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Question
Vertical integration is a corporate-level strategy that involves a company entering new industries to increase its long-run profitability.Answer
This answer is hidden. It contains 4 characters.
Related questions
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A firm can use __________ strategy, including aggressive pricing and promotion, to increase sales volume which leads to cost reductions from scale and learning effects.
a) R&D
b) a differentiation
c) TQM
d) marketing
e) a cost leadership
Q:
The reasons that explain why so many new products fail to generate an economic return include all of the following except
a) the demand for innovations is inherently uncertain.
b) the technology is poorly commercialized.
c) many fail because of poor positioning strategy.
d) development costs are not kept in check.
e) the products are slow to get to the market.
Q:
When a firm produces products that customers perceive as having higher utility than those of its rivals, this firm's source of competitive advantage is
a) design.
b) low innovation.
c) superior quality.
d) efficiency.
e) customer responsiveness.
Q:
The four generic building blocks of competitive advantage are
a) low cost, quality, efficiency, and customer responsiveness.
b) differentiation, quality, innovation, and customer responsiveness.
c) quality, efficiency, differentiation, and customer responsiveness.
d) customer responsiveness, quality, efficiency, and human resources.
e) quality, customer responsiveness, innovation, and efficiency.
Q:
Defection rate refers to the percentage of a company's employees who defect every year to competitors.
Q:
Information systems refer to the largely electronic systems for managing inventory, tracking sales, pricing products, selling products, dealing with customer service inquiries, etc.
Q:
Additional sources of enhanced customer responsiveness include superior design, superior service, and superior after sales service and support.
Q:
The main goal for a company's human resource function is to find ways to lower wage and benefits costs.
Q:
A small reduction in materials and transportation costs can have a substantial impact on profitability.
Q:
In the value chain, research and development (R&D) is concerned with the design of products and production processes.
Q:
At Adam's bicycle shop, the primary value chain activity of production occurs each time a customer's bicycle is repaired.
Q:
In the value chain, support activities are those involved in the physical creation of the product, its marketing and delivery to buyers, and its after-sales service.
Q:
List and briefly discuss each of the elements of Michael Porter's Five Forces Model.
Q:
Beverage makers are finding that water sales are increasing due to consumers' preferences for healthy drinks. Which part of the macroenvironment does this represent?
a) Economic forces
b) Social forces
c) Embryonic forces
d) Political forces
e) Demographic forces
Q:
The threat from new entrants is greatest in the _________ stage of the industry life cycle.
a) embryonic
b) growth
c) shakeout
d) maturity
e) decline
Q:
In growth industries,
a) replacement demand is increasing rapidly.
b) technological expertise is the most important entry barrier.
c) rivalry is high.
d) distribution channels are poorly developed.
e) buyers are familiar with the industry's product.
Q:
Which of the following is not a determinant of the extent of rivalry among established companies?
a) The number and size distribution of companies in the industry
b) The power of buyers
c) The cost structure of firms in an industry
d) Exit barriers
e) Demand conditions
Q:
Within Porter's framework, a _________ competitive force can be regarded as a(n) __________.
a) strong; threat
b) weak; threat
c) strong; opportunity
d) weak; competitive advantage
e) strong; competitive advantage
Q:
The stability of a mature industry is threatened by price wars.
Q:
Within an industry, each strategic group may face a different set of opportunities and threats.
Q:
Substitute products are the products of different businesses or industries that can satisfy similar customer needs.
Q:
The bargaining power of suppliers is the ability to raise the price of inputs or to raise the costs of the industry in other ways.
Q:
Exit barriers are the economic, strategic, and emotional factors that prevent companies from leaving an industry.
Q:
Many fragmented industries are characterized by low entry barriers and commodity-type products that are hard to differentiate.
Q:
Absolute cost advantage is enjoyed by incumbents in an industry and that new entrants cannot expect to match.
Q:
Michael Porter argues that the stronger each of the five forces, the more limited the ability of established companies to raise prices and earn greater profits.
Q:
Explain the principles of agency theory, including the issues it addresses. What are some effective ways to deal with agency problems, as implied or stated by agency theory?
Q:
A takeover constraint
a) uses the threat of a takeover to cause the CEO to fear the loss of his or her job.
b) prevents a company from being taken over.
c) limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest.
d) is reduced by corporate raiders.
e) is greatest when a company's stock price is significantly higher than book value.
Q:
In the business arena the laws that govern product liability are called __________________.
a) contract laws
b) intellectual laws
c) tort laws.
d) securities laws
e) none of the above
Q:
When are the interests of stockholders and senior managers likely to be most closely aligned?
a) When the board of directors is dominated by insiders
b) When managers receive most of their compensation in the form of a regular salary
c) When managers receive most of their compensation in the form of stock options
d) When stockholders are weak
e) When corporate raiders are unable to mount a takeover bid