13. A computer technology company is considering developing a computer hardware repair business as a result of its core competencies in the area. Before proceeding, the company must provide reasoning for how its competencies will help it enter the new computer repair market and how it will increase profitability as a result. This is referred to as developing a:

a.scenario plan.

b. multibusiness strategy.

c. business strategy.

d. multibusiness model.

14. What is an advantage of long-term relationships over short-term contracts between companies?

a.Companies are not limited by partnerships very long before being able to move on to the next one.

b. Companies can be more competitive in what suppliers they work with because they are not obligated to any supplier for a long period of time.

c. Long-term relationships show commitment to a company's suppliers so that the company can realize differentiation and cost advantages through specialized investments.

d. Companies are limited by their partnerships from forming new relationships with companies because of their long-term contracts.

15. Strategic alliances seek to obtain the same benefits found through vertical integration. What is the difference between strategic alliances and vertical integration?

a.Vertical integration seeks to either own the companies that participate in each stage of production or operate completely separately from stage to stage, while strategic alliances work together with companies throughout stages of production.

b. Strategic alliances seek to either own the companies that participate in each stage of production or operate completely separately from stage to stage, while in vertical integration, companies work together throughout stages of production.

c. Strategic alliances coordinate between companies, while vertical integration allows companies to work together.

d. Strategic alliances and vertical integration are the same.

16. A popular craft brewery just merged with a former competitor. The strategy behind their merger seeks to gain a larger market share as one company and take advantage of both brands' previous competitive advantage. This is an example of:

a.latitudinal integration.

b. vertical integration.

c. horizontal integration.

d. longitudinal integration.

17. Strategic outsourcing:

a.occurs when companies pursue extensive strategic outsourcing to the extent that they only perform the central value creation functions that lead to competitive advantage.

b. is the decision to allow one or more of a company's value-chain activities or functions to be performed by independent specialist companies that focus all of their skills and knowledge on just one kind of activity.

c. occurs when an independent component supplier runs the risk that its alliance partner might become inefficient over time, resulting in higher component costs or lower quality.

d. occurs when a company enters into long-term contracts with at least two suppliers for the same component to prevent any problems of opportunism.

18. A company that packages and distributes fruit for on-the-go lunches has established a differentiation. Its fruits are packaged in such a way that refrigeration is unnecessary, and the fruit will not wilt or discolor. The chain starts when the manufacturer purchases fresh fruit from organically grown farms. Then, the fruit is skinned and cut into convenient squares for on-the-go eating. Then, the fruit arrives at the plant for packaging and distribution to grocery stores across the country. This is an example of:

a.forward integration.

b. value creation activities.

c. added value.

d. backward integration.