WPC 480 Final Exam Complete Solutions 100% Accurate!!

corporate strategy - ANSWERThe decisions & actions taken to gain & sustain competitive advantage in several industries and markets simultaneously addresses where to compete along 3 dimensions (industry value chain, products/services, geography) vertical integration - ANSWERthe process in which several steps in the product and/or distribution of product are controlled and owned by a single company or entity, in order to increase that company's power in the marketplace -expanding into other activities within the same value chain forward integration - ANSWERinternalizing and owning some activities that are closer to the end customer in the value chain ex.: concentrate producers owning bottlers backward integration - ANSWERinternalizing activities backwards farther from end customers ex.: hermes purses owning the leather suppliers transaction cost economics - ANSWERa theoretical framework that helps explain and predict boundaries of the firm transaction costs - ANSWERcosts associated with an economic exchange the costs associated with activities that are not directly productive but are engaged in only as a consequence of the need to coordinate exchange among the parties in the transaction internal transaction costs - ANSWER-Recruiting and retaining employees -Paying salaries and benefits -Setting up a shop floor -Providing office space and computers, etc.