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Imagine that after Annie's, a company that makes organc foods, had a very successful IPO, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certifled organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/) Consider the strategic decision described in the following paragraph and use your knowledge of how a firm chooses business- and corporate-level strategies to complete the paragraph and answer the question that follows. Seattle-based Theo Chocolate makes organic and fair-trade chocolate bars. Its management team includes Joe Whinney, the company's founder and CEO, and Debra Music, vice president of sales and marketing. Suppose that Joe and Debra were deciding on a pricing strategy just for their company's chocolate bars. This would be a corporate-level v strategic decision. To make this decision, Joe and Debra would have to take which of the following actions? Check all that apply. Determine what kind of industries Theo Chocolate should be in. O Evaluate the intensity of competition and competitors' pricing of candies. O Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. OChoose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

Imagine that after Annie's, a company that makes organc foods, had a very successful IPO, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certifled organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/) Consider the strategic decision described in the following paragraph and use your knowledge of how a firm chooses business- and corporate-level strategies to complete the paragraph and answer the question that follows. Seattle-based Theo Chocolate makes organic and fair-trade chocolate bars. Its management team includes Joe Whinney, the company's founder and CEO, and Debra Music, vice president of sales and marketing. Suppose that Joe and Debra were deciding on a pricing strategy just for their company's chocolate bars. This would be a corporate-level v strategic decision. To make this decision, Joe and Debra would have to take which of the following actions? Check all that apply. Determine what kind of industries Theo Chocolate should be in. O Evaluate the intensity of competition and competitors' pricing of candies. O Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. OChoose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When developing its strategy, an organization may need to assess its position at both the business level and the corporate level. A company's business-level strategy focuses on how the firm will compete within a particular line of business. By comparison, the corporate-level strategy considers which industries the company should participate in and how resources will be allocated across those different lines of business. Determine whether the company activities in the following table are examples of business-level or corporate-level strategies. Business- Level Corporate- Level Company Activity Strategy Strategy After first denying that a split was being contemplated, eBay announced that it would spin off its very successful PayPal division, which has now become a separate company. The motivation for the spinoff was for PayPal to fulfill its potential in the booming online payment industry while eBay continues to focus on the online auction business. (Source: Bertoni, S. (2014, September 30). Ebay and PayPal to split: Carl Icahn and Elon Musk wish comes true. Forbes. Retrieved from http://www.forbes.com/sites/stevenbertoni/2014/09/30/ebay-and-paypal-to-split-carl-icahn- and-elon-musk-wish-comes-true/) Imagine that senior managers in the Post-it Note division at 3M determine that regardless of how 3M positions its other products, Post-it Notes will continue to be sold at a premium price. The company will also continue to develop new Post-it products to attract new buyers. Imagine that after Annie's, a company that makes organic foods, had a very successful IPo, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certified organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us business/t/0oogle-buys youtube-billion/)
Transcribed Image Text:When developing its strategy, an organization may need to assess its position at both the business level and the corporate level. A company's business-level strategy focuses on how the firm will compete within a particular line of business. By comparison, the corporate-level strategy considers which industries the company should participate in and how resources will be allocated across those different lines of business. Determine whether the company activities in the following table are examples of business-level or corporate-level strategies. Business- Level Corporate- Level Company Activity Strategy Strategy After first denying that a split was being contemplated, eBay announced that it would spin off its very successful PayPal division, which has now become a separate company. The motivation for the spinoff was for PayPal to fulfill its potential in the booming online payment industry while eBay continues to focus on the online auction business. (Source: Bertoni, S. (2014, September 30). Ebay and PayPal to split: Carl Icahn and Elon Musk wish comes true. Forbes. Retrieved from http://www.forbes.com/sites/stevenbertoni/2014/09/30/ebay-and-paypal-to-split-carl-icahn- and-elon-musk-wish-comes-true/) Imagine that senior managers in the Post-it Note division at 3M determine that regardless of how 3M positions its other products, Post-it Notes will continue to be sold at a premium price. The company will also continue to develop new Post-it products to attract new buyers. Imagine that after Annie's, a company that makes organic foods, had a very successful IPo, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certified organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us business/t/0oogle-buys youtube-billion/)
price. The company will also continue to develop new Post-it products to attract new buyers. Imagine that after Annie's, a company that makes organic foods, had a very successful IPO, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certified organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The WalI Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/) Consider the strategic decision described in the following paragraph and use your knowledge of how a firm chooses business- and corporate-level strategies to complete the paragraph and answer the question that follows. Seattle-based Theo Chocolate makes organic and fair-trade chocolate bars. Its management team includes Joe Whinney, the company's founder and CEO, and Debra Music, vice president of sales and marketing. Suppose that Joe and Debra were deciding on a pricing strategy just for their company's chocolate bars. This would be a corporate-level v strategic decision. To make this decision, Joe and Debra would have to take which of the following actions? Check all that apply. O Determine what kind of industries Theo Chocolate should be in. OEvaluate the intensity of competition and competitors' pricing of candies. O Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.
Transcribed Image Text:price. The company will also continue to develop new Post-it products to attract new buyers. Imagine that after Annie's, a company that makes organic foods, had a very successful IPO, its managers met to consider the best way for the company to position its products and decided on a focus strategy, targeting sales at people who prefer to consume food with certified organic ingredients. (Source: Cowan, L. (2012, March 28). Hot debut: Annie's IPO jumps 89%. The WalI Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052702303404704577309534266590926) Google acquired YouTube in 2006. Imagine that Google managers ask, "Should we sell off YouTube to refocus our product portfolio?" (Source: Associated Press. (2006, October 10). Google buys YouTube for $1.65 billion. Retrieved from http://www.nbcnews.com/id/15196982/ns/business-us_business/t/google-buys-youtube-billion/) Consider the strategic decision described in the following paragraph and use your knowledge of how a firm chooses business- and corporate-level strategies to complete the paragraph and answer the question that follows. Seattle-based Theo Chocolate makes organic and fair-trade chocolate bars. Its management team includes Joe Whinney, the company's founder and CEO, and Debra Music, vice president of sales and marketing. Suppose that Joe and Debra were deciding on a pricing strategy just for their company's chocolate bars. This would be a corporate-level v strategic decision. To make this decision, Joe and Debra would have to take which of the following actions? Check all that apply. O Determine what kind of industries Theo Chocolate should be in. OEvaluate the intensity of competition and competitors' pricing of candies. O Evaluate what resources the company has to devote to manufacturing and selling chocolate bars. Choose one of three approaches for selling chocolate bars: low-cost, differentiation, or focus.
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