Chem 120- Exam #2
Study online at https://quizlet.com/_8y88ny
1. Describe forward and backward integra- Forward integration is movement in a down-
tion in terms of upstream and down- stream direction
stream operations. Backward integration is movement in an up-
stream direction.
2. Describe some typical problems with A lower profit margin product often makes it
backward integration. very difficult to recoup the investment put into
the backward integration venture.
3. What would be the terms involved with A chain of jewelry stores being acquired by a
the acquisition of a chain of jewelry chemical company would be considered a di-
stores by a chemical company and the versification. The marketing of plastic toys by a
marketing of plastic toys by a plastics plastics manufacturer would be a forward inte-
manufacturer? gration.
4. A manufacturer of aluminum foil pur- The purchase of an aluminum recycling plant
chases an aluminum recycling plant. would be backward integration. Production of
They also begin to make aluminum pow- aluminum powder for sale would be a horizon-
der for sale to the trade. What terms are tal integration.
applicable to these operations?
5. Give some important reasons for com- 1. Control of raw materials is the biggest reason
panies to pursue various types of inte- for backward integrations
gration. 2. Having a higher value added product to sell
is the largest reason to pursue a forward inte-
gration
3. Rounding out a product line is the major
reason for horizontal integrations.
6. How do divestitures mirror expansions In times of expansion, companies will add work-
in times of industry contraction? ers and expand product lines.
During difficult times, companies tend to divest
and cut their workforce.
1/8
, Chem 120- Exam #2
Study online at https://quizlet.com/_8y88ny
7. How would you explain the favorable Japan has no natural resources amenable to use
balance of trade with countries like in the chemical industry, while the United States
Japan? has ample resources
8. What market segment offers the best The segment of the industry with a narrow mar-
ROI? ket base offers the best ROI.
9. What is ROI? Return on investment or a measure of how
much is made for every dollar invested in a
company.
10. Describe three keys to Air Products and 1. Go into markets where they can the industry
chemicals "Game Plan". How do they leader.
avoid the criticism of "Yankee Imperial- 2. Seek alliances with other companies that have
ism"? technologies that can benefit Air Products to
help defray R&D costs.
3. Push export sales.
They avoid the criticism of Yankee Imperialism
by their philosophy of Think Globally, Act Locally.
11. Which country currently has the top vol- The largest companies are currently German
ume chemical producers in the world? companies.
12. What is the difference between an INDA An Investigational New Drug Application (INDA)
and an NDA? is submitted prior to beginning testing on hu-
mans and will include all information gathered
about the drug candidate on in vitro and animal
testing.
The New Drug Application (NDA) is submitted
at the end of clinical trials and would include
information about the effects of the drug on
humans.
2/8
Study online at https://quizlet.com/_8y88ny
1. Describe forward and backward integra- Forward integration is movement in a down-
tion in terms of upstream and down- stream direction
stream operations. Backward integration is movement in an up-
stream direction.
2. Describe some typical problems with A lower profit margin product often makes it
backward integration. very difficult to recoup the investment put into
the backward integration venture.
3. What would be the terms involved with A chain of jewelry stores being acquired by a
the acquisition of a chain of jewelry chemical company would be considered a di-
stores by a chemical company and the versification. The marketing of plastic toys by a
marketing of plastic toys by a plastics plastics manufacturer would be a forward inte-
manufacturer? gration.
4. A manufacturer of aluminum foil pur- The purchase of an aluminum recycling plant
chases an aluminum recycling plant. would be backward integration. Production of
They also begin to make aluminum pow- aluminum powder for sale would be a horizon-
der for sale to the trade. What terms are tal integration.
applicable to these operations?
5. Give some important reasons for com- 1. Control of raw materials is the biggest reason
panies to pursue various types of inte- for backward integrations
gration. 2. Having a higher value added product to sell
is the largest reason to pursue a forward inte-
gration
3. Rounding out a product line is the major
reason for horizontal integrations.
6. How do divestitures mirror expansions In times of expansion, companies will add work-
in times of industry contraction? ers and expand product lines.
During difficult times, companies tend to divest
and cut their workforce.
1/8
, Chem 120- Exam #2
Study online at https://quizlet.com/_8y88ny
7. How would you explain the favorable Japan has no natural resources amenable to use
balance of trade with countries like in the chemical industry, while the United States
Japan? has ample resources
8. What market segment offers the best The segment of the industry with a narrow mar-
ROI? ket base offers the best ROI.
9. What is ROI? Return on investment or a measure of how
much is made for every dollar invested in a
company.
10. Describe three keys to Air Products and 1. Go into markets where they can the industry
chemicals "Game Plan". How do they leader.
avoid the criticism of "Yankee Imperial- 2. Seek alliances with other companies that have
ism"? technologies that can benefit Air Products to
help defray R&D costs.
3. Push export sales.
They avoid the criticism of Yankee Imperialism
by their philosophy of Think Globally, Act Locally.
11. Which country currently has the top vol- The largest companies are currently German
ume chemical producers in the world? companies.
12. What is the difference between an INDA An Investigational New Drug Application (INDA)
and an NDA? is submitted prior to beginning testing on hu-
mans and will include all information gathered
about the drug candidate on in vitro and animal
testing.
The New Drug Application (NDA) is submitted
at the end of clinical trials and would include
information about the effects of the drug on
humans.
2/8
