Corporate Level Strategy Quiz

What is vertical integration in corporate level strategy?

• Expansion into different stages of the production process

• Focusing only on one stage of the production process

• Diversification into unrelated industries

• Outsourcing all production processes

Explain the difference between backward and forward vertical integration.

• Backward vertical integration involves integrating with customers, while forward vertical integration involves integrating with suppliers.

• Backward vertical integration involves integrating with competitors, while forward vertical integration involves integrating with government agencies.

• Backward vertical integration involves integrating with suppliers, while forward vertical integration involves integrating with distributors or retailers.

• Backward vertical integration involves integrating with shareholders, while forward vertical integration involves integrating with employees.

What is diversification and how does it benefit a company?

• Diversification has no impact on a company's risk or growth opportunities.

• Diversification benefits a company by increasing risk and reducing opportunities for growth.

• Diversification benefits a company by reducing growth opportunities and increasing risk.

• Diversification benefits a company by reducing risk and increasing opportunities for growth.

What is the main goal of an acquisition strategy in corporate level strategy?

• To downsize the company and reduce operations

• To maintain the current business size and not expand

• To focus on internal development and not acquire other companies

• To acquire other companies and expand the business

When would a company consider using a divestiture strategy?

• To increase financial risk and diversify operations

• To improve financial position or focus on core operations

• To reduce market share and focus on non-core operations

• To improve employee morale and increase operational costs