Page 143 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 7: Corporate Level Strategies

7.9 Self Assessment Notes

Fill in the blanks:
1. The customer ................... defines the value proposition that the organisation will apply to
satisfy customers.
2. The ................... focuses on all the activities and key processes required in order for the
company to excel at providing the value expected by the customers.

3. The ................... and ................... is the foundation of any strategy and focuses on the intangible
assets of an organisation.
4. ................... strategy implies continuing the current activities of the firm without any
significant change in direction.
5. A ................... strategy is a decision to do nothing new.
6. ................... strategies are the most widely pursued corporate strategies.

7. ................... seeks to increase market share for existing products in the existing markets.
8. Market ................... seeks to increase market share by selling the present products in new
markets.

9. ................... seeks to increase the market share by developing new or improved products
for present markets.
10. ................... increases the dependability of the supply and quality of raw materials.

11. ................... involves gaining ownership or increased control over distributors or retailers.
12. ................... is the process of adding new businesses to the existing businesses of the company.
13. By expanding into ..................., the company can obtain new technologies and products,
which can complement its present businesses.
14. Competition as a reason of corporate ................... occurs in the form of product and/or
price competition.

7.10 Review Questions

1. If a firm succeeds in making the customers to switch from the competitor's brands to the
firm's brands, while maintaining its existing customers intact, there will be an increase in
the firm's sales. Why/why not?
2. Explain the concept of product development. Under what conditions, do you think it is
feasible?
3. As a manager, in which situations would you apply vertical integration and why?
4. "Horizontal integration eliminates or reduces competition". Comment
5. Discuss the concept of last resort strategies. Under what conditions should they be applied?
6. "A firm is sick!" What do you mean by this statement? How can you prevent this sickness?

7. Do you think that the turnaround process is difficult? Why/why not?
8. Suppose you are the business head of a firm which is in deep financial trouble and is losing
customers because of lack of proper services. In such a situation, what will you do and how
would you justify your actions?

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