WPC 480 Chapter 6 Exam Questions with Correct Answers

WPC 480 Chapter 6 Exam Questions with Correct Answers By purchasing La Boulange, Starbucks is implementing a ______________ in the hopes of gaining a competitive advantage. - Answer-corporate-level strategy How is Starbucks diversifying itself by purchasing La Boulange? - Answer-y increasing its product offerings to include bakery items. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items? - Answer-Starbucks is able to sell both its coffee and bakery products above its competitors' price point because it has a strong differentiation. By purchasing La Boulange and operating the bakery as Starbucks' sole supplier, Starbucks is able to control the value, quality, and costs associated with its products. These value chain efforts to increase profitability are called: - Answer-vertical integration What form of vertical integration is Starbucks using in purchasing La Boulange? - Answer-Backward vertical integration Starbucks' previous attempts to include food in its product offerings have met with mediocre results. Currently, only one-third of customers buy food products at Starbucks. How does using vertical integration increase Starbucks' financial risk by buying and operating its own bakery supplier? - Answer-Demand is unpredictable Starbucks is implementing a corporate-level strategy to diversify its product offerings by purchasing La Boulange in an effort to: - Answer-increase Starbucks' value to customers by improving its quality and overall performance in its industry. What is a value-increase reason for Starbucks to diversify its product offerings to include bakery items? - Answer-To help Starbucks develop a more competitive position. Corporate-level strategy is best described as: - Answer-actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. Firms use corporate-level strategies for several reasons, including to: - Answer-pursue development of a market. Using a corporate-level strategy over a business-level strategy is based on which of the following key issues? - Answer-What product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses A popular TV network, QTV, wishes to gain a competitive advantage by managing several businesses from its headquarters. Among its goals, QTV hopes to acquire its competitor, RTV, in the process. In this instance, QTV is using which type of strategy? - Answer-Corporate-level strategy Turtlecreek owns a high-end grocery chain, a high-end outdoor gear chain, and a sporting goods chain. Its retail businesses are unrelated; however, the firm hopes to gain an advantage over its competitors by associating its perceived luxury brand with each business. By selecting and managing these various businesses, Turtlecreek is implementing a _____ strategy. - Answer-corporate-level