Chapitre 11

Question 1

Marketing Strategy (5)

Answer 1

• Brand extension
  using a successful brand name to market other products
• Push strategy
  spending a large amount of money on trade promotion in
  order to gain or hold shelf space in retail outlets
• Pull strategy
  advertising to “pull” products through the distribution
  channels
• Skim pricing
  offers the opportunity to “skim the cream” from the top of
  the demand curve with a high price while the product is
  novel and competitors are few
• Penetration pricing
  attempts to hasten market development and offers the
  pioneer the opportunity to use the experience curve to gain
  market share with low price and then dominate the industry

Question 2

Financial strategy (2)

Answer 2

• Leveraged buyout
  company is acquired in a transaction financed largely by
  debt usually obtained from a third party
• Reverse stock split
  investor’s shares are split in half for the same total amount
  of money

Question 3

R&D strategy (3)

Answer 3

• Technological leader
  pioneering an innovation
• Technological follower
  imitating the products of competitors
• Open innovation
  firm uses alliances and connections with corporate,
  government, academic labs, and consumers to develop new
  products and processes

Question 4

Purchasing strategy (3)

Answer 4

• Multiple sourcing
  the purchasing company orders a particular part from
  several vendors
• Sole sourcing
  relies on only one supplier for a particular part
• Parallel sourcing
  two suppliers are the sole suppliers of two different parts,
  but they are also backup suppliers for each other’s parts

Question 5

Sourcing decision and their inconveniences (2)

Answer 5

outsourcing : purchasiing elsewhere something you were producing
1. Outsourcing the wrong activities
2. Selecting the wrong vendor
3. Writing poor contracts
4. Overlooking personnel issues
5. Lack of control
6. Overlooking hidden costs
7. Lack of an exit strategy

Offshoring : producing your product in anothe rcountry

Question 6

NPV

Answer 6

Net present value : calculates the value of a project by predicting its payouts,
adjusting them for risk, and subtracting the amount
invested