WPC 480 Chae Final UPDATED ACTUAL Questions and CORRECT Answers
6 views 0 purchase
Course
WPC 480
Institution
WPC 480
WPC 480 Chae Final UPDATED ACTUAL
Questions and CORRECT Answers
What is Corporate strategy? - CORRECT ANSWER - Actions to sustain/gain comp. adv.
in several industries and markets
Where does corporate strategy compete? - CORRECT ANSWER - 1)Industry value chain:
vertical integration
2)Produ...
WPC 480 Chae Final UPDATED ACTUAL
Questions and CORRECT Answers
What is Corporate strategy? - CORRECT ANSWER - Actions to sustain/gain comp. adv.
in several industries and markets
Where does corporate strategy compete? - CORRECT ANSWER - 1)Industry value chain:
vertical integration
2)Product and services: diversification
3)Geography (regional, national, global mkts)
What is Vertical integration? - CORRECT ANSWER - Process where several steps in
production are controlled and owned by a single company
threat of opp. is highest when paired with asset specificity problem
,Asset specificity - CORRECT ANSWER - Unique assets with high opportunity cost,
most value in first use than next best use.
Should a firm make or buy? - CORRECT ANSWER - C in house < C market= vertical
integrate
Make > Buy =vertical integrate, no = outsource
Which is an example of internal trans. cost?
a. pertaining to setting up a floor
b. searching for suitable manufacturer
c. negotiating prices with business consultant
d. outsourcing papyroll maintenance
e. backward vertical integration - CORRECT ANSWER -A
T/F Threat of opportunism is the least when a party to an exchange has made transaction-specific
investments - CORRECT ANSWER -F
T/F Flexibility is most valuable when the decision-making setting faced by a firm is uncertain. -
CORRECT ANSWER -T
T/F When depending largely on an input that is valueable, rare and costly to imitate, it is optimal
to carry out the exchange on the open market - CORRECT ANSWER -F
Levels of strategy - CORRECT ANSWER - 1. Corporate (where to compete)
2. Business (how to compete)
3. Functional (how to execute)
, Diversification - CORRECT ANSWER - Range of products and service a firm should
offer
Types of diversification - CORRECT ANSWER - -Single business. 95, A
-Dominant business. 70-95, AB
-Related constrained. <70 ABC
-Related Linked. <70 ABCD
-Unrelated <70, A B C (separated)
Benefits of diversification - CORRECT ANSWER - Reduce costs and increase value,
economies of scale and exploit economies of scope to create synergy across business
a. limit learning-curve and experience-curve effect
b. benefit from economies of scale and scope
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 MGRADES. 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.
