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Globus Test 3 Questions with 100% Correct Answers | Updated & Verified 2024/2025
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Globus Test 3 Questions with 100% Correct Answers | Updated & Verified 2024/2025
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Globus Test 3Corporate Strategy - ANSthe selections that senior management makes and the goal-directed
movements it takes to gain and maintain competitive gain in numerous industries and markets
concurrently
-vertical integration: enterprise fee chain describes the transformation of raw materials into
completed goods and offerings along wonderful vertical adjustments
-diversification: what variety of services and products need to the agency provide?
-geographic scope: in which ought to the corporation compete geographically in terms of nearby,
national, or worldwide markets?
Why companies want to grow? - ANS1. Boom profits
2. Lower prices
3. Growth market electricity
4. Lessen chance
five. Encourage management
transaction price economics - ANSa theoretical framework in strategic control to give an
explanation for and expect the boundaries of the company, that is primary to formulating a
company method this is more likely to cause competitive benefit
transaction expenses - ANSall inner and outside expenses associated with an monetary
change, whether inside a company or in markets
outside transaction expenses - ANScosts of searching for a company or an man or woman with
whom to agreement, after which negotiating, tracking, and enforcing the settlement
inner transaction charges - ANScosts pertaining to organizing an monetary trade within a
hierarchy; additionally referred to as administrative fees
Backward vertical integration - ANSchanges in an industry value chain that involve transferring
possession of sports upstream to the originating (inputs) point of the fee chain
Forward vertical integration - ANSchanges in an enterprise cost chain that involve moving
ownership of sports in the direction of the quit (consumer) point of the cost chain
Benefits of Vertical Integration - ANS-reducing fees
-improving great
-facilitating scheduling and planning
, -facilitating investments in specialized assets
-securing important supplies and distribution channels
Risks of Vertical Integration - ANSincreasing prices, decreasing first-rate, decreasing flexibility,
growing the potential for prison repercussions
taper integration - ANSa manner of orchestrating cost sports wherein a company is backwardly
incorporated but additionally is based on outdoor marketplace corporations for a number of its
components, and/or is forwardly integrated however additionally is based on outside
marketplace firms for some of its distribution
strategic outsourcing - ANSmoving one or more inner price chain sports outdoor the company's
limitations to other companies within the industry fee chain
4 fundamental styles of business diversification - ANSsingle enterprise: low degree of
diversification. Derives greater than ninety five percent of its revenues from 1 business.
Dominant enterprise: derive among 70-95 percentage of its sales from a unmarried business
however it peruses at least another commercial enterprise interest
related diversification: corporate method in which a firm derives much less than 70 percentage
of its revenues from a single enterprise interest and obtains sales from different traces of
enterprise that are linked to the primary enterprise pastime
unrelated diversification: aka the conglomerate: derives much less than 70 percentage of its
revenues from a unmarried commercial enterprise and there are few, if any, linkages amongst
its business.
Conglomerate - ANSa company that mixes two or greater strategic business devices beneath
one overarching agency; follows an unrelated diversification method
related restricted diversification approach - ANSa type of related diversification method wherein
executives pursue simplest agencies where they can follow the assets and middle
competencies already available within the number one commercial enterprise
associated linked diversification strategy - ANSa sort of associated diversification strategy
wherein executives pursue numerous companies opportunities that proportion handiest a
restricted variety of linkages
center competence-market matrix - ANSa framework to guide corporate diversification approach
by way of analyzing possible mixtures of current/new center abilties and existing/new markets
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