BUS 4476 Final Exam #2 Vocab
Questions and All Correct Answers
2025-2026 Updated.
strategy - Answer an action a firm takes (exploiting core competencies) to gain/sustain a
competitive advantage; it requires a commitment of resources
business-level strategy - Answer an action a firm takes (exploiting core competencies) to
gain/sustain a competitive advantage in a specific product market/single geographic market
cost leadership - Answer a set of actions taken to produce goods and services (with acceptable
features) at a low cost
differentiation - Answer a set of actions taken to produce goods and services (at an acceptable
cost) with unique features
focus cost leadership - Answer A set of actions taken to produce goods and services (with
acceptable features) at the lowest cost for a particular competitive segment.
focus differentiation - Answer a set of actions taken to produce goods and services (at an
acceptable cost) with unique features for a particular competitive segment
corporate-level strategy - Answer an action that the firm takes (exploiting core competencies)
to gain/sustain a competitive advantage in multiple produce markets/single geographic market
financial economies - Answer cost savings realized through improved allocations of financial
resources based on investments inside or outside the firm
multipoint competition - Answer exists when two or more diversified firms simultaneously
compete in the same product areas or geographical markets (another approach to gaining
market power through diversification
synergy - Answer added value (the whole is greater than the sum of its parts)
, related diversification - Answer a growth strategy whereby the current target market and/or
marketing mix shares something in common with the new opportunity; leveraging core
competencies, sharing activities, pooled negotiation power, and vertical integration
unrelated diversification - Answer a growth strategy whereby a new business lacks any
common elements with the present business; restructuring, corporate parenting, portfolio
management/analysis, mergers and acquisitions, strategic alliances and joint ventures, internal
development
sharing activities - Answer The sharing of tangible activities across a firm's business units, such
as common manufacturing facilities, distribution channels, and sales forces.
pooled negotiating power - Answer Refers to similar businesses working together (or a
business with its parent) to strengthen the firm's bargaining position.
vertical integration - Answer refers to extending the firm by integrating preceding or
successive productive processes
leveraging core competencies - Answer The transferring of accumulated skills and expertise
across a corporation's business units.
restructuring - Answer corporation seeks firms with unrealized potential with the goal of
improving their efficiency to sell for a profit
corporate parenting - Answer the parent company creates value through its management
expertise by improving the efficiency/effectiveness of the subsidiary
portfolio management/analysis - Answer the corporate office seeks to balance (minimize the
risk) its portfolio of businesses
mergers and acquisitions - Answer Purchase the assets and competencies of other firms.
strategic alliances and joint ventures - Answer Partner (pool resources) to achieve a common
end.
Questions and All Correct Answers
2025-2026 Updated.
strategy - Answer an action a firm takes (exploiting core competencies) to gain/sustain a
competitive advantage; it requires a commitment of resources
business-level strategy - Answer an action a firm takes (exploiting core competencies) to
gain/sustain a competitive advantage in a specific product market/single geographic market
cost leadership - Answer a set of actions taken to produce goods and services (with acceptable
features) at a low cost
differentiation - Answer a set of actions taken to produce goods and services (at an acceptable
cost) with unique features
focus cost leadership - Answer A set of actions taken to produce goods and services (with
acceptable features) at the lowest cost for a particular competitive segment.
focus differentiation - Answer a set of actions taken to produce goods and services (at an
acceptable cost) with unique features for a particular competitive segment
corporate-level strategy - Answer an action that the firm takes (exploiting core competencies)
to gain/sustain a competitive advantage in multiple produce markets/single geographic market
financial economies - Answer cost savings realized through improved allocations of financial
resources based on investments inside or outside the firm
multipoint competition - Answer exists when two or more diversified firms simultaneously
compete in the same product areas or geographical markets (another approach to gaining
market power through diversification
synergy - Answer added value (the whole is greater than the sum of its parts)
, related diversification - Answer a growth strategy whereby the current target market and/or
marketing mix shares something in common with the new opportunity; leveraging core
competencies, sharing activities, pooled negotiation power, and vertical integration
unrelated diversification - Answer a growth strategy whereby a new business lacks any
common elements with the present business; restructuring, corporate parenting, portfolio
management/analysis, mergers and acquisitions, strategic alliances and joint ventures, internal
development
sharing activities - Answer The sharing of tangible activities across a firm's business units, such
as common manufacturing facilities, distribution channels, and sales forces.
pooled negotiating power - Answer Refers to similar businesses working together (or a
business with its parent) to strengthen the firm's bargaining position.
vertical integration - Answer refers to extending the firm by integrating preceding or
successive productive processes
leveraging core competencies - Answer The transferring of accumulated skills and expertise
across a corporation's business units.
restructuring - Answer corporation seeks firms with unrealized potential with the goal of
improving their efficiency to sell for a profit
corporate parenting - Answer the parent company creates value through its management
expertise by improving the efficiency/effectiveness of the subsidiary
portfolio management/analysis - Answer the corporate office seeks to balance (minimize the
risk) its portfolio of businesses
mergers and acquisitions - Answer Purchase the assets and competencies of other firms.
strategic alliances and joint ventures - Answer Partner (pool resources) to achieve a common
end.
