Question 1

Harris Ranch, a cattle ranch and commercial feedlot operation located along Interstate Highway 5 in California, opened a restaurant to serve its high quality beef to travelers. This decision characterizes __________ integration.

Accepted Answer

Forward integration occurs when a company expands its activities to include control of the direct distribution or supply of its products, in this case, Harris Ranch moving into the restaurant business to serve its beef directly to consumers.

Question 2

The merger between America Online (AOL) and Time Warner was viewed by top management as a form of ______________ diversification.

Accepted Answer

Concentric diversification involves acquiring businesses that operate in related markets and offer complementary products or services. AOL and Time Warner were both media companies, so their merger was a form of concentric diversification.

Question 3

Warren Buffett's strategy with Berkshire Hathaway can be characterized as __________.

Accepted Answer

Warren Buffett's strategy with Berkshire Hathaway is best characterized as a conglomerate strategy. This approach involves the company owning a diverse range of businesses across various industries, rather than focusing on a single sector or market. Berkshire Hathaway owns companies in insurance, utilities, railroads, manufacturing, and retail, among others, making it a prime example of a conglomerate.

Question 4

Warren Buffett's unique success with Berkshire Hathaway is characterized by all of the following comments on the way he manages his operations except:

Accepted Answer

The answer of Warren Buffett's unique success with Berkshire Hathaway...

Question 5

How should planning should assist leaders and managers?

Accepted Answer

The answer of How should planning should assist leaders and...

Question 6

Describe three of the five common corporate-level growth strategies.

Accepted Answer

The answer of Describe three of the five common corporate-level...

Question 7

Describe the relationship of strategy to tactics, and the ways in which First American Corporation (FAC) implemented tactical plans related to their new "customer intimate" strategy.

Accepted Answer

The answer of Describe the relationship of strategy to tactics,...

Quiz 7: Planning and Strategy