In order to gain information about its competitor, EBD Corp., Alpha Company obtained copies of EBD’s annual reports for the last five years. This action is unethical, and possibly illegal

Understanding how to leverage the firm’s unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization

Creating value for customers is the source of above-average returns for a firm

Methods of waste reduction and options to use renewable energy are aspects of the technological environment segment that firms should monitor

The best way to understand the relationship between resources, capabilities, and core competencies is to recognize that resources are the source of capabilities. Some capabilities lead to the development of core competencies and these, in turn, may lead to competitive advantages

Analyzing the internal environment enables a firm to determine what it CAN DO by identifying resources, capabilities, and core competencies in the internal organization

Any core competency has the potential to lose its value-creating ability

A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value

Generally, industries with stronger competitive forces have higher profit potential

Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D