MGT 8803 SUPPLY CHAIN EXAM
A Blue Ocean Strategy is a business level strategy that successfully
combines differentiation and cost leadership activities using value
innovation to reconcile the inherent trade-offs. - ANSWERS-True
George is the SVP of Strategy and Innovative Solutions for Georgia
Lumber Company, a family owned business that offers the "finest of
materials in Pine and Hardwood lumber". The firm is divided into two
SBUs (Strategic Business Units). One SBU, North Georgia Mills,
sells directly at wholesale prices to regional Building and
Construction firms as well as to Home Improvement stores like Home
Depot and Lowes. The other SBU, North Georgia Products, sells
directly to the public at three retail locations located in North and
Central Georgia. Lumber sold at these locations is specifically milled
for barns and other out buildings one might find on a farm or a ranch.
Although family owned, the business (Georgia Lumber Company)
employs over 300 employees and in its most recent year, generated
about $65 million in net revenues. The Georgia Lumber Company,
does not own its own forest or timber production facilities and sources
a - ANSWERS-Differentiation Focus
George is considering acquiring Alabama Woods. Like The North
Georgia Products SBU, Alabama Woods, sells lumber specifically
milled for barns and other farm related out buildings directly to its
customers through a company owned store in Muscle Shoals
(Alabama); near the Mississippi state line. Unlike North Georgia
products, Alabama woods also sell product through its robust
eCommerce website. George is considering buying Alabama Woods
,but running it as a separate SBU. The firm would not be consolidated
into a single SBU with North Georgia Products; instead, the Georgia
Lumber Company would be run as 3 SBUs with a corporate
"umbrella". Alabama Woods would continue to focus its physical
store on its Alabama customers while extending its eCommerce
capabilities to the Georgia Lumber Company to service North Georgia
Products retail customers. That said, the eCommerce capabilities are
not a driver nor is it an important p - ANSWERS-concentration
George has learned that National Timber is considering selling its
business to the highest bidder. National Timber is also family owned,
but the younger generation of the family has little interest in
continuing to run the business. Acquiring National Timber would not
only help secure a source of wood, but would also open up Georgia
Lumber Company to selling wood to other regional firms similar to
itself and Alabama Woods. George understands the risk associated
with the initiative and the likely high "price tag" for National Lumber,
but this initiative alone if successful, would exceed Otis Thomsan's
50% growth objective. This initiative, if approved by Mr. Thomson,
could best be described as a ________________ strategy.
- related diversification
- backward vertical integration
- forward vertical integration
- horizontal integration
- both b and a are correct
- both b and d are correct - ANSWERS-both b and a are correct
, Considering the two growth strategies suggested above -- the
Alabama Woods and the National Timber company -- which one
would be best described as an organic strategy?
- Alabama Woods
- National Timber
- Both are organic strategies
- neither are organic strategies - ANSWERS-neither are organic
strategies
Concluding the Georgia Lumber Company, George has been
approached by entrepreneur who has been successful in the business
of installing solar energy panels on the roofs of rural barns in the
North and Central Georgia farm belt. The entrepreneur has offered to
sell a controlling interest in his company to the Georgia Lumber
Company in exchange for cash and the opportunity to stay on and
continue to run the solar panel installation company. The company
would continue to be run autonomously as a subsidiary of the Georgia
Lumber Company and the Georgia Lumber Company would be
entitled to 80% of the company's profits. Although there would be no
synergies between the solar SBU and the other SBUs George still
likes the idea and believes that solar power could be a large growth
area for the firm. If the Georgia Lumber Company decided to pursue
this opportunity, this strategy would be best described as an example
of _________ - ANSWERS-unrelated diversification
Match the Industry Characteristics to the best Porter 5 Forces Model
Conclusion:
A Blue Ocean Strategy is a business level strategy that successfully
combines differentiation and cost leadership activities using value
innovation to reconcile the inherent trade-offs. - ANSWERS-True
George is the SVP of Strategy and Innovative Solutions for Georgia
Lumber Company, a family owned business that offers the "finest of
materials in Pine and Hardwood lumber". The firm is divided into two
SBUs (Strategic Business Units). One SBU, North Georgia Mills,
sells directly at wholesale prices to regional Building and
Construction firms as well as to Home Improvement stores like Home
Depot and Lowes. The other SBU, North Georgia Products, sells
directly to the public at three retail locations located in North and
Central Georgia. Lumber sold at these locations is specifically milled
for barns and other out buildings one might find on a farm or a ranch.
Although family owned, the business (Georgia Lumber Company)
employs over 300 employees and in its most recent year, generated
about $65 million in net revenues. The Georgia Lumber Company,
does not own its own forest or timber production facilities and sources
a - ANSWERS-Differentiation Focus
George is considering acquiring Alabama Woods. Like The North
Georgia Products SBU, Alabama Woods, sells lumber specifically
milled for barns and other farm related out buildings directly to its
customers through a company owned store in Muscle Shoals
(Alabama); near the Mississippi state line. Unlike North Georgia
products, Alabama woods also sell product through its robust
eCommerce website. George is considering buying Alabama Woods
,but running it as a separate SBU. The firm would not be consolidated
into a single SBU with North Georgia Products; instead, the Georgia
Lumber Company would be run as 3 SBUs with a corporate
"umbrella". Alabama Woods would continue to focus its physical
store on its Alabama customers while extending its eCommerce
capabilities to the Georgia Lumber Company to service North Georgia
Products retail customers. That said, the eCommerce capabilities are
not a driver nor is it an important p - ANSWERS-concentration
George has learned that National Timber is considering selling its
business to the highest bidder. National Timber is also family owned,
but the younger generation of the family has little interest in
continuing to run the business. Acquiring National Timber would not
only help secure a source of wood, but would also open up Georgia
Lumber Company to selling wood to other regional firms similar to
itself and Alabama Woods. George understands the risk associated
with the initiative and the likely high "price tag" for National Lumber,
but this initiative alone if successful, would exceed Otis Thomsan's
50% growth objective. This initiative, if approved by Mr. Thomson,
could best be described as a ________________ strategy.
- related diversification
- backward vertical integration
- forward vertical integration
- horizontal integration
- both b and a are correct
- both b and d are correct - ANSWERS-both b and a are correct
, Considering the two growth strategies suggested above -- the
Alabama Woods and the National Timber company -- which one
would be best described as an organic strategy?
- Alabama Woods
- National Timber
- Both are organic strategies
- neither are organic strategies - ANSWERS-neither are organic
strategies
Concluding the Georgia Lumber Company, George has been
approached by entrepreneur who has been successful in the business
of installing solar energy panels on the roofs of rural barns in the
North and Central Georgia farm belt. The entrepreneur has offered to
sell a controlling interest in his company to the Georgia Lumber
Company in exchange for cash and the opportunity to stay on and
continue to run the solar panel installation company. The company
would continue to be run autonomously as a subsidiary of the Georgia
Lumber Company and the Georgia Lumber Company would be
entitled to 80% of the company's profits. Although there would be no
synergies between the solar SBU and the other SBUs George still
likes the idea and believes that solar power could be a large growth
area for the firm. If the Georgia Lumber Company decided to pursue
this opportunity, this strategy would be best described as an example
of _________ - ANSWERS-unrelated diversification
Match the Industry Characteristics to the best Porter 5 Forces Model
Conclusion:
