Question 1

A supplier that is contracted to create and provide a customized input to a local firm is called a(n)_____.

Accepted Answer

A)  acquirer 
B)  coordinator 
C)  subcontractor 
D)  advocate 
A)  acquirer 
B)  coordinator 
C)  subcontractor 
D)  advocate

Question 2

Cygnus Bank is a banking and financial services company.It offered a large sum of money and a chance to receive employment to the programmers who could create a software that would help enhance employee productivity.Which of the following types of crowdsourcing did Cygnus Bank use?

Accepted Answer

A)  Crowdvoting 
B)  Crowdinnovation 
C)  Crowdtasking 
D)  Crowdcreating 
A)  Crowdvoting 
B)  Crowdinnovation 
C)  Crowdtasking 
D)  Crowdcreating

Question 3

BHG Corp.is a glass manufacturing company that specializes in float glasses.The company manufactures float glass through various stages of melting and refining,coating,and annealing.It is then inspected and cut according to customer requirements.This manufacturing process performed by BHG Corp.is termed as _____.

Accepted Answer

A)  virtuous circle 
B)  value chain 
C)  task specialization 
D)  supply chain 
A)  virtuous circle 
B)  value chain 
C)  task specialization 
D)  supply chain

Question 4

Which of the following examples correctly depicts a company that uses a transaction-specific asset?

Accepted Answer

A)  Indigo Inc., a company that manufactures faucets 
B)  Eclipse Corp., a company that manufactures pens and sells them through distributors 
C)  BLC Corp., a company that uses heavily customized software to manufacture airplane seats 
D)  Vertigo LLC, a company that sources raw material from suppliers to manufacture dinnerware 
A)  Indigo Inc., a company that manufactures faucets 
B)  Eclipse Corp., a company that manufactures pens and sells them through distributors 
C)  BLC Corp., a company that uses heavily customized software to manufacture airplane seats 
D)  Vertigo LLC, a company that sources raw material from suppliers to manufacture dinnerware

Question 5

When one firm tries to take advantage of another firm that has made a transaction-specific investment,by causing a brief delay in business because a product has no other use is known as a(n)_____.

Accepted Answer

The answer of When one firm tries to take advantage...

Question 6

Explain the three Cs of vertical integration.

Accepted Answer

The three Cs of vertical integration are

Question 7

Hydrus Corp.contracted most of its business processes to various other companies.This helped the company generate immediate profits,but Hydrus was losing competitive advantage over its rivals in the long run due to its lack of innovation.Which of the following is a danger of outsourcing that Hydrus Corp.experienced?

Accepted Answer

A)  Lack of control 
B)  Loss of capabilities 
C)  Lack of focus 
D)  Loss of technology 
A)  Lack of control 
B)  Loss of capabilities 
C)  Lack of focus 
D)  Loss of technology

Question 8

Which of the following companies is most likely to experience the benefits of outsourcing?

Accepted Answer

A)  Pulsar Corp., a shoe manufacturer, which has invested huge an amount of capital in order to afford its suppliers 
B)  Black Inc., a consumer electronics company, which has been importing its supplies from other companies and focuses only on the critical aspects of its work 
C)  Carbon LLC, an automobile manufacturer, which has the capability to produce more of its raw materials in house 
D)  Beta Corp., a computer manufacturer, which has been trying hard to adapt new technologies in order to gain competitive edge in the industry 
A)  Pulsar Corp., a shoe manufacturer, which has invested huge an amount of capital in order to afford its suppliers 
B)  Black Inc., a consumer electronics company, which has been importing its supplies from other companies and focuses only on the critical aspects of its work 
C)  Carbon LLC, an automobile manufacturer, which has the capability to produce more of its raw materials in house 
D)  Beta Corp., a computer manufacturer, which has been trying hard to adapt new technologies in order to gain competitive edge in the industry

Question 9

Browns Inc.,a well-established suitcase brand,started manufacturing its own suitcases.It added new features in its suitcases such as water-resistance and extra storage space.The initiation by Browns Inc.to manufacture its own suitcases best illustrates _____.

Accepted Answer

A)  linked diversification 
B)  backward integration 
C)  forward integration 
D)  assisted development 
A)  linked diversification 
B)  backward integration 
C)  forward integration 
D)  assisted development

Question 10

Sport Soles Inc.,a sports footwear manufacturing company,makes athletic shoes with rubber soles.In order to maximize its value and profit,Sport Soles sets up its operations right next to rubber tree fields.This way,the company gets easy access to its main raw material.In the context of vertical integration,this scenario illustrates that Sport Soles Inc.is exercising _____.

Accepted Answer

A)  control 
B)  coordination 
C)  extensive focus 
D)  modular interdependence 
A)  control 
B)  coordination 
C)  extensive focus 
D)  modular interdependence

A supplier that is contracted to create and provide a customized input to a local firm is called a(n)_____.

Cygnus Bank is a banking and financial services company.It offered a large sum of money and a chance to receive employment to the programmers who could create a software that would help enhance employee productivity.Which of the following types of crowdsourcing did Cygnus Bank use?

Which of the following examples correctly depicts a company that uses a transaction-specific asset?

When one firm tries to take advantage of another firm that has made a transaction-specific investment,by causing a brief delay in business because a product has no other use is known as a(n)_____.

Explain the three Cs of vertical integration.

Which of the following companies is most likely to experience the benefits of outsourcing?

Browns Inc.,a well-established suitcase brand,started manufacturing its own suitcases.It added new features in its suitcases such as water-resistance and extra storage space.The initiation by Browns Inc.to manufacture its own suitcases best illustrates _____.

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses, and Competitive Advantage

Cost Advantage

Differentiation Advantage

Corporate Strategy

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Corporate Governance and Ethics

Strategy and Society

Filters

Exam 7: Vertical Integration and Outsourcing

A supplier that is contracted to create and provide a customized input to a local firm is called a(n)_____.

Cygnus Bank is a banking and financial services company.It offered a large sum of money and a chance to receive employment to the programmers who could create a software that would help enhance employee productivity.Which of the following types of crowdsourcing did Cygnus Bank use?

Which of the following examples correctly depicts a company that uses a transaction-specific asset?

When one firm tries to take advantage of another firm that has made a transaction-specific investment,by causing a brief delay in business because a product has no other use is known as a(n)_____.

Explain the three Cs of vertical integration.

Which of the following companies is most likely to experience the benefits of outsourcing?

Browns Inc.,a well-established suitcase brand,started manufacturing its own suitcases.It added new features in its suitcases such as water-resistance and extra storage space.The initiation by Browns Inc.to manufacture its own suitcases best illustrates _____.

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses, and Competitive Advantage

Cost Advantage

Differentiation Advantage

Corporate Strategy

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Corporate Governance and Ethics

Strategy and Society

Filters