A) eliminates the need for a value chain. B) reduces the firm's dependence on its value chain. C) reorders the steps in a firm's value chain. D) moves some value chain activities outside the firm. E) strengthens the firm's capabilities in each value chain function. A) eliminates the need for a value chain. B) reduces the firm's dependence on its value chain. C) reorders the steps in a firm's value chain. D) moves some value chain activities outside the firm. E) strengthens the firm's capabilities in each value chain function.

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

Vertical integration can be risky when demand is unpredictable because it is hard to manage the volume or flow of products along the value-added chain.

(True/False)

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Question 41

The term bureaucratic costs refers to costs associated with the creation and maintenance of the administrative function in a company.

(True/False)

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Question 42

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 43

In a strategic alliance,one company in the agreement benefits more than the other.

(True/False)

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Question 44

_____ is the process of acquiring or merging with industry competitors to achieve the competitive advantages.

(Multiple Choice)

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Question 45

Transfer pricing refers to when a company is taken advantage of by another company it does business with after it has made an investment in expensive specialized assets to better meet the needs of the other company.

(True/False)

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Question 46

Vertical integration can be disadvantageous when:

(Multiple Choice)

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Question 47

Consider the case of a manufacturing firm that purchases subassemblies from a supplier,creates a finished product,and then sells that product to a wholesale distributor.What advantages might this firm gain from forward integration? From backward integration? What potential pitfalls of vertical integration might the firm face?

(Essay)

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Question 48

When a company decides to expand into new industries,it must:

(Multiple Choice)

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Question 49

Outsourcing:

(Multiple Choice)

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Question 50

Vertical integration is undertaken to support the competitive position of a company's core business.

(True/False)

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Question 51

Horizontal integration in an industry tends to:

(Multiple Choice)

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Question 52

Antitrust authorities:

(Multiple Choice)

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Question 53

Google bought Clever Sense,a mobile app company.This is an example of a(n):

(Multiple Choice)

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Question 54

Vertical integration is based on a company entering only those industries that:

(Multiple Choice)

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Question 55

Horizontal integration allows companies to obtain bargaining power over suppliers or buyers and increase their profitability at the expense of suppliers or buyers.

(True/False)

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Question 56

What is the relationship between a company's corporate-level strategy and its business model?

(Essay)

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Question 57

The final part of the strategy formulation process is:

(Multiple Choice)

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Question 58

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 59

All of the following are benefits of horizontal integration except:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 71

Vertical integration can be risky when demand is unpredictable because it is hard to manage the volume or flow of products along the value-added chain.

The term bureaucratic costs refers to costs associated with the creation and maintenance of the administrative function in a company.

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

In a strategic alliance,one company in the agreement benefits more than the other.

_____ is the process of acquiring or merging with industry competitors to achieve the competitive advantages.

Transfer pricing refers to when a company is taken advantage of by another company it does business with after it has made an investment in expensive specialized assets to better meet the needs of the other company.

Vertical integration can be disadvantageous when:

When a company decides to expand into new industries,it must:

Outsourcing:

Vertical integration is undertaken to support the competitive position of a company's core business.

Horizontal integration in an industry tends to:

Antitrust authorities:

Google bought Clever Sense,a mobile app company.This is an example of a(n):

Vertical integration is based on a company entering only those industries that:

Horizontal integration allows companies to obtain bargaining power over suppliers or buyers and increase their profitability at the expense of suppliers or buyers.

What is the relationship between a company's corporate-level strategy and its business model?

The final part of the strategy formulation process is:

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

All of the following are benefits of horizontal integration except:

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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