Definitions

Question 1

Corporate-Level Strategy

Answer 1

Vertical Integration
Corporate Diversification
Strategic Alliance
Mergers and Acquisitions

Question 2

Vertical Integration Definition

Answer 2

Number of steps within a value chain that a firm accomplishes within its boundaries.

Question 3

Vertical Integration creates value

Answer 3

Cost reduction

Revenue enhancement

Question 4

Corporate Diversification Definition

Answer 4

When a firm operates in multiple industries or markets at once

Question 5

Strategic Alliance Definition

Answer 5

When 2 or more independent organizations cooperate in the development, manufacture or sale of products or services

Question 6

Strategic Alliance creates value

Answer 6

By improving current operations, creating a favorable competitive environment, and facilitating entry and exit

Question 7

Mergers

Answer 7

When two equally sized firms join

Question 8

Acquisitions

Answer 8

When a firm purchases a second firm