Business Capstone Exam 2 2023 with 100% correct answers
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Course
Capstone
Institution
Capstone
Business Capstone Exam 2 2023
What is a firm's core strategy - ANSWER-obtain competitive advantage, drive the company. Business level 80% of the time
List the business-level strategies - ANSWER-Differentiation:
Cost leadership:
Focus differentiation:
Differentiation cost leadership
In...
Managerial motive [CEO] : More compensations, job security
How do CEOs protect themselves against hostile takeovers - ANSWER-Golden parachute (Stock)
Asset restructure
Financial restructure
Buy shares back
Reincorporate in another state or country
, Send green mail (buy stock back)
How does the differentiation strategy reduce the power of the five forces - ANSWER-Threat of new
entrants: have to spend large amount to differentiate
Power of buyers: Satisfaction of unique customer needs and wants
Power of suppliers: Pass costs to customers, price elasticity analysis, buy out suppliers, or switch
Rivalry: A well crafted differentiated strategy set apart from competition
Substitutes: They gain power if the economy is downturning
How does the cost leadership strategy reduce the power of the five forces - ANSWER-Threat of new
entry: create economy of scale, so it's difficult to imitate
Power of Buyers: low prices keep customers happy
Power of suppliers: bulk buying
Rivalry: economy of scale
Substitutions - low cost provider will carry the substitute
What are the risks associated with each business-level strategie - ANSWER-Differentiation: Changing
needs and wants, too small of a market, cheep imitators
Cost leadership: Process tech can be copied, inadequate attention to quality
Focus Cost Leadership & Differentiation: Mass producer chooses to focus on your segment, narrow
market needs to become mass market need
Integrated differentiation and cost leadership: Too much emphasis on cost leadership, not doing either
cost leadership or differentiation very well
What are the reasons for going overseas - ANSWER-cheaper: raw materials, labor, taxes/tax havens,
financing costs. Euro bond: Cheaper than foreign bond because of lack of regulation
access to good technology
Less regulation - environmental
Saturated local markets lead to entering foreign markets
Globalization
Oligopoly
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