Corporate-level Strategy: Horizontal Integration,vertical Integration,and Strategic Outsourcing

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Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
External Analysis: The Identification of Opportunities and Threats
Internal Analysis: Distinctive Competencies,Competitive Advantage,and Profitability
Building Competitive Advantage Through Functional-Level Strategy
Building Competitive Advantage Through Business-Level Strategy
Business-Level Strategy and the Industry Environment
Strategy and Technology
Strategy in the Global Environment
Corporate-Level Strategy: Horizontal Integration,Vertical Integration,and Strategic Outsourcing
Corporate-Level Strategy: Related and Unrelated Diversification
Corporate Performance,Governance,and Business Ethics
Implementing Strategy in Companies That Compete in a Single Industry
Implementing Strategy in Companies That Compete Across Industries and Countries

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Question 1

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A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies.

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Question 2

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Managers use corporate-level strategy to identify which industries a company should compete in to maximize long-run profitability.

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Question 3

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Transfer pricing refers when a company is taken advantage of by another company it does business with after it has made an investement in expensive specialized assets to better meet the needs of the other company.

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Question 4

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When a company stays inside one industry,the problems of sustaining a successful business model and strategies over time can be difficult because of changing conditions in the environment.

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Question 5

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Unfortunately,horizontal integration can not be accomplished by acquisitions or mergers.

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Question 6

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Oracle Corp.,based in Reno,Nevada,has become the world's largest maker of database software largely through a strategy of acquisition.

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Question 7

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At the time of the merger of Hewlett Packard and Compaq,Dell Computer's competitive advantage over Hewlett Packard was based on Dell's cost-leadership business model.

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Question 8

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Horizontal integration can help lower costs when it allows a company to reduce the duplication of resources.

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Question 9

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Product bundling occurs when a firm offers a range of products that are sold together at a single price.

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Question 10

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When Citibank offers home mortgages and credit cards to its checking account customers,it is using horizontal integration strategy.

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Question 11

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Horizontal integration can lead to low cost advantages but rarely to differentiation advantages.

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Question 12

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Horizontal integration almost always increases rivalry in an industry.

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Question 13

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One outcome of horizontal integration is industry consolidation,leading to more bargaining power over buyers and suppliers.

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Question 14

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Vertical integration is undertaken to support the competitive position of a company's core business.

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Question 15

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Competitive bidding makes suppliers reluctant to make investments that tie them closely to their trading partners.

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Question 16

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A strategic alliance is a substitute for horizontal integration.

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Question 17

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Even though companies may invest in specialized assets to build competitive advantage,it is seldom necessary that suppliers do so.

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Question 18

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Vertical integration can strengthen a company's differentiation advantage.

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Question 19

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Vertical integration can raise costs if,over time,a company continues to purchase inputs from company-owned suppliers when independent suppliers can supply the same inputs at lower cost.

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Question 20

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The term bureaucratic costs refers to costs associated with the creation and maintenance of the administrative function in a company.

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