Reference no: EM133573413

Question 1:Business-Level Strategy

• You should be able to:
• Distinguish between business-level and corporate-level strategies. Define Each.
• Explain the three questions that need to be addressed in formulating business-level strategy. (who-what-how)
• Name and discuss the five majorPorter's generic business-level strategies. Know what makes them effective when companies implement either one in their firms.
• Identify and discusswhat specific value-creating activities in the value chainare highlighted in Cost leadership and differentiation strategies.
• Discuss the major competitive risks in adoptingeach of the generic business-level strategies
• How does adopting an integrated cost leadership/differentiation strategyhelp companies?

Question 2: Corporate-Level Strategy

• You should be able to:
• Define a corporate-level strategy and why itis important.
• Understand the two dimensions (i.e., operational relatedness and corporate relatedness) of all corporate-level strategies.
• Discuss productdiversification strategy. Why is it theprimary form of corporate-level strategy?
• Know the meaning of economies of scope, financial economies, and market power
• Explain the difference between backward and forward acquisitions.
• Explain the three different levelsof diversification (i.e., low, moderate to high, and very high levels).Give example.
• Explain the conceptsof multimarket (multipoint) competition.
• Discuss the meaning,pros, and cons of vertical integration strategy.
• Identify and discuss major incentives firmshave for pursuingproduct diversification strategy.
• Know the meaning of stuck in the middle
• How would you characterize the relationship between the level of productdiversification and firm performance? Linear vs. curvilinear? Explain. Which corporate-level strategy is related to the highest performance level?
• Know the meaning of a conglomerate and know some examples of conglomerates.

Question 3: Mergers and Acquisition Strategies

• You should be able to:
• distinguish among mergers,acquisitions, leverage buyouts, and hostiletakeovers
• discuss the 7 majorreasons why firms pursue an acquisition strategy
• explain the difference between vertical and horizontal acquisitions.
• explain why most acquisitions fail to create value for shareholders. What are some of the difficulties?
• identify and discussthe three major types of restructuring activities (i.e., downsizing, downscoping, and leveraged buyouts-LBO).
• Know the types of downscoping (i.e., spinoffs and divestitures).
• Define and understand synergy
• what are some possible dysfunctional outcomes of corporatedownsizing?