Question

Verizon develops and deploys low-altitude telecommunications systems. this is an example of . when a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of . pretend that you own a small coffee shop. you have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring a coffee cup manufacturer across town. this is an example of . managers often consider a strategy when deciding whether diversification is the right approach for their company.

Answer 1

The correct answer is related diversification. related diversification refers to the company which purchases another company, which is related to what the purchasing company is already doing. In this situation, Verizon is develops and deploys low-altitude telecommunication systems, wherein Verizon is the purchasing company wherein it purchases another company that plays the same role as Verizon already does.

When a business owner of a coffee shop decides to purchase a a coffee cup manufacturer, he or she is using the strategy of Vertical Integration. Vertical Integration refers to the strategy wherein a company or group of people purchases a customer or a supplier for his or her own company use.

Answer 2

1. I believe the answer is: related diversification.

Related diversification refers to the every efforts that company do to expand their consumer base from the market that they are currently in. This could be done by either developing a new product, or by acquiring another companies that operate in different market.

2. I believe the answer is: Vertical integration

Vertigal integration refers to a join operation made by parent companies and its subsidiaries, to combine specific aspect of operation in order to produce one same products or services. This strategy is preferred by companies who want to ensure the supply of materials for their product without having to be depended on other companies.

3. I believe the answer is: Related diversification

Related diversification refers to the efforts that companies do to expand their operations that being done by obtaining different companies that is different from the current one, but still closely related with one another. (in the example above, both companies still target the coffee market.)

4. I believe the answer is: Portofolio Strategy

Portofolio strategy is the strategy that being done by separating their investments in order to obtain their financial goals. This strategy is being done to minimize the risk of investments (if the investments are separated/diversified, the investors would not go bankrupt if one of the investment is failing)