BUS 475 - Exam 2 (100% Verified questions with correct answers)
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Course
BUS 475
Institution
BUS 475
business unit strategy correct answers the search for competitive advantage within a single industry, market, or line of business
corporate strategy correct answers the search for value and competitive advantages through participation in several different industries and markets
vertical integ...
BUS 475 - Exam 2 (100% Verified questions with correct answers)
business unit strategy correct answers the search for competitive advantage within a single industry, market, or line of business
corporate strategy correct answers the search for value and competitive advantages through participation in several different industries and markets
vertical integration correct answers movement into adjacent markets by a firm along its own value chain
backward integration correct answers movement of a firm along its own value chain in the direction of raw materials
forward integration correct answers movement of a firm along its own value chain in the direction of sales, service, or warranty operations
horizontal diversification correct answers the movement into an adjacent or unrelated market that
is not along a firm's own value chain
single business correct answers a firm earning more than 95% of the revenues from a single line of business
dominant vertical business correct answers a firm that earns more than 70% of its revenue from its main line of business and the rest from businesses located along the value chain
dominant business correct answers a firm that earns more than 70% of revenue from its main line
of business and the remainder from other lines across different value chains
related-constrained diversification correct answers a firm that earns less than 70% of its revenue from its main line of business and its other lines of business share product, technological, and distribution linkages with the main business
unrelated diversified firm correct answers competes in product categories and markets with few, if any, links between them
adjacent market correct answers a market or industry that is closely related to markets or industries a firm currently competes in
slack correct answers unused resource capability
economy of scope correct answers activities where the average cost of producing two different products is less when delivered together than separately management skill correct answers the individual and collective abilities of a firm's management team to engage in value-creating activities
synergy correct answers action between different elements of a system that creates more value together than the elements create separately
core competencies (shared knowledge) correct answers collective knowledge that can be distributed throughout the organization to create value
business model correct answers a method to enable the creation and exchange of value between companies and their customers
dominant logic correct answers a conceptualization of a business, or a set of rules for competition, that applies to seemingly unrelated product markets or industries
internal capital market correct answers the movement of funds, talent, or knowledge from unit to unit directed by the leaders of the firm
hubris correct answers excessive pride, arrogance, or overconfidence
sunk cost fallacy correct answers the belief of managers that investment in a failed acquisition must continue because significant amounts have already been invested
greenfield entry correct answers entry into an adjacent market by a firm that opens its own operations
acquisition correct answers the purchase of another company or its assets
due dilligence correct answers the process whereby managers closely examine the target firm to understand its core processes, strengths, and weaknesses
takeover correct answers an acquisition where the acquiring firm absorbs the target firm, which ceases to exist
merger correct answers an acquisition with the goal of creating a new firm from the components of the two pre-acquisition firms
integration team correct answers a group of individuals from different functional areas of an acquiring firm that coordinate and manage the integration of the target company after the acquisition has closed
bury, build, blend, bolt on correct answers The four B's of integration strategy
outsourcing correct answers the process where a firm contracts out a business process or activity to an external supplier
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