WPC 480 Midterm 2 Exam Questions with Latest Update
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Course
WPC 480
Institution
WPC 480
corporate strategy - Answer-determining boundaries of a firm (scope of a firm) Where to compete?
Vertical Integration - Answer-process in which several steps in the production and/or distribution of a product or service are *controlled and owned by a single company*
forward integration - Answ...
WPC 480 Midterm 2 Exam Questions
with Latest Update
corporate strategy - Answer-determining boundaries of a firm (scope of a firm) Where to
compete?
Vertical Integration - Answer-process in which several steps in the production and/or
distribution of a product or service are *controlled and owned by a single company*
forward integration - Answer-takes information entered into a given system and sends it
automatically to all downstream systems and processes
buys apart of the economic value chain that happens after manufacturing
backward integration - Answer-takes information entered into a given system and sends
it automatically to all upstream systems and processes
buying a part of the economic value chain that happens before manufacturing
ex. Hermes
Boundaries of the firm - Answer-"why does a firm exist and to what extent should the
firm expand?"
transaction cost economies - Answer-helps explain and predict boundaries of the firm
helps managers decide
-which activities to perform in house (Internal Cost)
-services and products to obtain from the external market (External Cost)
asset specificity - Answer-unique assets with high opportunity cost
ex. Auto parts and assembly
Firm vs. Market (make or buy) - Answer-Firm: more control but less flexibility
Market: more flexibility but less control
Diversification - Answer-range of products should a firm offer and what geographic
markets to target
Single Business - Answer-Leverages its competencies
ex. Coca-Cola, Facebook
Dominat Business - Answer-dominant and minor business share competencies
ex. Harley Davidson
, related constrained - Answer-businesses general share competencies
ex. Nike, ExxonMobil
related linked - Answer-some businesses share competencies
ex. Amazon, Disney
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