1. How can a strong, positive culture enhance a firm's competitive advantage? How can a weak, negative culture erode competitive advantages? Explain and provide examples.

2. The problems of many firms may be attributed to a traditional control system that failed to continuously monitor the environment and make necessary changes in their strategy and objectives. What companies are you familiar with that responded appropriately (or inappropriately) to environmental change?

3. Strong cultures can have powerful effects on employee behavior. How does this create inadvertent control mechanisms? That is, are strong cultures an ethical way to control behavior?

4. Rules and regulations can help reduce unethical behavior in organizations. To be effective, however, what other systems, mechanisms, and processes are necessary?