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

The CEO of Twin Spires, Inc., is committed to using the expertise and resources currently in the firm to serve the needs of the natural gardening community by providing rare and native plants to individuals and nurseries around the United States. The perspective of the CEO of Twin Spires is consistent with the assumptions of the industrial organization (I/O) model

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

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

Six years ago, Colette Smith founded a successful catering company that specializes in providing a wide assortment of miniature cheesecakes for corporate and social events. Although Ms. Smith is no longer active in the actual production of the cheesecakes, she continues as president of the catering company. Ms. Smith could be considered a strategic leader of this firm

Particularly when assessing investments in new venture firms, the most effective, and often the only, way to measure the performance of the firms and determine their viability as an investment option is to examine financial metrics such as returns on assets, and sales

An effective vision stretches and challenges people and can result in increased innovation.  This is illustrated by Apple’s CEO Steve Jobs, who was known to think bigger and differently than most people

The local government with whom a firm interacts, the people who buy its products, and the contractors who supply raw materials are all part of a firm’s capital market stakeholders

To implement a firm’s strategies, the firm takes actions to enact each strategy with the intent of achieving strategic competitiveness and above-average returns