Final Exam TMP Questions With Correct
Answers
Scope (vertical and horizontal) - answerProduct Scope (the whole product) - Vertical
Market Scope - Horizontal
What is scope? And what are the three primary types of scope noted? (three of them) -
answerThe range of activities a company is involved...
-factor cost differences (locating overseas to exploit lower prices of inputs to other countries)
-Economies of scale(competitive advantage by selling their goods abroad and thereby achieving
a much larger scale
-exploiting knowledge around the world (selling the original product in a new country, or
replicating the domestic strategy in the new market)
What is the difference between vertical and horizontal scope and recognize examples of each -
answer✔Vertical scope refers to owning or controlling various stages of the production or
distribution process, while horizontal scope refers to offering a range of products or services
within a specific industry or market segment. Examples of vertical scope include a clothing
manufacturer owning textile mills and retail stores, while examples of horizontal scope include a
technology company producing smartphones, tablets, and laptops.
What is vertical scope, what is its primary goal, and what are the types? - answer✔-Vertical
integration as a strategy where a company owns or controls its suppliers, distributors, or retail
locations.
-Primary Goal is to control quality or costs
types:
-long term contracts, - spot sales/purchases
-informal supplier/customer relationships
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