Week 11 Strategies in Action Flashcards
(37 cards)
Gaining ownership or increased control over distributors or retailers.
FORWARD INTEGRATION
Focuses on buying component companies that are part of your distribution chain.
FORWARD INTEGRATION
It is where business activities are expanded to include control of the direct distribution or supply of a company’s products.
FORWARD INTEGRATION
Seeking ownership or increased control of a firm’s suppliers.
BACKWARD INTEGRATION
A backward integrative growth strategy would involve buying one of your suppliers as a way to better control your supply chain.
BACKWARD INTEGRATION
Doing so could help you to develop new products faster and potentially more cheaply.
BACKWARD INTEGRATION
Seeking ownership or increased control over competitors.
HORIZONTAL INTEGRATION
type of merger that takes place between two companies operating in the same industry.
These companies are usually competitors and merge to gain higher market power and economies of scale.
HORIZONTAL INTEGRATION
; both are huge drug companies
Pfizer acquires Wyeth
(SMIC) was acquiring a 34.5-percent stake in 2GO, for its first foray into the fast-growing logistics business.
SM Investments Corp
, founded by tycoon John Gokongwei, was selling the rights to manufacture and distribute Hunt’s products to Century Pacific Food’s Corp, the maker of Century Tuna and Argentina Corned Beef.
Universal Robina Corp
The _______________ is acquiring nearly half of online retailer Zalora , as it expands into e-commerce .
Ayala Group
Seeking increased market share for present products or services in present markets through greater marketing efforts.
MARKET PENETRATION
Is a business strategy whereby a business attempts to find new groups of buyers as potential customers for its existing products and services.
MARKET DEVELOPMENT
Is a creation, innovation, utility enhancement or continuous improvement of earlier features (design, service, etc.) of an existing product or developing (manufacturing) an entirely new kind of product to satisfy the requirements of its end-users (consumers).
PRODUCT DEVELOPMENT
Seeking increased sales by improving present products or services or developing new ones
PRODUCT DEVELOPMENT
Occurs when a firm moves into a new industry that has important similarities with the firm’s existing industry or industries.
RELATED DIVERSIFICATION
Honda Motor Company provides a good example of leveraging a core competency through _________________.
related diversification.
_________ is best known for its cars and trucks, the company started out in the motorcycle business.
Through competing in this business, ____________ developed a unique ability to build small and reliable engines.
When executives decided to diversify into the automobile industry, _________ was successful in part because it leveraged this ability within its new business.
Honda
Adding new, unrelated products or services
UNRELATED DIVERSIFICATION
Regrouping through cost and asset reduction to reverse declining sales and profit.
RETRENCHMENT
A common conception of _____________ is that this is when a business cuts its headcount because the company isn’t making money or is in danger of taking serious losses.
retrenchment
EXAMPLES OF ___________
MITSUBISHI was bleeding to the tune of 1.2B pesos in years 1997 and 1998.
To stop the losses, it implemented many cost-cutting measures.
It tried to reduce office supplies use, deferred project implementation, froze hiring, and implemented a 5% cut in managerial salaries among others.
RETRENCHMENT
__________, the sewing machine maker, declared bankruptcy.
SINGER
