BAD 4013 Final || 100% Correct Solutions.
Horizontal Integration correct answers Pursing a concentration strategy by acquiring or
merging with a rival
-To lower costs by achieving greater economic scale
-Porters 5 forces reduce the intensity of rivalry in the industry
-Valuable Resources
-Market Share that is attractive
-Provide new distribution channels correct answers Why Horizontal Integration happens
Example for Market share that is attractive correct answers Southwest bought AirTran
because AirTran had a big share of Atlanta, which is the busiest airport in the world
Example of Providing new distribution channels correct answers Zuffa bought out Strikeforce
because they broadcast on CBS, this might allow Zuffa to gain mainstream exposure of their
product
Mergers correct answers The joining of two similar sized companies into one company
Acquisitions correct answers When one company purchases another company
(Generally the company is smaller than the firm that purchases it)
Example of Acquisition correct answers Disney was bigger than Pixar when it joined together
Diversification correct answers A firm entering an entirely new industry
1. How attractive is the industry that a firm is considering entering?
2. How much will it cost to enter the industry?
3. Will the new unit and the firm be better off? correct answers 3 tests for Diversification
1. Product
2. Geographic Market
3. Product-Market correct answers Types of Corporate Diversification
Product Diversification correct answers Operating in multiple industries
Geographic Market Diversification correct answers Operating in multiple geographic markets
Product-market diversification correct answers Operating in multiple industries in multiple
geographic markets
1. Related Diversification
2. Unrelated Diversification correct answers Types of Diversificaiton
Related Diversification correct answers When a firm moves into a new industry that has
important similarities with the firm's existing industry or industries
Example of Related Diversification correct answers Disney purchased ABC because Film
and TV are both aspects of entertainment
, Unrelated Diversification correct answers When a firm enters an industry that lacks any
important similarities. (Most do not have happy endings)
Example of Good Unrelated Diversification correct answers Coca-Cola bought Columbia
pictures and were able to sell if off for a profit
Example of Bad Unrelated Diversification correct answers Harley Davidson bought a water
bottle company and sold Harley branded bottled water.
Starbucks tried to offer Starbucks branded furniture.
1. To Manage the fit between organization and strategy
2. To measure the impact of strategies
3. to help conserve resources
4. to insure that plans are being followed
5. To identify and help fix aberrations in strategy correct answers Purposes of Control
Systems
-Concise
-Understandable
-Acceptable
-Doable correct answers Issues of Standards
1. Measure Outcome
2. Control Process correct answers Issues of Measurement Types
Validity correct answers Does it measure what it is supposed to
Reliable correct answers something consistent
Functional Structure's Environment, Size, and Goal/Strategy correct answers 1. Best in Low
Uncertainty, Stable
2. Small to Medium
3. Internal Efficiency & Technical Specialization
Business/Product Type Structure's Environment, Size, and Goal/Strategy correct answers 1.
Moderate to high uncertainty
2. Moderate to very large
3. Customer responsiveness & internal effectiveness
Metrix Structure's Environment, Size, and Goal/Strategy correct answers 1. High Uncertainty
2. Small to Medium
3. Flexibility & Specialization
1. Ethnocentric/Nation-Centric
2. Ignorance
3. Arrogance
4. Time Factor correct answers Cultural Diversity Why People Fail
Horizontal Integration correct answers Pursing a concentration strategy by acquiring or
merging with a rival
-To lower costs by achieving greater economic scale
-Porters 5 forces reduce the intensity of rivalry in the industry
-Valuable Resources
-Market Share that is attractive
-Provide new distribution channels correct answers Why Horizontal Integration happens
Example for Market share that is attractive correct answers Southwest bought AirTran
because AirTran had a big share of Atlanta, which is the busiest airport in the world
Example of Providing new distribution channels correct answers Zuffa bought out Strikeforce
because they broadcast on CBS, this might allow Zuffa to gain mainstream exposure of their
product
Mergers correct answers The joining of two similar sized companies into one company
Acquisitions correct answers When one company purchases another company
(Generally the company is smaller than the firm that purchases it)
Example of Acquisition correct answers Disney was bigger than Pixar when it joined together
Diversification correct answers A firm entering an entirely new industry
1. How attractive is the industry that a firm is considering entering?
2. How much will it cost to enter the industry?
3. Will the new unit and the firm be better off? correct answers 3 tests for Diversification
1. Product
2. Geographic Market
3. Product-Market correct answers Types of Corporate Diversification
Product Diversification correct answers Operating in multiple industries
Geographic Market Diversification correct answers Operating in multiple geographic markets
Product-market diversification correct answers Operating in multiple industries in multiple
geographic markets
1. Related Diversification
2. Unrelated Diversification correct answers Types of Diversificaiton
Related Diversification correct answers When a firm moves into a new industry that has
important similarities with the firm's existing industry or industries
Example of Related Diversification correct answers Disney purchased ABC because Film
and TV are both aspects of entertainment
, Unrelated Diversification correct answers When a firm enters an industry that lacks any
important similarities. (Most do not have happy endings)
Example of Good Unrelated Diversification correct answers Coca-Cola bought Columbia
pictures and were able to sell if off for a profit
Example of Bad Unrelated Diversification correct answers Harley Davidson bought a water
bottle company and sold Harley branded bottled water.
Starbucks tried to offer Starbucks branded furniture.
1. To Manage the fit between organization and strategy
2. To measure the impact of strategies
3. to help conserve resources
4. to insure that plans are being followed
5. To identify and help fix aberrations in strategy correct answers Purposes of Control
Systems
-Concise
-Understandable
-Acceptable
-Doable correct answers Issues of Standards
1. Measure Outcome
2. Control Process correct answers Issues of Measurement Types
Validity correct answers Does it measure what it is supposed to
Reliable correct answers something consistent
Functional Structure's Environment, Size, and Goal/Strategy correct answers 1. Best in Low
Uncertainty, Stable
2. Small to Medium
3. Internal Efficiency & Technical Specialization
Business/Product Type Structure's Environment, Size, and Goal/Strategy correct answers 1.
Moderate to high uncertainty
2. Moderate to very large
3. Customer responsiveness & internal effectiveness
Metrix Structure's Environment, Size, and Goal/Strategy correct answers 1. High Uncertainty
2. Small to Medium
3. Flexibility & Specialization
1. Ethnocentric/Nation-Centric
2. Ignorance
3. Arrogance
4. Time Factor correct answers Cultural Diversity Why People Fail
