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 does competitive bidding. D) achieve exactly 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 does competitive bidding. D) achieve exactly 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

When a company stays inside one industry,the problems of sustaining a successful business model and strategies over time can be difficult because of changing conditions in the environment.

(True/False)

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Question 41

Unfortunately,horizontal integration can not be accomplished by acquisitions or mergers.

(True/False)

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Question 42

Oracle Corp.,based in Reno,Nevada,has become the world's largest maker of database software largely through a strategy of acquisition.

(True/False)

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Question 43

Outsourcing occurs when a firm

(Multiple Choice)

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Question 44

Long-term contracts

(Multiple Choice)

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Question 45

A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

(True/False)

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Question 46

A company pursuing a strategy of vertical integration may expand its operations

(Multiple Choice)

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Question 47

When there is a minimal need for close long-term cooperation between a company and its suppliers,which of the following strategies is the most appropriate?

(Multiple Choice)

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Question 48

Adam's boss tells him that their company is pursuing a strategy of horizontal integration,which means that the company will

(Multiple Choice)

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Question 49

Horizontal integration in an industry tends to

(Multiple Choice)

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Question 50

The final part of the strategy formulation process is

(Multiple Choice)

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Question 51

Horizontal integration may be thought of as

(Multiple Choice)

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Question 52

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 53

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

(True/False)

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Question 54

Which of the following is a benefit that firms should expect to gain from the use of horizontal integration?

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Question 55

Many industries have experienced increased consolidation over the last decade due to an increase in

(Multiple Choice)

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Question 56

The price that one division of a company charges another division for its products,which are the inputs the other division requires to manufacture its own products refers to:

(Multiple Choice)

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Question 57

In which of the following is a firm most likely to lose direct control over value creation activities?

(Multiple Choice)

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Question 58

One outcome of horizontal integration is industry consolidation,leading to more bargaining power over buyers and suppliers.

(True/False)

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Question 59

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

(True/False)

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Question 60

Showing 41 - 60 of 72

When a company stays inside one industry,the problems of sustaining a successful business model and strategies over time can be difficult because of changing conditions in the environment.

Unfortunately,horizontal integration can not be accomplished by acquisitions or mergers.

Oracle Corp.,based in Reno,Nevada,has become the world's largest maker of database software largely through a strategy of acquisition.

Outsourcing occurs when a firm

Long-term contracts

A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

A company pursuing a strategy of vertical integration may expand its operations

When there is a minimal need for close long-term cooperation between a company and its suppliers,which of the following strategies is the most appropriate?

Adam's boss tells him that their company is pursuing a strategy of horizontal integration,which means that the company will

Horizontal integration in an industry tends to

The final part of the strategy formulation process is

Horizontal integration may be thought of as

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

Which of the following is a benefit that firms should expect to gain from the use of horizontal integration?

Many industries have experienced increased consolidation over the last decade due to an increase in

The price that one division of a company charges another division for its products,which are the inputs the other division requires to manufacture its own products refers to:

In which of the following is a firm most likely to lose direct control over value creation activities?

One outcome of horizontal integration is industry consolidation,leading to more bargaining power over buyers and suppliers.

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

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

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