A) are preferable to short-term contracts when there is a minimal need for cooperation. B) are preferable to vertical integration when it is not feasible to exchange hostages. C) generally result in lower prices than competitive bidding. D) achieve the same outcomes as vertical integration, but they incur higher bureaucratic costs. E) are a low-cost alternative to vertical integration when it is possible to build cooperative relationships with suppliers. A) are preferable to short-term contracts when there is a minimal need for cooperation. B) are preferable to vertical integration when it is not feasible to exchange hostages. C) generally result in lower prices than competitive bidding. D) achieve the same outcomes as vertical integration, but they incur higher bureaucratic costs. E) are a low-cost alternative to vertical integration when it is possible to build cooperative relationships with suppliers.

Exam 9: Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

A company must choose an appropriate corporate-level strategy after selecting the pricing option (lowest, average, or premium price) that will allow it to maximize profitability.

(True/False)

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Question 21

How can strategic outsourcing strengthen a company's business model and increase its profitability?

(Essay)

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Question 22

Adam's boss tells him that their company is pursuing the strategy of horizontal integration. Which of the following is true of this scenario?

(Multiple Choice)

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Question 23

An example of increased product differentiation, acquiring or merging with a competitor helps to eliminate excess capacity in an industry.

(True/False)

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Question 24

An advantage of horizontal integration is that it can lower a company's cost structure by creating increasing economies of scale.

(True/False)

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Question 25

Which of the following is NOT a difference between in-house and independent suppliers?

(Multiple Choice)

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Question 26

Which of the following describes a benefit of a long-term cooperative relationship over a short-term alliance?

(Multiple Choice)

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Question 27

Sharing the expenses of investment in production assets or inventory, or making long-term supply or purchase guarantees are examples of vertical integration.

(True/False)

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Question 28

A merger occurs when one company uses capital resources such as stock, debt, or cash to purchase another company.

(True/False)

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Question 29

Product bundling involves offering customers the opportunity to purchase a range of products at a single, combined price.

(True/False)

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Question 30

Which of the following is NOT a benefit of vertical integration?

(Multiple Choice)

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Question 31

Which of the following risks of outsourcing can be reduced by ensuring that there is appropriate communication between the outsourcing specialist and the company?

(Multiple Choice)

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Question 32

Which of the following benefits of vertical integration provides advantages to those businesses that want to use just-in-time (JIT) inventory systems correctly?

(Multiple Choice)

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Question 33

All of the following are benefits of horizontal integration EXCEPT:

(Multiple Choice)

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Question 34

Product bundling and cross-selling are ways to establish which of the following?

(Multiple Choice)

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Question 35

Vertical integration can raise costs if, over time, a company's leaders continue to purchase inputs from company-owned suppliers even when independent suppliers can supply the same inputs at lower cost.

(True/False)

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Question 36

When technology in an industry is changing rapidly, a company pursuing a strategy of vertical integration may find itself:

(Multiple Choice)

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Question 37

The difference between full integration and taper integration is that taper integration includes outside suppliers and independent distributors during the in-house manufacturing function.

(True/False)

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Question 38

Long-term contracts:

(Multiple Choice)

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Question 39

Strategic alliances are:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 71

A company must choose an appropriate corporate-level strategy after selecting the pricing option (lowest, average, or premium price) that will allow it to maximize profitability.

How can strategic outsourcing strengthen a company's business model and increase its profitability?

Adam's boss tells him that their company is pursuing the strategy of horizontal integration. Which of the following is true of this scenario?

An example of increased product differentiation, acquiring or merging with a competitor helps to eliminate excess capacity in an industry.

An advantage of horizontal integration is that it can lower a company's cost structure by creating increasing economies of scale.

Which of the following is NOT a difference between in-house and independent suppliers?

Which of the following describes a benefit of a long-term cooperative relationship over a short-term alliance?

Sharing the expenses of investment in production assets or inventory, or making long-term supply or purchase guarantees are examples of vertical integration.

A merger occurs when one company uses capital resources such as stock, debt, or cash to purchase another company.

Product bundling involves offering customers the opportunity to purchase a range of products at a single, combined price.

Which of the following is NOT a benefit of vertical integration?

Which of the following risks of outsourcing can be reduced by ensuring that there is appropriate communication between the outsourcing specialist and the company?

Which of the following benefits of vertical integration provides advantages to those businesses that want to use just-in-time (JIT) inventory systems correctly?

All of the following are benefits of horizontal integration EXCEPT:

Product bundling and cross-selling are ways to establish which of the following?

Vertical integration can raise costs if, over time, a company's leaders continue to purchase inputs from company-owned suppliers even when independent suppliers can supply the same inputs at lower cost.

When technology in an industry is changing rapidly, a company pursuing a strategy of vertical integration may find itself:

The difference between full integration and taper integration is that taper integration includes outside suppliers and independent distributors during the in-house manufacturing function.

Long-term contracts:

Strategic alliances are:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

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