GMS 200 Lecture Notes - Horizontal Integration

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Week 11 GMS Lecture notes
Final exam
Total time: 120 minutes
Number of questions: 120
Chapters 1,4,5,7 30 questions
Chapters 2,6,8,9,10,13 90 questions
April 27, 12 PM at MTCC
Business level strategies
Two generic strategies:
1.Cost Leadership
a.Timex
b.BiC
2.Differentiation
a.Rolex
Corporate level strategies (important for exam)
Many types, but here we have divided them into three:
1. Integrative strategies
a.Gaining ownership of increased control over distributors or retailers (forward
integration)
i.McDonalds and other fast food chains
1.Owns 23% of its 32,000 restaurants worldwide
ii.Boise Cascade
1.Forest products firm
2.Owns 2.3 million acres of timber-lands
3.Distributes the Cascade line of products to Office Depot,
Staples, and OfficeMax (office furniture)
4.Recently acquired OfficeMax (drawback their customers are
now their competitors, so now their reach has been limited to
OfficeMax
b.Seeking ownership or control of a firms suppliers (backward integration)
i.Arcelor Mittal UK based, largest steel company in the world
1.Presence in 60 countries
2.Own 47% of iron ore mines (removing the mark up from the
mines to the steel products, ensures their supply, huge barrier
to entry competitors will have to pay premium)
3. Intends to increase it to 75%
www.notesolution.com
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Document Summary

Two generic strategies: cost leadership, timex, bic, differentiation, rolex. Many types, but here we have divided them into three: Staples, and officemax (office furniture: recently acquired officemax (drawback their customers are now their competitors, so now their reach has been limited to. 3. www. notesolution. com: strategy of seeking ownership of or increased control over a firm"s competitors. Mergers, acquisitions, and takeovers among competitors (horizontal integration: oracle / sun microsystems ii. Ibm acquired cognos (cognos had canadian markets which ibm wanted to tap into) Intensive strategies: market penetration strategy seeks to increase market share for present products and services in present markets through greater marketing efforts. I t includes increasing the number of salespersons, advertising expenditures, and sales promotions: market development strategy introducing present products or services into new geographic areas. General motors and ford have greater revenue and profits from businesses outside the us.

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