Case Activity: Chapter $06$: Organizational Strategy

When formulating strategy, Theo Chocolate's managers scan the business environment for factors that will or could impact the company's competitive advantage. Which of the following would pose a threat to Theo? Check all that apply.

Theo Chocolate employees attempt to form a union, seeking better pay and benefits.

Unlike other chocolate brands, Theo sources their cacao beans directly from farmers in Peru and the Democratic Republic of Congo, incurring greater costs than competitors who purchase from suppliers.

Joe Whinney, hires world$-$renowned chocolatier, Jacques Torres, who develops a line of chocolate bars that customers hate and a prominent food blogger features in a post as "Chocolate Fails."

The USDA releases a report about the potential link between chocolate and cancer.

Seattle, home to Theo Chocolate, experiences around $155$ days of rain per year. CEO of Theo, Joe Whinney, recently purchased a umbrella company which will produce umbrellas in various colors and sizes. This is an example of:

Differentiation

Vertical integration

Unrelated diversification