An interesting story happened on a Strategy Committee meeting of a large industrial holding company. The Committee members discussed the opportunity to acquire one of the company’s suppliers, producing critically important components. At some point in time a top-manager suggested to acquire not one but two main suppliers, in order to have a greater control of the market. And the meeting ended up with the decision about the purchase of majority interest in all suppliers in this market. What is the name of such a phenomenon?
An interesting story happened on a Strategy Committee meeting of a large industrial holding company. The Committee members discussed the opportunity to acquire one of the company’s suppliers, producing critically important components. At some point in time a top-manager suggested to acquire not one but two main suppliers, in order to have a greater control of the market. And the meeting ended up with the decision about the purchase of majority interest in all suppliers in this market. What is the name of such a phenomenon?
Rosencrantz and Guildenstern, managers of a small film Studio, have been very busy lately. They write a business plan. What circumstances could be the reason for this?
- They need significant funds to shoot an expensive costumed series about Shakespeare.
- They have earned significant funds from the sale of the series about Henry VIII and now have to decide which of the studio's projects to support.
- The owner of the Studio, Mr. Fortinbras, decided to involve his grandson in the family business and make him a co-owner of the company.
- The owner of the Studio, Mr. Fortinbras, decided to repurpose the company into a production center for actors and musicians.
- They realized that the promotion of film studios needs a strategy.
What criteria are used to group strategic alternatives in a SWOT analysis?
- Relevance for the company
- Feasibility
- Timelines for initiatives implementation
- The volume of needed investment for initiatives implementation
- The grouping of strategic alternatives is a creative process not based on specific criteria
The strategy of a reverse vertical integration helps the company to:
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- ensure the quality of raw materials
- better understand customers’ preferences
- protect the company from costs’ inflation
- control sales channels
- enter new markets
Lady of Tarth, opening her own business – a school of sword fighting, - has been very traditional. She hired a financier, a chief swordsman in charge of the coaching team, a commercial director and an HR manager. What advantages did she hope to get from a firm with such a structure compared to a simple linear one?
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- Quick response to direct instructions
- Easy coordination
- Use of experienced professionals
- Simple interrelationships
- Savings, because universal specialists are more expensive
In the modern economy, companies use such a tool as changing the position of the company or its product in the market (repositioning). Specify the reasons for the change of position.
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- The emergence of new useful properties of the product.
- The previous idea of positioning is outdated.
- Repositioning of competitors ' products.
- A wish of company management.
- Expanding the target audience of consumers.
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