MIDTERM (WEEK 9): (FOR ASYNCHRONOUS)

Name: __ARVEN A. FRANCO___________ Date: ______________________

Course, Year and Major: ____BSBA, III-FM______________________

Directions: Read each item carefully. Identify the correct terminology to complete
the given statements. Write your answer on the space provided after each number.
1. __Integrative Growth Strategies_ are essentially external growth strategies
that involve investing the resources of the organization in another company
or business to achieve growth goals.
2. __Backward integration___ is another integrative acquisition growth strategy
where the organization buys one of its suppliers.
3. __Vertical Integration ____ is the process of consolidating into an
organization other companies involved in all aspects of a product’s or a
service’s process from raw materials to distribution.
4. __The Boston Consulting Group__ is a model that classifies products or
business units of organizations in terms of market share
and market growth in relation to the marketing leader.
5. __Market Growth___ refers to an increase in demand over time.
6. __The General Electric Model___ is a model used in assessing the strength of
a strategic business unit (SBU) of an organization using market attractiveness
and business strength as parameters.
7. __Horizontal Integration___ is an integrative acquisition growth strategy
where the organization acquires another competing business to eliminate real
or potential competitors.
8. __Question Marks___ a low market share in a high market growth defines:
9. __Market Share___ is the sales percentage of a company in relation to the
total sales percentage of the market in consideration.
10. __International Strategies___ are pursued by companies who might want to
sell their excess products outside their home markets.
II. CONSTRUCTED RESPONSE
Direction: Answer the following questions in no less than 5 sentences.

1. In your own understanding, explain what are integrative growth strategies?

For me integrative growth strategies are different type of strategies which a
company increases its sales and profit which includes vertical and horizontal
integration. Vertical integration is a strategy which firm are engage in
different parts of production like manufacturing, transporting, marketing,
and/or retailing. While Horizontal integration is the process of a company
increasing production of goods or services at the same part of the supply
chain via internal expansion, acquisition, or merger.

2. Is backward integration applicable to companies with traditional products?

Explain your answer and give example.
Yes, by integrating backward and merging with suppliers, Companies can
control their supply chain in an efficient manner. They will control the
production of raw materials until the production of the product. By this, they
will have a larger control on the quality of raw material to be used in
production. Also, the Company secures itself with the supply of material. It
will ensure that the Company receives adequate supplies as and when
required without worrying about raw materials being sold to the competitor
or not produced /manufactured by the suppliers. Examples are wood
furniture, instead of buying wood from logging company they will buy land
that are abundant of raw materials they need.
 3. What is the Boston Consulting Group Model? Choose a company and use
this model to discuss its market share and market growth status. Are there
stars, cash, cows, dogs, and question marks in the products of the company?
Make your recommendations.
Boston Consulting Group Model also know as BCG matrix is Devised as a
portfolio planning tool, or corporate planning tool, the BCG growth-share
matrix was first conceived by Bruce Henderson of  the Boston Consulting
Group back in the 1970's. The concept is based on four quadrants in which a
company's strategic business units (SBU) or products/brands are classified.

The example BCG matrix for Samsung electrical/electronic products below is

based on various statistics and reports available on the Internet.

Recommendation: I recommend since this generation are more innovated and

higher tech. They also upgrade their Dogs to use in any kind of transaction
like what they did to innovate their smart phone. And to be more convenient
 to someone that are going avail this product. And someday this dogs will
become cash cow.

If you are part of the top management and you want to pursue international
expansion, what global strategies will you recommend and why?  
I will suggest transnational techniques since it is stateless, all-
inclusive overseen firms that will speak to a larger part of universal commerce within
the future. Transnational firms have no single national central
station, but instep have numerous regional central commands and maybe a world base
camp. In a transnational procedure, about all the value-
adding exercises are managed from a worldwide point of view without reference to
national borders, optimizing sources of supply and request wherever they show up, and
taking advantage of any neighborhood competitive preferences. Transnational firms
take the globe, not the domestic nation, as their administration outline of reference.
The administration of these firms has been compared to a government structure in
which there'sa solid central administration center of choice making,
but significant dispersal of control and monetary muscle all
through the worldwide divisions. Few companies have achieved transnational status, but
Citicorp, Sony, Passage, and others are attempting.
 4. Research about the beginning of “Louis Vuitton”, include the challenges it
encountered through the years and its journey toward success. Then from the
management, result-driven, practical, and inspirational strategies
implemented
by Bernard Arnault, which struck you as something worth imitating? Explain
your answer.

“I always liked being number one,” Arnault says simply. “I did not succeed at the
piano, I did not succeed at tennis. I consider that success is to arrive at a point
where all my teams, the group is the number one in the world.” He adds, without
irony: “We are still small. We’re just getting started. This is very fun. We are
number one, but we can go further.”
This is the words that hit me, it tells me to be more competitive not only in pursuing
your goals to be successful but also to go beyond what you already did. I also
consider this as a motivation for me not to stop dreaming more or achieving more in
life. Because success is just a start of everything it will only stops when the times
gone. And for me that’s the words that Mr. Bernard Arnault said to be worth
imitating.