BPL 5100 QUIZ 2 >> QUESTIONS AND
ANSWERS LATEST | 2024
To create a competitive edge companies need to focus on ________________ -
customers' evolving wants and needs
Porter's three generic strategies: - 1. Overall Cost Leadership
2. Differentiation
3. Focus
Differentiation is perceived...
Differentiation is perceived from the____________ - client/customer
Differentiated goods are the opposite of__________ - luxury goods
Luxury goods are only for__________. Differentiated goods are marketed to
____________ - a niche group of people; everyone
Corporate Level Strategies are also known as____________ - growth/expansion
strategy
Concentration Strategy - -staying within your business segment (doing more of the
same thing in your area of expertise)
-Staying within your existing business area and opening more of the same in different
locations
Concentration Strategies add more ___________ - outlets/locations ex. Every
neighborhood has a Mcdonald's, every neighborhood has a Starbucks
The 3 components of concentration strategies are_____________ - 1. Market
penetration
2. Market development
3. Product Development
market penetration - making your place known in a market
Market development - going into new markets. Taking existing products and selling to
new markets
Product Development - developing new products within the same market
, Diversification (growth) Strategies - Branching out ot new business areas
Modes of Diversification - Merger and Acquisitions
Alliances
Internal Development
mergers - joining with two equal companies
acquisitions - acquiring another company
Internal Development - the most organic because it is all done with their organizational
capabilities, internally, in house
Diversification is often times _______________and_________________ - risky; costly
most mergers and acquisitons are____________ - unsuccessful
Why do companies still pursue mergers and acquisitons although they are
unsuccessful? - Without risk you can't make money
Synergy - the power that results from the combination of two or more forces
Related diversification - More of the same types of products. Trying to share intangible
and tangible resource benefits.
ex. Pepsico taking on Tropicana
Reasons why companies pursue Related Diversification: - 1. Economics of Scope
2. Enhancing Revenue/Differentiation
3. Market Power
4. Pooled Negotiation
5. Vertical Integration
Market Power - Restricting or controlling the supply chain to you
Pooled Negotiation (power) - restrict and keep competitors out
Backwards integration - buying out suppliers to control your upstream
Ex. toyota buying out seatbelt manufacturers so they can't sell those seatbelts to
anyone else)
Forward integration - buying out distributors to control your downstream)
(ex. Ford buying out dealerships so that everyone who sells Ford cars can sell it for the
same price)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Mboffin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
