Exam 5: Strategies in Action

Discuss each of Michael Porter's generic strategies.

Forward integration and backward integration are sometimes collectively referred to as

The purchase of 80 percent of Procter & Gamble's pet-food brands by Mars Inc., best known for its M&M chocolates and its Mars and Snickers candy bars, is an example of related diversification.

What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity?

There are four basic types of diversification: concentric, conglomerate, forward, and backward.

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

A secondary buyout occurs when a corporation's shares are bought by the company's management and other private investors using borrowed funds.

A best-value strategy must offer products or services to a wide range of customers at the best price-value available on the market.

An appropriate strategy when an organization has excess production capacity is market development.

List three guidelines for when forward integration would be a particularly good strategy to pursue.

To succeed, a differentiation strategy depends on the existence of many different niches and segments within a market, thereby allowing a focuser to pick a competitively attractive niche suited to its own resources.

Chapter 13 bankruptcy is similar to Chapter 11, but available only to large corporations.

Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals.

Research indicates that strategic management in small firms is more formal than in large firms.

According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?

List the two types of diversification strategies and state the clear distinction between them.

Which strategy generally entails large research and development expenditures?

Long-term objectives are needed at which level(s) in an organization?

Selling a division or part of an organization is called divestiture.

In order to exploit common use of a well-known brand name, most companies favor related diversification strategies.