17 Questions
What does vertical integration involve for a company?
Expanding its operations towards the customer
Which company in the text has engaged in vertical integration in the power sector?
Aboitiz Power Corporation
What is the primary benefit of strategic alliances between companies as mentioned in the text?
Enhancing market position while remaining independent
How does diversification benefit a company as described in the text?
Stabilizes revenue streams and reduces risk vulnerability
What does forward integration involve for a company's supply chain?
Expanding towards the customer
Which company mentioned in the text has diversified into food, beverages, infrastructure, and telecommunications?
'San Miguel Corporation'
Which of the following is NOT a support activity in the value chain?
Marketing
What is the primary goal of Value Chain Analysis?
To identify activities where the firm can create more value for customers or reduce costs
Which of the following is an example of a technology development activity?
Research and Development (R&D)
How can a company achieve a cost advantage, according to the text?
By controlling costs and expenses throughout the value chain
What is the role of firm infrastructure in the value chain?
To support the entire value chain through activities like finance and planning
What is a source of competitive advantage for a firm?
The way a firm organizes and performs its value chain activities relative to its competitors
What is the primary difference between a merger and an acquisition?
In a merger, two companies combine to form a new company, while in an acquisition, one company purchases another company.
Which of the following is NOT a common goal of corporate restructuring?
Reducing the number of employees
What strategic shift did Ayala Corporation undergo to remain competitive?
Ayala Corporation focused on high-growth sectors such as real estate, banking, telecommunications, and water utilities.
Which of the following best describes the impact of the merger between PLDT and Digitel in the Philippines?
The merger strengthened PLDT's market position, significantly altering the telecommunications landscape.
Which of the following is NOT a common type of corporate restructuring?
Expanding the company's product line
Learn about the concepts of business diversification and vertical integration. Explore how diversification can stabilize revenue streams and reduce vulnerability to industry-specific risks, and understand how vertical integration expands operations within the supply chain.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
