1) Trade-off decisions between effectiveness and efficiency are important in the practice of strategic management. 1) 2) All successful firms compete and outperform their rivals by developing bases for competitive advantage, which can be achieved only through cost leadership. - 3) - 3) The three primary participants in corporate governance are: (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the employees. 4) Social responsibility is the idea that organizations are only accountable to stockholders. 4) 5) Environmental scanning and competitor intelligence provide important inputs for forecasting activities. 6) Competitive Intelligence (CI) is a tool that can provide management with carly warnings about both threats and opportunities. 7) Technological innovations can create entirely new industries and alter the boundaries of industries. 7) 8) In some industries, low switching costs can act as an important barrier to entry, 9) In value-chain analysis, value is measured by the market value of the total stock outstanding of the company. 10) 10) Primary activities contribute to the physical creation of a product or service, its sale and transfer to the buyer, and its service after the sale. 11) Value-chain analysis can only be applied to manufacturing operations, 12) An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the production assembly line to reduce scrappage from quality errors. 13) Airlines such as Emirates exploit the profit pool for competitive advantage by adding fees for a variety of services such as access to airport lounges. 13)