1. Amazon

Amazon was founded by Jeff Bezos in Bellevue, Washington, in July 1994. The company initially started as an online marketplace for books but later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewellery. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalisation. In 2017, Amazon acquired the Whole Foods Market for US$13.4 billion, which vastly increased Amazon's presence as a brick-and-mortar retailer. Nowadays Amazon is the largest Internet company by revenue in the world.

Evaluating Amazons strategy one can see that Amazon creates its competitive advantage by disrupting well-established industries through technological innovation. Amazons rationale is to be the world's largest online marketplace, AI assistant provider, and cloud computing platform as measured by revenue and market capitalisation. Amazon achieves this by combining economies of scale with its inbound logistics, the deployment of technology to automate orders, and a fast and efficient outbound logistics, along with fast adaptation of its business model. Despite scandals Amazon meets expectations of its stakeholders, as it is the second largest private employer in the United States and one of the world's most valuable companies. Amazon also received positive reactions from its stakeholders during the Coronavirus pandemic, as it managed to grow and improve its services by hiring people who lost jobs in other industries. Unlike other companies, Amazons growth strategy works because they were able to obtain resources during the Coronavirus pandemic.

In evaluating this strategy using SAF, all of the above elements would be considered under which criteria? (choose ONE answer)

Suitability, acceptability and feasibility.

Suitability and acceptability, but not feasibility.

Acceptability and feasibility, but not suitability.

Suitability and feasibility, but not acceptability.

2.

Nestl

Nestl S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It was founded by a German-born pharmacist, Henri Nestl in 1866. Their first product, an infant cereal for mothers who couldnt breast-feed, combined cows milk, wheat flour and sugar, was a quick success.

The company expanded within the food business by merging with their rival, a known food processing company called Anglo-Swiss Condensed Milk in 1905. The merger provided the company with more resources and capital to expand their products, and they later added chocolate to their brand. Over the years, the company continued with similar strategies and acquired several businesses including canned, frozen food, bottled water and pet foods. It has become the largest food company in the world, measured by revenues and other metrics, since 2014.

Which of the following strategies best describe what Nestle did over the years? (choose TWO answers)

Horizontal integration since it acquired direct or non-competitors most of the time.

Unrelated diversification since it acquired new business units that were not related to its core business. These allowed Nestle to increase its portfolio of resources and allowed them to expand into new markets.

Market penetration since it tried to increase the revenues from its existing business units within its existing markets.

Profit Strategy in order to reduce costs, future development and increase immediate profits.

Related diversification since it acquired new business units that were related to its core business.

3.

General Electric Company (GE)

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. It was created originally by Thomas Edison in 1889. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance and lighting. In 2018, GE ranked among the Fortune 500 as the 18th-largest firm in the U.S. by gross revenue.

Though many years of deploying various corporate strategies, GE managed to create a gigantic company that seems to be vertically and horizontally integrated, having conducted market penetration, market development and various diversification moves. Its corporate strategic rationale has changed over the years entering and leaving certain markets as well as creating and closing certain Strategic Business Units (SBUs) affecting the corporate budget for all others. Part of this success was based on creating certain support and mutual benefits across its business units through its corporate strategic approach.

According to your knowledge of corporate strategy and the above text, which of the statements below best describe corporate strategy? (Choose TWO answers)

Corporate strategy deals with the ability of a corporation to create a synergy effect across its SBUs (Strategic Business Units).

Corporate strategy deals with the ability of a corporation to create or acquire new SBUs (Strategic Business Units).

Corporate strategy deals with deciding on how each business unit should develop a competitive advantage in its market.

Corporate strategy comes from every level of decision making and is not necessarily connected to the broader vision of the companys managing director.

Corporate strategy deals with making decisions on low cost and differentiation approaches.