WPC 480 FINAL ASU 2024-2025 EXAM
WITH VERIFIED QUESTIONS AND LATEST
100% CORRECT ANSWERS GRADED A+
Corporate strategies - ANS-Where to compete
Types of corporate strategies - ANS-Vertical integration, diversification, geographic scope, alliances,
mergers & acquisitions
Vertical Integration - ANS-Practice where a single entity controls the entire process of a product, from
the raw materials to distribution
Backward integration - ANS-moving ownership of activities upstream to the originating inputs of the
value chain
Forward integration - ANS-Owning activities closer to the customer
Diversification - ANS-Products, geographic, market
Geographic scope - ANS-Where should the company compete geographically in terms of regional,
national, or international markets
, Strategic Alliances - ANS-Non-equity contractual agreement, equity, joint venture
mergers - ANS-Horizontal integration
Acquisitions - ANS-Either friendly or hostile takeovers
core competencies - ANS-unique strengths, embedded deep within a firm, that are critical to gaining and
sustaining competitive advantage
economies of scale - ANS-the average costs of per unit fall as the output increases
Economies of scope - ANS-savings that come from producing two (or more) outputs at less cost than
producing each output individually, despite using the same resources and technology
Transaction costs - ANS-All internal & external costs associated with an economic exchange whether
within a firm or in markets
External transaction costs - ANS-costs of searching for a firm or an individual with whom to contract, and
then negotiating, monitoring, and enforcing the contract
internal transaction costs - ANS-costs pertaining to organizing an economic exchange within a hierarchy;
also called administrative costs
Benefits of vertical integration - ANS-Lower cost, improve quality, facilitating scheduling & planning,
facilitating investments in specialized assets: co-located assets, unique equipment, human capital;
securing critical supplies & distribution channels
Risk of vertical integration - ANS-Increasing costs, reducing quailing, reducing flexibility, increasing the
potential for legal repercussions
Alternatives for vertical integration - ANS-Taper integration, and strategic outsourcing
WITH VERIFIED QUESTIONS AND LATEST
100% CORRECT ANSWERS GRADED A+
Corporate strategies - ANS-Where to compete
Types of corporate strategies - ANS-Vertical integration, diversification, geographic scope, alliances,
mergers & acquisitions
Vertical Integration - ANS-Practice where a single entity controls the entire process of a product, from
the raw materials to distribution
Backward integration - ANS-moving ownership of activities upstream to the originating inputs of the
value chain
Forward integration - ANS-Owning activities closer to the customer
Diversification - ANS-Products, geographic, market
Geographic scope - ANS-Where should the company compete geographically in terms of regional,
national, or international markets
, Strategic Alliances - ANS-Non-equity contractual agreement, equity, joint venture
mergers - ANS-Horizontal integration
Acquisitions - ANS-Either friendly or hostile takeovers
core competencies - ANS-unique strengths, embedded deep within a firm, that are critical to gaining and
sustaining competitive advantage
economies of scale - ANS-the average costs of per unit fall as the output increases
Economies of scope - ANS-savings that come from producing two (or more) outputs at less cost than
producing each output individually, despite using the same resources and technology
Transaction costs - ANS-All internal & external costs associated with an economic exchange whether
within a firm or in markets
External transaction costs - ANS-costs of searching for a firm or an individual with whom to contract, and
then negotiating, monitoring, and enforcing the contract
internal transaction costs - ANS-costs pertaining to organizing an economic exchange within a hierarchy;
also called administrative costs
Benefits of vertical integration - ANS-Lower cost, improve quality, facilitating scheduling & planning,
facilitating investments in specialized assets: co-located assets, unique equipment, human capital;
securing critical supplies & distribution channels
Risk of vertical integration - ANS-Increasing costs, reducing quailing, reducing flexibility, increasing the
potential for legal repercussions
Alternatives for vertical integration - ANS-Taper integration, and strategic outsourcing
