1) Factors enabling triumph of big firms: a) Inability to adapt to changing market trends b) Economies of scale c) Weak leadership 2) Conglomerate Competitive Advantage: a) Is based on the sharing of resources among different business units b) Refers to the inability of diversified multi-brand conglomerates to compete against specialized firms c) Is a disadvantage of the conglomerate business model 3) Financialization of Luxury: a) Refers to the decrease in demand for luxury goods due to economic factors b) Refers to the increasing importance of financial factors in the luxury goods industry c) Is based on the principle of democratization of luxury 4) What is the term for the competitive advantage that comes from combining different resources and capabilities? a) Structure b) Processes c) Synergies 5) What is a conglomerate? a) A corporate strategy to grow by merging repeatedly with or acquiring companies engaged in entirely different businesses b) Competitive Advantage c) Strategic Imperative 6) What are the benefits of a conglomerate? a) Operational Imperative b) Product optimization c) Bringing different companies under one corporate structure 7) What are the advantages of centralised brand management? a) Quality customer experience b) Branding Synergies c) Expand Market Share 8) What are the challenges of the luxury industry? a) There are no challenges b) Ambidexterity c) 3 Dynamics 9) What are the challenges faced by Kering? a) Too fashion oriented b) Too Gucci dependent c) Weak in hard jewellery 10) What are the challenges faced by Richemont? a) Weak soft luxury brands b) Too Bureaucratic c) Succession Organizational issues 11) What is the rise of the Big Three? a) The increase in the number of public luxury firms b) Benchmark c) External Growth Strategy 12) What is the financialization of luxury? a) Financial Imperative b) Internationalization c) The listing of luxury firms on the stock market
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V2 Session 5&6
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