This global company's mission is to "organize the world’s information and make it universally accessible and useful."
GOOGLE
This type of expansion strategy involves manufacturing products in one country and sending and selling them to another country.
EXPORTING
Which of the following companies has filed for Chapter 11 bankruptcy in the US?
A. Philippine Airlines
B. Tupperware
C. General Motors
D. All of the above
D. ALL OF THE ABOVE
- Philippine Airlines (2021)
- Tupperware (2024)
- General Motors (2009)
(Chapter 11 bankruptcy is a retrenchment strategy wherein the company continues to operate but must reorganize its business affairs, debts, and assets with approval by the courts.
Meanwhile, in a Chapter 7 bankruptcy, the company ceases operations and its assets are liquidated and the proceeds are distributed to creditors.)
In the BCG Matrix, this category represents high-growth, high-market-share business units that require significant investment to sustain their growth. While they generate substantial revenue, they also demand continuous funding to maintain their competitive position.
STAR
(A business unit or product line characterized as having high industry growth and high company market share)
The mission of this company is "to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world's premier entertainment company."
DISNEY or THE WALT DISNEY COMPANY
San Miguel Foods launched "Chik 'n Juicy," a chain of rotisserie stores that sells its Magnolia brand of chicken directly to consumers. This expansion is an example of a Concentration strategy, specifically:
A. Backward Integration
B. Forward Integration
C. Franchising
D. Licensing
E. Exporting
F. Acquisition
B. FORWARD INTEGRATION
(Forward integration = an expansion strategy where the company moves closer to customers by venturing into the distribution business
Backward integration = an expansion strategy where the company takes over the role of suppliers by supplying its own raw materials)
Which of the following is NOT a turnaround strategy?
A. Employee layoffs
B. Reduction of top management's salary and bonuses
C. Switching to a lower-cost supplier of raw materials
D. Filing for bankruptcy
E. All of the above
F. None of the above
D. FILING FOR BANKRUPTCY
Turnaround strategy emphasizes the improvement of operational efficiency and is most appropriate when a corporation’s problems are pervasive but not yet critical.
Filing for bankruptcy is a different type of retrenchment strategy which involves involves giving up management of the firm to the courts in return for some settlement of the corporation’s debts.
An appropriate strategy that can help further grow a Cash Cow business unit in the BCG Matrix quadrant is:
A. Turnaround
B. Market Penetration
C. Divestment
D. Diversification
B. MARKET PENETRATION
(Market penetration, from the Ansoff Matrix, involves selling more of the same products in the same markets—through strategies such as increased marketing efforts or encouraging customers to use the products more frequently.)
"Our mission is to inspire creativity and bring joy."
TIKTOK
Ayala Land Inc. adopted this expansion strategy in 2011 when it entered into a 25-year lease contract with UP for the development of a shopping center, now known as UP Town Center, in UP's 7.4-hectare property along Katipunan.
BOT (Build-Operate-Transfer) or PPP (Public-Private Partnership)
In 2016, LinkedIn implemented a sell-out strategy, selling the entire company for $26.2 billion in one of the largest deals in the industry. Which company acquired LinkedIn and remains its owner today?
MICROSOFT
When considering a portfolio with business units in both the "Cash Cow" and "Question Mark" quadrants of the BCG Matrix, which strategy should be prioritized for long-term profitability?
A. Divest "Question Marks" to improve profit margins
B. Reallocate resources from "Cash Cows" to "Question Marks" to increase growth
C. Maximize profit from "Cash Cows" to fund the development of "Question Marks"
D. Invest equally in both "Cash Cows" and "Question Marks" to maintain a holistic approach
C. Maximize profit from "Cash Cows" to fund the development of "Question Marks"
(Maximizing profit from "Cash Cows" provides the necessary funding to support the growth of "Question Marks," which have the potential to become future "Stars" and drive long-term profitability.)
The vision of this local bank:
To become the most customer-centric bank in the Philippines.
SECURITY BANK
Luxottica, an Italian conglomerate, manufactures and sells Ray-Ban and Oakley sunglasses, operates Sunglass Hut retail stores, and manages EyeMed Vision Care, a vision insurance provider.
Based on this description, Luxottica has expanded its business primarily through:
A. Concentric Diversification
B. Conglomerate Diversification
C. Concentration
D. Exporting
E. Franchising
F. Licensing
A. CONCENTRIC DIVERSIFICATION
(Concentric Diversification - expanding to another industry with related or overlapping value chain processes
Conglomerate Diversification - expanding to another industry without related or overlapping value chain processes)
In 2014, Unilever divested its Royal pasta brand in the Philippines, selling it for P2.1 billion to this local company.
(Hint: This company is also Unilever’s joint venture partner in the Selecta ice cream business.)
RFM CORPORATION
Vitamin supplements Neurobion and Sangobion are produced and marketed by this multinational company, after acquiring and including in their business portfolio Merck's Consumer Health division in 2018.
PROCTER & GAMBLE (P&G)
A global leader in education [fostering] sustainable socio-economic growth in society through innovation, digital transformation, and lifelong education.
This is the vision of which Philippine university?
MAPUA UNIVERSITY
This is a type of expansion strategy in which a company builds a new project—such as a manufacturing plant, sales office, or real estate development—from the ground up in a previously undeveloped location, rather than acquiring or partnering with an existing business or facility.
GREENFIELD or GREENFIELD INVESTMENT
This Philippine company in the food and restaurant industry pursued a diversification strategy by operating multiple restaurant brands and a hotel, the Meranti Hotel in Quezon City. However, the strategy proved unsuccessful, leading them to implement a sell-out strategy, selling its wholly-owned hotel subsidiary, Room Ventures Corp. in 2019.
MAX'S GROUP
(After selling its hotel business, Max’s Group shifted its focus exclusively to the food industry, adopting a Concentration strategy. It operates restaurant brands such as Max’s, Yellow Cab, Pancake House, Dencio’s, Teriyaki Boy, and the local franchises of Jamba Juice and Krispy Kreme.)
If the ratings for Apple's business portfolio are as follows, which Apple product or service below can be found in the QUESTION MARK quadrant of the BCG Matrix?
A. iPhone (Low Industry Growth, High Market Share)
B. Apple Watch (High Industry Growth, High Market Share)
C. Apple TV+ (High Industry Growth, Low Market Share)
D. iTunes (Low Industry Growth, Low Market Share)
E. Macbook (Low Industry Growth, High Market Share)
F. None of the above
(NOTE: Rely only on the provided data.)
C. Apple TV+
1. High Industry Growth, Low Market Share = QUESTION MARK (Apple TV+)
2. Low Industry Growth, High Market Share = CASH COW (iPhone, Macbook)
3. High Industry Growth, High Market Share = STAR (Apple Watch)
4. Low Industry Growth, Low Market Share = DOG (iTunes)