WPC 480 Final Exam – Questions and
Answers
Three dimensions of corporate strategy - Answer-1. Vertical Integration
2. Diversification
3. Geographic Scope
Make or Buy continuum - Answer-Establishes the boundary of the firm. Arrangements
between firms that involve the sharing of resources and capabilities with the intent of
developing processes or products
Vertical Integration - Answer-The firm's ownership of the inputs needed for production or
of the channels through which it distributes its outputs through the value chain.
Backward Vertical Integration - Answer-moving ownership of activities upstream to the
originating inputs of the value chain
Forward Vertical Integration - Answer-moving ownership of activities closer to the end
customer
Diversification - Answer-An increase in the variety of products and services a firm offers
or markets and the geographic regions in which it competes.
Product Strategy Diversification - Answer-Corporate strategy in which a firm is active in
several different product markets.
Geographic Diversification Strategy - Answer-Corporate strategy in which a firm is
active in several different countries.
The Core-Competence Market Matrix - Answer-a framework to guide corporate
diversification strategy by analyzing possible combinations of existing/new core
competencies and existing/new markets
BCG Matrix - Answer-a means of evaluating strategic business units on the basis of (1)
their business growth rates and (2) their share of the market
Build-Borrow-Buy Framework - Answer-Conceptual model that aids firms in deciding
whether to pursue internal development (build), enter a contractual arrangement or
strategic alliance (borrow), or acquire new resources, capabilities, and competencies
(buy).
Types of Diversification - Answer-Related-
Unrelated -
Answers
Three dimensions of corporate strategy - Answer-1. Vertical Integration
2. Diversification
3. Geographic Scope
Make or Buy continuum - Answer-Establishes the boundary of the firm. Arrangements
between firms that involve the sharing of resources and capabilities with the intent of
developing processes or products
Vertical Integration - Answer-The firm's ownership of the inputs needed for production or
of the channels through which it distributes its outputs through the value chain.
Backward Vertical Integration - Answer-moving ownership of activities upstream to the
originating inputs of the value chain
Forward Vertical Integration - Answer-moving ownership of activities closer to the end
customer
Diversification - Answer-An increase in the variety of products and services a firm offers
or markets and the geographic regions in which it competes.
Product Strategy Diversification - Answer-Corporate strategy in which a firm is active in
several different product markets.
Geographic Diversification Strategy - Answer-Corporate strategy in which a firm is
active in several different countries.
The Core-Competence Market Matrix - Answer-a framework to guide corporate
diversification strategy by analyzing possible combinations of existing/new core
competencies and existing/new markets
BCG Matrix - Answer-a means of evaluating strategic business units on the basis of (1)
their business growth rates and (2) their share of the market
Build-Borrow-Buy Framework - Answer-Conceptual model that aids firms in deciding
whether to pursue internal development (build), enter a contractual arrangement or
strategic alliance (borrow), or acquire new resources, capabilities, and competencies
(buy).
Types of Diversification - Answer-Related-
Unrelated -
