Question

Windy Day Flags is a growing company that produces decorative flags and other whimsical garden accessories. Charla, owner and CEO, plans to purchase the small company that already provides their flag material; the purchase will cut Windy Day’s materials cost by half and bring over a few employees with very specialized knowledge and skills. Which knowledge acquisition is Charla using?a. reverse engineering.
b. grafting.
c. experimenting.
d. environmental scanning.

Answer 1

Answer:

B) grafting

Explanation:

This is a very common expansion strategy mostly used by high tech firms that purchase startups basically for their patents (innovations) and their workers' talent.

But it can also be used by any company that decides to acquire a smaller supplier or vendor in order to lower costs or increase efficiency.