1. Considering the previous question, outline at least two limitations or risks that must be considered when using the BCG Matrix to drive strategic decision making.

2. Define horizontal integration and provide a successful or unsuccessful example.

3. Using the characteristics of the appropriate Industry Life Cycle phase or phases in the attached article, describe what effect the introduction of the iPod and iTunes had on the dominant MP3 portable music player industry life cycle (made by Sony and other electronics manufacturers) at the time they were introduced. How did the introduction change the dynamics and/or the requirements for success of the particular life cycle phase the industry was in at the time of the iPod introduction)

4.

You are on the analysis and acquisition team for a large corporation which is a leader in the commercial airplane manufacturing sector. Specifically, your company provides instrumentation and electronics that assist in the control and guidance of aircraft. Based on your strategic plan your firm has identified an industry shift to airframe manufacturers preferring to work with fewer subcontractors who can supply a larger number of airframe assemblies. As a result your firm is considering expanding their capability in this industry by acquiring smaller companies which are also in this industry and if acquired, would likely benefit from your corporate resources and capabilities. You have been tasked to analyze the desirability of acquiring a specific firm that specializes in designing and installing plane interiors, (seats, bulkheads, storage compartments, galleys, restrooms, etc.). Though the firm is not directly in your industry market sub-segment, your management team believes that adding this firm to their business portfolio could increase the companys value in the broader airline manufacturing segment, particularly given the emerging preferences of airframe manufacturers. Your manager has asked you what your plan is for the analysis. Specifically, what strategic analysis tools would you use to analyze the acquisitions potential benefit to your firms business; how its product lines and overall business would compare with your firms existing businesses; and what the likelihood would be that your firms current resources and capabilities would provide an advantage (or disadvantage) for the firm that is being acquired and its specific capabilities? The analysis and acquisition teams have already determined a preliminary price for the acquisition, though it is by no means firm, and they are concerned that they not pay too much to acquire the firm so you must quantitatively establish the acquisition targets estimated value so your management team can confidently negotiate an appropriate final price offer for the target firm.

The following key questions must be answered by the analysis tools you select.

1. What needed new resources and capabilities can this firm bring to the parent corporation, what resource gaps, if any will this acquisition fill, and how will these resources and capabilities improve the core competencies and therefore competitive advantage of the parent firm? ^{[5 [10]}
2. What kind of product line synergies or conflicts might arise from this acquisition? ^{[5] [10]}
3. How will you quantitatively assess the value of the firm being acquired, and how will you determine if the new combined firms value increases or decreases as a result of the acquisition? ^{[5] [10]}

Describe the analysis tools you would use to answer these three questions and what information you would expect to derive from each tools use in order to answer the questions above.

5. Outline and discuss the four underlying key concepts that help executives make corporate strategic decisions about where to compete and how to compete?