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Carter Co. is lowering its production of golf balls to focus more on golf clubs. They also announced they are laying off roughly 15% of their labor force. Based on what you know about corporate strategies, what do you conclude?

Starbucks acquired competitor Seattle’s Best Coffee, which had a presence in Borders Bookstores and Subway Restaurants, in order to target a more working-class audience without diluting the Starbucks brand. Starbucks’ acquisition is a good example of __________.

John, the owner of a tire manufacturing company, operates in the state of Arizona. After meeting with his team of executives, John decides that the company has significant resources that are not being used (mainly capital) and that the best way to use them is to diversify the company. As a result, John’s company opens a new location in Nevada and begins selling tires in that state, too. Additionally, John’s company acquires another company, Company X. Company X has locations in Nevada and Arizona and specializes in installing tires on a wide range of vehicles. Which of the following types of diversification does John’s company implement?

Gilly is the newest executive of a shoe company based in the northeast. In order to compete with elite brands such as Nike and Adidas, Gilly adopts a new cost leadership strategy. What remains critical for Gilly’s operational proposal to succeed?

A popular restaurant operates in a busy area of town. The drinks and happy hour specials are cheaper than any other restaurant in the area. The owners of the bar have trouble keeping prices low, as rent in the area seems to increase. They need to keep prices low to bring in customers, but increasing expenses reduce profit. This is a common disadvantage of ______________.

You work for a major oil exploration and production company; they specialize in finding and drilling for crude oil to be sold to refineries. Over the past few years fluctuations in oil prices have caused revenues to be extremely volatile, with low or negative profits during times of low oil prices. They purchased an oil refinery company that tends to perform better during times of low oil prices. What is the most likely outcome for this company after purchasing the refinery?

ALDI operates under a broad cost leadership strategy. Which of the following is NOT a disadvantage of ALDI’s cost leadership strategy?

Victoria’s Secret decided to close their stores in March due to the global pandemic and reopen in June; however, not all of their stores had the opportunity to reopen. Instead of completely filing for bankruptcy and going out of business, Victoria’s Secret decided to decrease its number of stores and lay off a fraction of their employees. This strategy can be referred to as __________.

After opening your electronics store, you want to pursue a differentiation strategy. Which of these could you do to achieve this?

What disadvantages of cost leadership would undermine the success of a business?