CHAPTER 1

I . TRUE OR FALSE

TRUE The world of business in the new century is full of uncertainties.

FALSE Companies should rely on their present success as they are getting their above
never return.

TRUE An effective mission statement develops a positive effect on corporate

performance.

TRUE The rapid hyper-competitive environment is the result of rapid changes in

technology.

TRUE The Philippines could be the transshipment in the flow of products in the Asian
region.

FALSE A small entrepreneur has no place in the world's competition in a new business
It has system.

TRUE Strategic competitiveness is the adaptation of flexibility in all areas of operation.

FALSE The more products the firm produces the greater is the cost of production per
lesser unit.

FALSE Suppliers of production inputs are no partners in the development of better

They are products.
partners

TRUE Success in business operation is seeing the future with an eye that could
penetrate miles ahead.
II. IDENTIFICATION

INDUSTRY BASED It refers to the analysis of the prevailing industry where the firm
MODEL has its competitive advantage with another firm in the
environment.

RESOURCE BASED It refers to the analysis of the resources available that are
MODEL present in the internal environment that could be used as a
competitive advantage.

CORPORATE It hinges on customer satisfaction and is based on a well.

PROFITABILITY developed a marketing strategy.

STRATEGIC MISSION It flows from strategic mission and intent that define the firm's
direction in the pursuits of its operation and corporate expansion.

INCREASED RATE OF It is the development of the fast changes in the production of

TECHNOLOGICAL products that affect competition in the new world of business.
CHANGE

ADVANCEMENT IN It refers to the presence of new computers that makes

INFORMATION communication within the tip of the fingers in business
LINKAGES transactions.

CONTINUOUS It refers to innovativeness by injecting new ideas and knowledge

LEARNING/ in product development and new marketing strategies.
KNOWLEDGE BASED
INTENSITY

THE ECONOMIES OF It refers to the production of more products that reduces the cost
SCALE of production per unit.

VERTICAL EXPANSION It refers to the strategy of developing a new business enterprise

by integrating its operation with related industry.

FORWARD EXPANSION It refers to the corporate strategy where the major firm buys out
small competitors and integrates them with their major operating
units.