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QUESTION 1 Which of the following statements is true about strategic alliances?
In strategic alliances, companies may choose to cooperate at any stage along the value chain. QUESTION 2
Identify a reason why a company would choose to make versus buy. Select one.
They have the capability to perform an activity better than other firms. QUESTION 3
Pisces Corp. is an apparel manufacturing company. It purchased a few of its raw material suppliers and set up their factories close to the clothing stores so that the company does not have to invest in transportation charges. This is an example of which of the following? Select one.
Backward integration
QUESTION 4
Outsourcing is advantageous when which of the following occurs? Select one.
There is high technological uncertainty in an industry.
QUESTION 5
Which of the following is a danger of vertical integration? Select one.
Loss of flexibility to quickly make changes to a business. QUESTION 6
After serving a good number of customers in its home state, Marble Cakes, Inc. has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers. This has enabled the company to successfully maintain its corporate strategy. Marble Cakes, Inc. is engaging in which of the following? Select one.
Horizontal diversification
QUESTION 7
Which of the following statements is true about strategic groups? Select one.
The firms within each group compete in similar ways. QUESTION 8
Which of the following statement is true of a corporate strategy? Select one.
It involves competing in a core industry or business and operating in adjacent business or markets.
QUESTION 9 In the context of the six Ss, synergy occurs in which of the following circumstances? Select one.
Different elements of a system interact in a way that creates more value together than the elements create separately. QUESTION 10
The sequence of all activities performed by a firm to turn raw material into a finished product that is sold to a buyer describes which of the following? Select one.
Value chain
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