Question 1

_____ is best described as moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain.

Accepted Answer

A)   Strategic outsourcing
B)   Reverse engineering
C)   Forward integration
D)   Horizontal integration

Question 2

Discuss the benefits and drawbacks of short-term contracting as an alternative to buying in markets.

Accepted Answer

The benefit to short-term contracting li...

Question 3

Today, many companies use PeopleSoft and EDS to avoid maintaining a human resource management system.By doing this, these firms are:

Accepted Answer

A)   engaging in strategic outsourcing.
B)   increasing their level of vertical integration.
C)   offshoring their core activities.
D)   engaging in unrelated diversification.

Question 4

Which of the following statements is true of taper integration?

Accepted Answer

A)   It is the most-integrated alternative to performing an activity within one's own corporate family.
B)   It refers to a situation in which firms narrow their focus on downstream value chain activities and ignore the upstream value chain activities.
C)   It exposes in-house suppliers and distributors to market competition to make performance comparisons possible.
D)   It does not rely on outside-market firms for its supplies.

Question 5

Virtue Products Inc., a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries.This apart, the company does not solely depend on outside distributors to reach its customers.In fact, it has its own retail stores to distribute its products.In this scenario, which of the following alternatives to vertical integration is Virtue Products applying?

Accepted Answer

A)   Concentric integration
B)   Taper integration
C)   Horizontal integration
D)   Conglomerate integration

Question 6

List the drawbacks of vertical integration.

Accepted Answer

Depending on the situation, ve...

Exam 8: Corporate Strategy: Vertical Integration and Diversification

Which of the following statements is true of taper integration?

Correct Answer
verified

Today, many companies use PeopleSoft and EDS to avoid maintaining a human resource management system.By doing this, these firms are:

Correct Answer
verified

List the drawbacks of vertical integration.

Correct Answer
verified
Depending on the situation, ve...
View Answer

Discuss the benefits and drawbacks of short-term contracting as an alternative to buying in markets.

Correct Answer
verified
The benefit to short-term contracting li...
View Answer

Correct Answer
verified

_____ is best described as moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain.

Correct Answer
verified

Exam 8: Corporate Strategy: Vertical Integration and Diversification

Which of the following statements is true of taper integration?

Correct AnswerverifiedShow Answer

Today, many companies use PeopleSoft and EDS to avoid maintaining a human resource management system.By doing this, these firms are:

Correct AnswerverifiedShow Answer

List the drawbacks of vertical integration.

Correct AnswerverifiedDepending on the situation, ve...View AnswerShow Answer

Discuss the benefits and drawbacks of short-term contracting as an alternative to buying in markets.

Correct AnswerverifiedThe benefit to short-term contracting li...View AnswerShow Answer

Correct AnswerverifiedShow Answer

_____ is best described as moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Depending on the situation, ve...
View Answer

Correct Answer
verified
The benefit to short-term contracting li...
View Answer

Correct Answer
verified

Correct Answer
verified