Chapter 5 - Strategic Integeration Flashcards
1
Q
Strategic Integration
A
- Gradual combination & transformation
2. Independent components- cohesive business units
2
Q
Positive implication of Strat Integration
A
- Adjusting struct and relationships
- Automation and upgradation
- Standardization of business process
- Adjusting targets & rewards system
3
Q
Vertical integration
A
- More process-R.M or consumer
2. Many steps-prod/dist- single company
4
Q
Issues to be considered
A
- satisifed- present values
- activities-outsourced
- demand stability for product
- addnl capacity - existing product
5
Q
Diversification
A
Corp strat to increase profits from new products and markets
6
Q
Types of diversification
A
- Related
- Unrelated
- Concentric
- Conglomerate
- Internal
- External
7
Q
Choice of direction
A
- Vertical move -> tech progress
- Horizontal movie -> Inc % of comm sale, market share
- lateral movie -> stabilize sales , tech base
8
Q
Types of conglomorates
A
- Financial
- managerial
- Concentric
9
Q
Internal Development
A
- Build own capabilities to the business
10
Q
Organic growth
A
- Expanding product range
- Targeting new markets
- Expanding dist network
- Benefiting from econ scale
11
Q
Methods of internal development
A
- Changing price
- Advertising
- Improved products
- Selling in diff location
- Credit facility
- Inc Cap-Ex
- T & D
12
Q
Strategic Alliance
A
- Relationship-two parties- pursue- agreed goals
2. meet critical business need- independent
13
Q
Steps in strategic alliance
A
- strategy development
- Partner assessment
- contract negotiation
- Alliance a) operation b) termination
14
Q
Reasons for alliance
A
- Slow cycle market
- Standard cycle market
- Fast cycle market
15
Q
Types of strat alliance
A
- Joint venture
- Eq and Non eq strat alliance
- Global strat alliance
- others
i) Outsourcing
ii) Affiliate marketing
iii) Tech licensing
iv) Franchising
v) R&D
