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after reading the assigned textbook chapter, one student per team will answer a set of chapter-related questions (listed on CC) based on an imaginary business using a random word generator (https://wordcounter.net/random-word-generator; generate 3 words and be creative). Importantly, exhibit critical thinking. (No need to summarize the chapter.) Format: about 2-3 pages long, 1” margins, Times New Roman 12 point font, 1.5 line spacing, with page numbers.
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So pretty much makeup company based on 3 randomly generated words
Answer following questions
Chapter 8 – Corporate-level Strategies
· Assume that you operate only in a single industry, describe what does your firm do; what is your MAIN product or service? ; be sure to explain its position on the product value chain (i.e., is in manufacturing, wholesale, retail, etc.).
· Hypothetically, how can you vertically integrate backward and forward (if possible)? What can be the benefits?
· Why, more than likely, this vertical integration won’t be a good idea?
· How can you do a related diversification? Into which industry should you be entering? What’s “related” here, what core competencies will you be using, what resources will you be sharing?
Note the difference between related = transferring knowledge and/or sharing resources (e.g., motorcycles and lawnmowers), and complementary = go together (e.g., cars and gas stations).
· Run the three tests for diversification for this diversification venture? (Perform these tests for the new industry you are planning to go into, not your existing industry! ; Note: 1st test = do quick Porter’s 5 forces; test 2 = costs specifically to your company, not in general; test 3 = ongoing benefit.)
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