Strategic Case Analysis
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Backward Integration
The acquisition by a company of businesses / business lines
providing the input sources for the company’s operations is
known as backward integration. In other words, backward
integration involves the upstream expansion of a company’s
supply chain.
Branding
A brand is a logo, name, term, design, sign, symbol, or slogan
that clearly identifies a company’s products / services and
differentiates these products / services from the competition.
The art and science of creating and maintaining a brand is
called brand management.
The monetary value of a brand is known as brand equity. The
measure of consumers’ knowledge of a brand is known as
brand awareness. Using a well established brand to launch a
new product category is known as brand extension.
Branding is important, because Americans are well known to
guzzle brands; in other words, Americans are usually willing
to pay the premium for a branded product. A business savvy
consumer who understands the concept of branding can come
out financially ahead by paying less for a product of
equivalent quality, which has less brand equity and / or
awareness.
Capital Budgeting
Accounting method which identifies costs by product lines (or
business segments). Using this method can help a business
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