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32.
Neon Electronics Inc. sourced touch screens required for its tablet computers, cell phones,
and televisions from a manufacturer in China. But the demand for such components was
high globally, and the supplier could not meet the quality standards of Neon Electronics.
Thus, Neon Electronics decided to set up its own unit to develop and manufacture the
required touch screens. What does this scenario best illustrate?
33.
Which of the following best illustrates forward vertical integration?
34.
How do firms benefit from vertical integration?
35.
_____ are best described as unique assets with high opportunity costs that have
significantly more value in their intended use than in their next-best use.
36.
Which of the following best illustrates physical-asset specificity?
37.
Which of the following best illustrates site specificity?
38.
Investments in specialized assets tend to incur high opportunity costs because the
39.
Virtue Products Inc., a large conglomerate, procures a few component parts from external
suppliers and also manufactures some of the key raw materials in its own subsidiaries.
This apart, the company does not solely depend on outside distributors to reach its
customers. In fact, it has its own retail stores to distribute its products. In this scenario,
which of the following alternatives to vertical integration is Virtue Products applying?
40.
Apple and Nike have their own retail outlets and also use other independent retailers, both
the brick-and-mortar type and online, to sell their products. This is an example of
41.
Which of the following statements is true of taper integration?
42.
_____ is best described as moving one or more internal value chain activities outside the
firm's boundaries to other firms in the industry value chain.
43.
A firm that engages in strategic outsourcing typically
44.
Today, many companies use PeopleSoft and EDS to avoid maintaining a human resource
management system. By doing this, these firms are
45.
PepsiCo operates in many countries and sells a wide variety of aerated drinks, other
beverages, different types of chips, and Quaker Oats goods to achieve continuous growth.
From this data, we can conclude that PepsiCo has been involved in
46.
While KFC focuses on international markets, its competitor, Chick-fil-A, focuses on the
domestic U.S. market. What is the reason behind this strategic difference?
47.
_____ is best described as an increase in the variety of products and services a firm offers
or markets and the geographic regions in which it competes.
48.
When a firm is said to be pursuing a geographic diversification strategy, it means that the
firm will
49.
BM Goods Inc. is a large conglomerate that operates only in its home country. The
company competes in industries like the consumer electronics, health care, hotel, airlines,
education, and steel industries. Which of the following diversification strategies does this
best illustrate?
50.
Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its
watches through company-owned retail outlets in major cities of the emerging nations.
Which of the following types of diversification strategies is the firm pursuing?
51.
Fantastica Industries, a U.S.-based large conglomerate, competes in the hospitality,
education, telecommunications, entertainment, airlines, and chemical industries. It
currently operates in about 30 nations, and is planning to expand its portfolio by investing
in rapidly developing countries. Which of the following strategies is Fantastica Industries
pursuing?
52.
White Leo Motors (WLM) Inc. generates a major portion of its revenues by manufacturing
luxury sports cars. However, the company also derives an insignificant percent of its
annual revenues by selling its sports merchandise that includes apparel, shoes, and other
accessories under the same brand name. Which of the following terms best describes
WLM?
53.
Which of the following corporate strategies did ExxonMobil pursue by acquiring XTO
Energy, a natural gas company?
54.
When executives of a firm consider business opportunities only where they can leverage
their existing competencies and resources, it can be concluded that the firm is using
55.
Evara Inc. started as a luxury brand for designer apparel. Soon, the company expanded by
launching its own line of premium perfumes, watches, bags, and home furnishings. This
expansion allowed the businesses under the company to share a few, if not all, of the
common competencies in products, services, technology, and distribution. Which of the
following corporate strategies is Evara pursuing in this scenario?
56.
TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a
related-constrained diversification strategy. How do the two firms differ from each other?
57.
A firm follows a(n) _____ when less than 70 percent of its revenues come from a single
business and there are few, if any, linkages among its businesses.
58.
A _____ is best defined as a company that combines two or more strategic business units
under one overarching corporation and follows an unrelated diversification strategy.
59.
Red Empire Inc., a large multinational company owned by two partners, is active in the
petroleum, capital market, chemicals, steel, beverages, hospitality, airlines, education,
automobiles, and consumer electronics industries. The company has multiple brands and
a large product portfolio under its banner. Which of the following terms would best
describe this company?
60.
How does a conglomerate benefit from following an unrelated diversification strategy?
61.
Which of the following companies will be considered as a conglomerate?
62.
With reference to the Strategy Highlight 8.2, the Tata Group's corporate strategy is
attempting to
63.
The core competency of MotorCraft Inc. is its fuel-efficient engine found in its cars. These
engines are developed and built in-house. The company realizes that there is a new
market opportunity to diversify. Thus, it produces the car engines on a large scale and
sells them to other automobile companies. In this scenario, MotorCraft is
