According to the chapter, a key reason for pursuing forward, backward, and horizontal integration strategies is to gain what type of benefit?
Explanation
This question connects the different types of strategies discussed in the chapter, asking students to identify the primary strategic benefit (cost leadership) associated with integration strategies, as outlined by Porter's framework.
Other questions
Which of the following strategies is defined as seeking ownership or increased control over a firm's competitors?
Under what circumstance is a market penetration strategy considered especially effective?
What type of bankruptcy is a liquidation procedure used only when a corporation sees no hope of being able to operate successfully?
According to Michael Porter, which generic strategy is aimed at producing products and services considered unique industrywide and directed at consumers who are relatively price-insensitive?
Which of the following describes a merger?
What term refers to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms?
According to the Balanced Scorecard concept developed by Kaplan and Norton, 3M Corporation has a strategic objective to have at least what percentage of sales come from products introduced in the past four years?
Which of the following is NOT one of Porter's five generic strategies?
An unrelated diversification strategy is considered most effective under which of the following conditions?
What strategy occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits?
Which of Porter's strategies aims to offer products or services to a wide range of customers at the best price-value available on the market?
What was the initial annual capacity of the new Volkswagen plant built in Chattanooga, Tennessee, for the production of a midsize sedan?
What defensive strategy involves selling all of a company's assets, in parts, for their tangible worth?
Introducing present products or services into new geographic areas is known as which type of intensive strategy?
What is the term for a temporary partnership or consortium formed by two or more companies to capitalize on an opportunity?
What type of bankruptcy provides special relief to family farmers with debt equal to or less than 1.5 million dollars?
What is the term for a firm that agrees to acquire another firm when that other firm is facing a hostile takeover?
Which of the following is considered a risk of pursuing a differentiation strategy?
What is the primary reason stated for why U.S. companies often enter into alliances?
A leveraged buyout (LBO) is a strategy that results in which of the following outcomes?
Which of the following is NOT one of the four levels of strategies in large firms mentioned in the chapter?
In 2009, what was the approximate percentage of all mergers and acquisitions that were considered successful?
What is Business-process outsourcing (BPO)?
A best-value focus strategy, sometimes called 'focused differentiation', is categorized as which of Porter's strategy types?
When is horizontal integration considered an especially effective strategy?
Seeking increased sales by improving or modifying present products or services is the definition of which intensive strategy?
According to the chapter, what was the approximate value of the hostile takeover bid that Swiss drug company Roche Holding AG launched for Genentech Inc. in 2009?
Which of the following conditions would make a product development strategy particularly effective?
Adding new but related products or services is known as which type of strategy?
When Smithfield Foods closed 6 of its 40 plants and laid off 1,800 employees in 2009, this was an example of which defensive strategy?
In the context of turbulent, high-velocity markets, what is the ideal strategy that firms should strive for?
A key risk that a major unintended transfer of important skills or technology may occur at lower organizational levels is associated with which strategy?
Which of the following is NOT listed as a potential benefit of a firm being a first mover?
The chapter discusses four levels of strategies in large firms and three levels in small firms. Which level is present in large firms but not in small firms?
To reverse declining sales and profits, Starbucks in 2009 closed 300 underperforming stores worldwide. This action is an example of which defensive strategy?
What are the three components that Porter identifies as the bases for generic strategies to gain competitive advantage?
When is a backward integration strategy particularly effective?
A low-cost focus strategy is identified as which of Porter's five generic strategy types?
What is the primary characteristic of businesses referred to as 'Question Marks' in the BCG Matrix?
A hostile takeover occurs under what condition?
What is the core aim of the Balanced Scorecard as a strategy evaluation and control technique?
Tribune Company, owner of the Chicago Tribune and the Chicago Cubs, filed for which type of bankruptcy?
Why do most companies favor related diversification strategies over unrelated diversification?
What are the two axes on the BCG Matrix that determine a division's position?
In 2009, Under Armour pursued a related diversification strategy by introducing what new product line for the first time?
Which of these is NOT one of the reasons listed for why firms are choosing to outsource their functional operations?
What is the key difference cited between how U.S. firms and Asian/European firms approach cooperative agreements?
In the BCG Matrix, divisions with a high relative market share in a low-growth industry are known as what?
What was the total value of the acquisition of Mentor Corporation by Johnson and Johnson as mentioned in the chapter?