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

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Horizontal integration can lead to low cost advantages but rarely to differentiation advantages.

(True/False)

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Question 61

Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.

(True/False)

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Question 62

Vertical integration can strengthen a company's differentiation advantage.

(True/False)

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Question 63

When a bank offers horne mortgages and credit cards to its checking account customers, it is using horizontal integration strategy.

(True/False)

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Question 64

The final part of the strategy formulation process is:

(Multiple Choice)

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Question 65

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

(Essay)

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Question 66

Transfer pricing refers 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 67

Product bundling occurs when a finn offers a range of products that are sold together at a single price.

(True/False)

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Question 68

In 1999, two pharmaceutical companies that shared an equal market share decided to pool their operations to create a new firm that was known by a different name.This is an example of a(n):

(Multiple Choice)

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Question 69

When a company outsources its noncore activities to specialists, it looses its capabilities to differentiate its fmal products.

(True/False)

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Question 70

Showing 61 - 70 of 70

Horizontal integration can lead to low cost advantages but rarely to differentiation advantages.

Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.

Vertical integration can strengthen a company's differentiation advantage.

When a bank offers horne mortgages and credit cards to its checking account customers, it is using horizontal integration strategy.

The final part of the strategy formulation process is:

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

Transfer pricing refers 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.

Product bundling occurs when a finn offers a range of products that are sold together at a single price.

In 1999, two pharmaceutical companies that shared an equal market share decided to pool their operations to create a new firm that was known by a different name.This is an example of a(n):

When a company outsources its noncore activities to specialists, it looses its capabilities to differentiate its fmal products.

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

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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