MGT 8803 EXAM 2 STUDY MATERIAL & CORE
SUBJECTS TEST SUCCESS 2026.
◍ Concentration.Answer:Focus on single market/product
◍ Vertical Integration.Answer:Acquire forward (distribution) or
backwards (supplier) on production vertical
◍ Horizontal Integration.Answer:Merger or acquisition of companies
at same stage of production; results in less competition than vertical
◍ Diversification.Answer:Increase products, markets or industries
◍ Corporate Strategy.Answer:Address which businesses the firm will
be in and how capital will be allocated among those businesses (scope
of firm, allocation of resources, Acquisitions and divestments and
overall performance of firm)
◍ Inorganic Growth.Answer:Occurs through acquisition
◍ Organic Growth.Answer:Occurs through building new capabilities
◍ Competitive Advantage.Answer:Characteristics of both the
industry and the firm
, ◍ Single Business Diversification Strategy.Answer:>95% of total
firm revenues from a single line of business
◍ Dominant Business Diversification Strategy.Answer:70-95% of
total firm revenues from a single line of business
◍ Diversification Strategy.Answer:Related or unrelated; <70% of
total firm revenues from a single line of business; has multiple
competitive strategies
◍ Grand Strategies.Answer:Growth, stability & renewal
◍ Combination Stategies.Answer:Often difficult because they are
inherently contradictory; goal is to provide unique value in an
efficient manner; ignore Porter's advice
◍ Productivity Frontier.Answer:The theoretical limit of the cost value
relationship (differentiation vs cost leadership) and captures the sum
of all existing best practices; drawn as a concave curve
◍ Differentiation Strategy.Answer:Driven by innovation and
creativity - focused on value. Can occur in a niche market or broad
market
◍ Cost Leadership.Answer:Becoming the lowest cost producer in an
industry. Cost doesn't always mean price. Risks include anything that
SUBJECTS TEST SUCCESS 2026.
◍ Concentration.Answer:Focus on single market/product
◍ Vertical Integration.Answer:Acquire forward (distribution) or
backwards (supplier) on production vertical
◍ Horizontal Integration.Answer:Merger or acquisition of companies
at same stage of production; results in less competition than vertical
◍ Diversification.Answer:Increase products, markets or industries
◍ Corporate Strategy.Answer:Address which businesses the firm will
be in and how capital will be allocated among those businesses (scope
of firm, allocation of resources, Acquisitions and divestments and
overall performance of firm)
◍ Inorganic Growth.Answer:Occurs through acquisition
◍ Organic Growth.Answer:Occurs through building new capabilities
◍ Competitive Advantage.Answer:Characteristics of both the
industry and the firm
, ◍ Single Business Diversification Strategy.Answer:>95% of total
firm revenues from a single line of business
◍ Dominant Business Diversification Strategy.Answer:70-95% of
total firm revenues from a single line of business
◍ Diversification Strategy.Answer:Related or unrelated; <70% of
total firm revenues from a single line of business; has multiple
competitive strategies
◍ Grand Strategies.Answer:Growth, stability & renewal
◍ Combination Stategies.Answer:Often difficult because they are
inherently contradictory; goal is to provide unique value in an
efficient manner; ignore Porter's advice
◍ Productivity Frontier.Answer:The theoretical limit of the cost value
relationship (differentiation vs cost leadership) and captures the sum
of all existing best practices; drawn as a concave curve
◍ Differentiation Strategy.Answer:Driven by innovation and
creativity - focused on value. Can occur in a niche market or broad
market
◍ Cost Leadership.Answer:Becoming the lowest cost producer in an
industry. Cost doesn't always mean price. Risks include anything that
