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Examen
AEM 2601 - prelim 2 || with 100% Errorless Answers.
corporate vs business strategy: 
 
Which business should we be in? 
How should we compete within a given business? correct answers corporate: which business should we be in 
business: how should we compete within a given business 
 
What are the three motives for diversification? correct answers 1) Growth 
2) Risk Spreading 
3) Value Creation 
 
explain how growth is a motivation for diversification correct answers the desire to escape stagnant or declining industries is a powerful motive for di...
Examen
AEM 2601 || with 100% Error-free Answers.
Popularmotive for diversification correct answers value creation 
 
value creation correct answers for diversification to create shareholder value, putting different businesses under common ownership must increase their total profitability 
 
Porter's Three Essential Tests correct answers The Attractiveness Test, The Cost of Entry Test, The Better-Off Test 
 
The Attractiveness Test correct answers must be directed towards attractive industries 
 
The Cost of Entry Test correct answers must not capita...
Examen
AEM 2601 Prelim 2 || All Answers are Valid.
NuevoAEM 2601 Prelim 2 || All Answers are Valid.
Examen
AEM 2601 Prelim 2 || with Accurate Answers 100%.
Vertical Integration correct answers the combination in one company of two or more stages of production normally operated by separate companies. 
 
Benefits of Vertical Integration correct answers - Avoid transaction costs 
- Technical economies from integration 
- Coordination 
 
Costs of Vertical Integration correct answers difference in optimal scale (fedEx) 
prevents developing distinctive capabilities (Rolls Royce) 
difficult administratively if strategically different (coke and coke bottli...
Examen
AEM 2601 Key Words/Concepts Prelim 1 || Already Passed.
Successful Strategy correct answers Effective Implementation of the following: 
(1) long-term, simple and shared objectives 
(2) understanding competitive environment 
(3) objective appraisal and allocation of resources 
 
Two Key Strategy Perspectives correct answers (1) Five Forces- objective is to establish STRONG POSITION and MAXIMIZE PROFIT 
(2) Resource-Based View- objective is to establish SUSTAINABLE competitive advantage 
 
Firm's Goals and Strategy correct answers (1) corporate strat...