Question

25

Corporate strategy is more likely to lead to competitive advantage the more unrelated the business are that are part of the corporation

T or F

30.

Strategic group are firm s within an industry that are cooperating to avoid competition

T or F

36

“Stuck in the middle” refers to any firm that has not made tradeoffs to commit sufficiently to one strategy or another

T or F

40

Vertical integration is about acquiring buyers and suppliers: diversification is about acquiring any firm that is not a buyer or supplier

T or F

42

Firms should avoid industries with a poor industry structure because the firm will also suffer from lower than average profitability.

T or F

Answer 1

25- Corporate strategy is more likely to lead to competitive advantage the more unrelated the business are that are part of the corporation

False

Explanation- Corporate strategy is essential for maintaining balance between the organisation and its development for the competitive advantage rather than just focusing on the current relative advantages.

30.Strategic group are firm s within an industry that are cooperating to avoid competition.

False

Explanation- strategic groups are combination of multiple go in a similar segment for reducing tactic clashes but they are highly competitive in their specific segment.

36 “Stuck in the middle” refers to any firm that has not made tradeoffs to commit sufficiently to one strategy or another

True

Explanation- stuck in the middle can be described as a position where an organisation fail to effectively implement one of the strategies.

40 Vertical integration is about acquiring buyers and suppliers: diversification is about acquiring any firm that is not a buyer or supplier

False

Explanation- vertical integration requires other company that is being acquired to be working in the same industry and could be the buyer or a supplier.

42. Firms should avoid industries with a poor industry structure because the firm will also suffer from lower than average profitability.

False.

Explanation- each and every form have different operating structure and the profitability totally depends on the operating structure of the specific company which can change the basic structure of the industry as well.