1 Hewlett Packard and Compaq recently completed a merger The

1. Hewlett Packard and Compaq recently completed a merger. The combined firm is larger and thenefore carn negotiate lower prices from suppliers. This benefit of horizontal integration is called A. economies of scale. B, D. product bundling. E. market power. 2. Strategic outsourcing is best described as a A. means of getting rid of excess activities B. way of getting other companies to do what the outsourcing company no longer wants to do C. method of streamlining the marketing activities of a company. D. decision to allow one or more of a company\'s value chain activities to be performed by other companies E. none of the above. 3. New ventures are likely to be preferred compared to acquisitions when A. entry barriers are high B. exit barriers are high of products for related C. a company\'s business model is based on using its technology to innovate new kinds D. the company needs more mega-opportunities. E. the industry is in the mature stage of the industry life cyele s dressmaking shop and Kevin\'s fabric factory, the partners argue 4. In the joint veture between Stephanie\' to schedule tasks and reward workers Which of the following disadvantoges is Stephanie and Kevin\'s joint venture experiencing? A. Joint ven tures risk the loss of proprietary information to a partner. Joint venture partners must split the profits of the business. B. C. Joint venture partners D. Joint ventures are slower to reach profitability than are acquisitions E. Joint ventures require less up-front investment than do internal new ventures. must share control and decision-making power.

Solution

1. E

2. D

3. E

4.A

5. A

6.B

7. E

8. A

9. A

10. B

Part 2 -

1. Business strategy deals with the customers, market and market share, competition and company\'s actions to maximise the return on investment, whereas corporate strategy is all about taking strategic decisions at the top level to formulate the policies and take actions that give the business strategic direction.

Questions 2,3 and 4 require additional information.