SGMT 3000 Chapter Notes - Chapter 9: Federal Trade Commission, Quasi, Horizontal Integration

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: T B A

Document Summary

Role of managers: think long-term; consider how changes in industry, product, technology, customers and competitors will affect firm"s current business model and future strategies; decide. Chapter 9 corporate-level strategy: horizontal integration, vertical integration, and strategic. Multi-business model: business model for entry into new businesses or industries; explain how and why entering a new industry will increase overall profitability using existing competencies and strategies. Acquisition: company uses capital (stock, debt, cash) to purchase another company. Merger: agreement between equals to pool their operations and create a new entity. Benefits: lowers cost structure; increases product differentiation; leverages competitive advantage more broadly; reduces industry rivalry; increases company bargaining power. Corporate-level strategy: allows managers to anticipate future trends; managers can change business models towards a changing environment. Product bundling: customers given opportunity to purchase multiple products for a single combined price; increases value of product line since price discounts are realized; customers grow accustomed to transacting with only one company; source of competitive advantage.