Exam 7: Section 5: Strategy: How Do Businesses Generate a Successful Strategy

Microsoft Windows is an example of a de jure standard.

Sociopolitical legitimacy refers to the endorsement of an industry, activity, or organizational form by key stakeholders and institutions such as the state and government officials, opinion leaders, or the general public.

Laying off workers is the only way to curtail an industry while in the decline phase of the industry lifecycle model.

Extraordinary creativity and innovation is typical in the growth phase of the industry lifecycle model.

Customers will often pay a premium for a product in the maturity phase of the lifecycle model.

Despite fierce competition and many exits, the high growth and reduction in uncertainty attracts many new entrants to the industry.

Changes in demographics can be associated with the decline phase of an industry.

Convincing stakeholders of the potential viability of a new product or concept occurs in the introduction phase.

The banking industry has introduced mobile banking and you can now take a photo of a cheque and email it to the bank. This industry is an example of the growth phase of the industry lifecycle model.

Once an industry enters the decline phase, its profits will continue to spiral downward.