BUS 475 EXAM 2 LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
9 S - (answer) Stewardship
Slack
Sharing knowledge
Similar Business models
Stepping Stone
Spread capital
Synergies
Stop Competitors
Stay Ahead of Tech
Vertical Integration - (answer) brining elements of supply chain in house that were formerly
outsourced
forward integration - (answer) towards the customer
backward integration - (answer) toward input suppliers
3C's of vertical integration - (answer) Capabilities
Coordination
Control
2F risk of vertical integration - (answer) loss of Flexibility
loss of Focus
Strategic alliance - (answer) cooperative arrangement two or more firms combine resources and
capabilities to create new value
Joint venture - (answer) more permanent creating new entity to exploit opportunity, not intended to
become major LOB for either firm
, BUS 475 EXAM 2 LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
Make - (answer) organization creates unique value inside value chain
Buy - (answer) commodity inputs, competitive input markets
Ally - (answer) unique inputs necessary for differentiation, or to enhance brand, or represent high
portions total costs, ensure cost and quality consistency
contractual/non equity - (answer) contractual SA, license, supply, distribution, ownership is shared
Equity - (answer) aligns incentives, equity holding in addition to contract
joint venture - (answer) new firm, independent entity, resources from 2 parents
vertical alliance - (answer) supplier and buyer
horizontal alliance - (answer) competitor or complements
corporate strategy - (answer) the search for value and competitive advantages through participation in
several different industries and markets
horizontal diversification - (answer) movement to an adjacent market not along current value chain
Constrained Diversification - (answer) earns less than 70% of revenue from main LOB but shares
linkages with other business operations
Linked diversification - (answer) firm that operates in related markets but fewer linkages exist between
new and existing markets
9 S - (answer) Stewardship
Slack
Sharing knowledge
Similar Business models
Stepping Stone
Spread capital
Synergies
Stop Competitors
Stay Ahead of Tech
Vertical Integration - (answer) brining elements of supply chain in house that were formerly
outsourced
forward integration - (answer) towards the customer
backward integration - (answer) toward input suppliers
3C's of vertical integration - (answer) Capabilities
Coordination
Control
2F risk of vertical integration - (answer) loss of Flexibility
loss of Focus
Strategic alliance - (answer) cooperative arrangement two or more firms combine resources and
capabilities to create new value
Joint venture - (answer) more permanent creating new entity to exploit opportunity, not intended to
become major LOB for either firm
, BUS 475 EXAM 2 LATEST 2023-2024 ACTUAL QUESTIONS AND CORRECT DETAILED ANSWERS
Make - (answer) organization creates unique value inside value chain
Buy - (answer) commodity inputs, competitive input markets
Ally - (answer) unique inputs necessary for differentiation, or to enhance brand, or represent high
portions total costs, ensure cost and quality consistency
contractual/non equity - (answer) contractual SA, license, supply, distribution, ownership is shared
Equity - (answer) aligns incentives, equity holding in addition to contract
joint venture - (answer) new firm, independent entity, resources from 2 parents
vertical alliance - (answer) supplier and buyer
horizontal alliance - (answer) competitor or complements
corporate strategy - (answer) the search for value and competitive advantages through participation in
several different industries and markets
horizontal diversification - (answer) movement to an adjacent market not along current value chain
Constrained Diversification - (answer) earns less than 70% of revenue from main LOB but shares
linkages with other business operations
Linked diversification - (answer) firm that operates in related markets but fewer linkages exist between
new and existing markets
