1. Because a firm's resources and capabilities play a dominant role in achieving a sustainable competitive advantage, it has been argued that organizational leaders should design strategy to leverage those resources and capabilities. Do you agree with this, or do you believe that organizational leaders should design strategy first and then adjust the firm's resources and capabilities to make the strategy work? Explain your perspective. Q2. You can imagine that companies in the alcohol, tobacco, or firearms businesses may feel a need to diversify into less scrutinized or regulated businesses in the ongoing effort to strengthen their competitiveness and market positions. How might ethical issues related to these core businesses affect their ability to enter, or costs of entry, into new businesses? How might these issues affect their ability to exit, or the costs of exiting their traditional businesses? Or does it even matter? Q3. One way companies grow is to launch new businesses into market segments where they have not previously competed. For example, GE, starting with an incandescent lamp business, has moved to businesses covering more than 700 product markets. By all counts, GE's diversification strategies have been successful. On the other hand, consider the case of McDonald's' diversification strategy of entering the hotel business in Switzerland. In March of 2001, they opened two hotels, and as a result of poor performance, by August 2003 the decision was made to sell the hotels. Review the video clip about McDonald's Golden Arch Hotel in Zurich, Switzerland and then comment on why you think their diversification strategy failed? Q4. To act ethically in business it is only necessary to follow the law. Do you agree or disagree with this statement? Why or why not