BSM600 lecture 6

Which is not a part to create value

• front-end

• back-end

• left-end

• right-end

backward vertical integration

• movement in raw materials

• movement unrelated to value chain

• movement in sales and operation

Horizontal diversification meaning

• movement in sales, operation

• movement in customer segment

• movement in geographic location and market

• movement unrelated to value chain

which of the following defines the word

HUBRIS?

• poor management

• overestimate

• overconfident

• investment must continue even it fails

Which of the follwoing defines sunk cost fallacy

• hard to diversify, because rival diversified first

• investment must continue even fail, because already invested

• poor governance and incentives

• lack of cost to produce product

which of the following is not a way that destroys value through diversification?

• Hubris

• sunk cost fallacy

• staying ahead of technology

• lack of resouces

• poor governance and incentives

which of the following does not belong to the 4bs?

• Bury

• Build

• Blend

• Buy

• Bolt on

What is the meaning of

SYNERGY?

• use simliar models for succes

• 2 companies merge creates more value than seperate

• knowledge is shared between companies

• 2 companies in the same industry and produces similar products

which 4B means completely absorbing the target?

Which of the 4Bs has the meaning of sharing some practices/processes between companies?

• Blend

• Build

• Bolt on

• Bury