Exam 6: Corporate Strategy

Venus Inc.is a large firm that sells several healthcare products such as bathing soaps, shampoos, body creams, and baby products.Each of these products has its own customer base.Individually, each of these products has upheld unique approaches to establish and maintain competitive advantage over its own rival companies that sell similar products.Which of the following strategies does Venus Inc.use for its products?

Which of the following is an example of a horizontal diversification?

What is a greenfield entry? When should a company use it?

A company called Techno Plus LLC experienced a failed acquisition, but the managers of the company were hesitant to end the venture as they had already invested too much time, finances, and effort into it.They presumed that everything would work out with a little more money and time.This attitude of the managers of Techno Plus LLC can be termed _____.

Which of the following statements is true of a corporate strategy?

Aquarius Corp., a consumer goods company, offers a chain of products that includes food and beverages, beauty care products, apparels, and home décor.By offering these goods, Aquarius creates more value for itself than it would have if it had sold these products individually.This practice by Aquarius Corp.can be referred to as _____.

Which of the following is an ancient Greek word for excessive pride, arrogance, or overconfidence that is used to refer to the actions of managers when they diversify or make acquisitions based on their own experience or gut feelings rather than on solid data and research?

Markus United Inc., a soap manufacturing company, maintained strategic advantage over other companies by retaining profits in a unique way.The company bought a few distributors in order to improve efficiency and cut down transportation costs while distributing its products to retail stores.The company generated more profits than its competitors this way.This is an example of _____.

Brentwood Industries, a furniture company, bought a supplier factory that creates raw materials for the whole range of products Brentwood manufactures.Brentwood has made sure not to look for outside sources for providing the company's raw materials.Brentwood Industries is practicing _____.

What does the term adjacent market mean?

Mention the factors that lead to destroying value through diversification.Explain any three of them.

What are the two challenges related to acquisition premium that an acquiring firm faces when acquiring a target firm?

BestBrew Corp.and True Coffee Inc.were two leading coffee manufacturing firms.They united and created a whole new firm called True Brew Inc.that used the best customer front-end and operational back-end processes of the two firms.This union is an example of a _____.

Spring Resources LLC creates unique value by establishing a learning organization that coordinates various production tactics and assimilates different types of technologies.This knowledge is distributed to the entire organization so that its branches can adapt and perform according to their own markets.These tactics and technologies distributed throughout the organization that create value for Spring Resources LLC are termed _____.

Galaxy Corp.is a manufacturing company that aims to provide value to its customers by identifying sources of revenue, the intended customer base, products and processes, and details of financing.This method that Galaxy Corp.wants to adopt is termed _____.

Movement by a firm along its own value chain in the direction of sales, service, or warranty operations is termed _____.

How does diversification help exploit existing customer-facing resources?

Two firms recently had a bolt-on acquisition.Martha, the managing director of one of these firms, claims that an integration team is required to decide which tactical elements and operational functions of the two firms should be strategically integrated and implemented.She believes having this team will enable fair decisions to be made, thus inculcating a friendly atmosphere in the new firm.Which of the following statements strengthens Martha's claim?

The search for competitive advantage within a single industry, market, or line of business best defines the term _____.

Movement into adjacent markets by a firm along its own value chain can be best termed _____.