Assignment:
Match the following terms with their descriptions.
1. A concept in business-level competitive strategy that recognizes that profit margins are higher for some steps (stages, segments) than for others in the supply chain between raw material and final consumption.
2. A potential source of cost reduction in a horizontal acquisition (consolidation merger), it arises from being able to efficiently utilize larger, faster production equipment as well as the bargaining power associated with purchasing larger quantities of raw materials to reduce the cost per unit.
3. A cost advantage usually associated with a corporate strategy of strategically related diversification, it arises from being able to share technology, knowledge, or specialized resources across business units instead of each business having to bear the full cost of independently acquiring the resource or capability.
4. A business-level scope strategy where increasing the sales volume of a product depends on stealing market share from competitors. This term refers to a host of benefits that a business derives from being a component part of a corporate portfolio instead of an independent entity; it includes things like access to corporate financial resources, corporate services like human resources, and access to the expertise of senior executives.
5. A business-level scope strategy where increasing the sales volume of a product depends on increasing overall demand.
6. Actions undertaken by corporate headquarters to change the assets, capital, and/or management of a business unit.
A. Economies of scale
B. Market Development
C. Economies of Scope
D. Profit Pool
E. Parenting Advantage
F. Restructuring
G. Market Penetration