Question

In: Operations Management

1. In 2007, Clorox Corporation, a company best known for its bleach and Hidden Valley Ranch...

1.

In 2007, Clorox Corporation, a company best known for its bleach and Hidden Valley Ranch salad dressing, acquired Burt’s Bees, a small North Carolina-based maker of lip balms and honey-infused creams and cosmetics for $925 million. The decision to acquire Burt’s Bees is best described as a(n) ___________________________.

Alliance

Greenfield investment

Corporate-level strategy decision

Vertical integration

Business-level strategy decision

2.

Identify a limitation of the Boston Consulting Group’s growth share matrix.

It is complex and difficult to understand

It fails to help executives make informed decisions about how to reinvest in the corporation

It is not based on quantifiable criteria

It fails to provide insight into whether a business unit will help the corporation exploit or expand a company’s resources and capabilities

It fails to help executives identify structurally attractive industries to invest in

3.

Which of the following is an important assumption underpinning Transaction Cost Economics?

People may be opportunistic

Resource immobility

Resource heterogeneity

Perfect rationality

All of the above are assumptions

Solutions

Expert Solution

1. The decision to acquire Burt Bee's is best described as an - ...... Corporate level strategy decision.....- Corporate level strategy decision include acquiring a business or selling a business when the company are dealing with more than one business type . They are different from business level strategies as business level strategy are about decisions related to individual business units.

2. Identify a limitation of the Boston Consulting Group's growth share matrix - ....it is not based on the quantifiable criteria....

- the products and business units are evaluated based on their product life cycle stage and comparative growth rate that are difficult to quantify.

3. Following is an important assumption underpinning Transaction Cost Economics - .... People may be opportunistic...

Transaction cost economics is based on the assumption of opportunism and bounded rationality. Any transaction with higher cost is internalised if its costs, frequency and uncertainty is higher.

keosha answered 1 day ago
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