic initiatives, top-level managers also develop the appropriate organizational structure and reward systems of a firm

The CEO is the individual with primary responsibility for effective strategic leadership within an organization

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders

Research has consistently shown that there is one best way to structure all organizations, regardless of competitive strategy

A CEO may gain power by holding the titles of both CEO and chairman of the board