Globus Final Exam Questions and Essays with
100% Correct Answers
What 3 areas make up corporate strategy? - ✔️✔️Vertical Integration
Diversification
Geographic scope
Principle-Agent Problem - ✔️✔️situation in which an agent performing activities on behalf of a
principal pursues his or her own interests
information asymmetry - ✔️✔️situation in which one party is more informed than another
because of the possession of private information
short term contracts - ✔️✔️a firm sends out requests for proposals (RFPs) to several companies,
which initiates competitive bidding for contracts to be awarded with a short duration, generally
less than one year.
examples of Long term contracts - ✔️✔️Licensing
Franchising
Licensing - ✔️✔️a form of long-term contracting in the manufacturing sector that enables firms
to commercialize intellectual property
Franchising - ✔️✔️a long-term contract in which a franchisor grants a franchisee the right to use
the franchisor's trademark and business processes to offer goods and services that carry the
franchisor's brand name
Industry value chain - ✔️✔️depiction of the transformation of raw materials into finished goods
and services along distinct vertical stages, each of which typically represents a distinct industry
in which a number of different firms are competing
, stages of the industry value chain - ✔️✔️1. raw materials
2. intermediate goods and components
3. final assembly and manufacturing
4. marketing, sales, support
product diversification strategy - ✔️✔️corporate strategy in which a firm is active in several
different product markets
geographic diversification strategy - ✔️✔️corporate strategy in which a firm is active in several
different countries
product-market diversification strategy - ✔️✔️corporate strategy in which a firm is active in
several different product markets and several different countries
Why do firms enter strategic alliances? - ✔️✔️1. Strengthen competitive position
2. Enter new markets
3. Hedge against uncertainty
4. Access critical complementary assets
5. Learn new capabilities
Governing Strategic Alliances - ✔️✔️1. non-equity alliances
2. equity alliances
3. joint ventures
alliance champion - ✔️✔️a senior, corporate-level executive responsible for high-level support
and oversight
100% Correct Answers
What 3 areas make up corporate strategy? - ✔️✔️Vertical Integration
Diversification
Geographic scope
Principle-Agent Problem - ✔️✔️situation in which an agent performing activities on behalf of a
principal pursues his or her own interests
information asymmetry - ✔️✔️situation in which one party is more informed than another
because of the possession of private information
short term contracts - ✔️✔️a firm sends out requests for proposals (RFPs) to several companies,
which initiates competitive bidding for contracts to be awarded with a short duration, generally
less than one year.
examples of Long term contracts - ✔️✔️Licensing
Franchising
Licensing - ✔️✔️a form of long-term contracting in the manufacturing sector that enables firms
to commercialize intellectual property
Franchising - ✔️✔️a long-term contract in which a franchisor grants a franchisee the right to use
the franchisor's trademark and business processes to offer goods and services that carry the
franchisor's brand name
Industry value chain - ✔️✔️depiction of the transformation of raw materials into finished goods
and services along distinct vertical stages, each of which typically represents a distinct industry
in which a number of different firms are competing
, stages of the industry value chain - ✔️✔️1. raw materials
2. intermediate goods and components
3. final assembly and manufacturing
4. marketing, sales, support
product diversification strategy - ✔️✔️corporate strategy in which a firm is active in several
different product markets
geographic diversification strategy - ✔️✔️corporate strategy in which a firm is active in several
different countries
product-market diversification strategy - ✔️✔️corporate strategy in which a firm is active in
several different product markets and several different countries
Why do firms enter strategic alliances? - ✔️✔️1. Strengthen competitive position
2. Enter new markets
3. Hedge against uncertainty
4. Access critical complementary assets
5. Learn new capabilities
Governing Strategic Alliances - ✔️✔️1. non-equity alliances
2. equity alliances
3. joint ventures
alliance champion - ✔️✔️a senior, corporate-level executive responsible for high-level support
and oversight
