Exam 6: Corporate Strategy

Summer Technologies Inc. is proud of its managerial personnel who have been able to create unique value for the company. These people have been engaged in coming up with strategic activities that enabled Summer Technologies to grow and establish itself as a reliable brand. This set of abilities of the Summer Technologies personnel can most accurately be termed _________.

Diversification adds value if ________.

Venus Inc. is a large firm that sells several healthcare products such as bathing soaps, shampoos, body creams, and baby products. Each of these products has its own customer base. Individually, each of these products has upheld unique approaches to establish and maintain competitive advantage over its own rival companies that sell similar products. Which of the following strategies does Venus Inc. use for its products?

Zia, the CEO of Indigo Corp., states that it is essential to diversify the company into new markets and to create new products. She believes that it is important and profitable to tap new customer bases and challenging markets as this experience will help the company grow financially as well as expand its knowledge base on strategic management. Which of the following statements strengthens Zia's belief?

In vertical integration, movement in the direction of raw materials is ___.

The search for competitive advantage within a single industry, market, or line of business best defines the term _________.

Acquisitions may fail to create value because of _________.

Amber Corp., a jute manufacturing company, wants to diversify into the food industry. In order to do so, the board of directors decides to move some of its existing resources, expertise, and technology to set the base of the food unit. The market analysts at Amber predict that this unit has a high growth potential. Thus, rather than leaving the new food unit to grow on its own, the board decides to invest in it as it this will help increase the corporate value of the company. In this scenario, Amber Corp. is trying to create value by acting as a(n)_________.

Which of the following statements defines a dominant business?

Blue Work LLC, a software company, purchased an electronics and electrical company and implemented its resources and technologies in the target company. Blue Work changed the entire culture and brand of the target company and introduced its own culture such that the identity of the target company disappeared. Blue Work benefitted from this acquisition and witnessed a significant growth. This type of acquisition is known as a _________.

Two firms recently had a bolt-on acquisition. Martha, the managing director of one of these firms, claims that an integration team is required to decide which tactical elements and operational functions of the two firms should be strategically integrated and implemented. She believes having this team will enable fair decisions to be made, thus inculcating a friendly atmosphere in the new firm. Which of the following statements strengthens Martha's claim?

Neon Colors Corp., a well-established apparel industry, increased its corporate value by purchasing a footwear company as part of its growth strategy. It purchased the footwear company because developing its own operations and processes would be expensive and time consuming. This is an example of a(n)_________.

How does a related-constrained diversification differ from a related-linked diversification?

Galaxy Corp. is a manufacturing company that aims to provide value to its customers by identifying sources of revenue, the intended customer base, products and processes, and details of financing. This method that Galaxy Corp. wants to adopt is termed _________.

Rest & Sleep Inc. is a mattress manufacturing firm. By manufacturing related products such as bed covers, comforters and quilts, and pillows, it has gained significant competitive advantage as it has managed to create profits in all these markets as well. Rest & Sleep creates a challenge for the other companies in the market by providing unique value through its customer services and warranties. Which of the following terms best describes what Rest & Sleep Inc. is practicing?

Movement into adjacent markets by a firm along its own value chain can be best termed _________.

According to the Boston Consulting Group's growth share matrix, which of the following is true of stars?

Stacy works as a manager at Daffodils Corp., a manufacturing firm that has not been performing well. Despite the availability of research materials and databases, she uses her own experience to make acquisitions because she is usually very confident about the success of her plans. This attitude of Stacy can be termed _________.

Marble Cakes Inc., after serving a good number of customers in its home state, has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers. This has enabled the company to successfully maintain its corporate strategy. Marble Cakes Inc. is engaging in _________.

Aquarius Corp., a consumer goods company, offers a chain of products that includes food and beverages, beauty care products, apparels, and home décor. By offering these goods, Aquarius creates more value for itself than it would have if it had sold these products individually. This practice by Aquarius Corp. can be referred to as _________.