Question 1

Describe the four "types" of firms that come from combining product and geographic diversification. Explain which form is most successful and why.

Accepted Answer

​Most firms have to entertain both geogr

Question 2

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

Accepted Answer

A) True 
 B)False

Question 3

You recently noticed a comment in a blog which stated: "By its very nature, restructuring is a violation of CSR!" How do you feel about that?

Accepted Answer

In all of these questions, the important

Question 4

In that same blog another person stated: "Decisions about diversification and acquisition are not based on the well-being of the shareholder but instead on the needs of the CEO such as ego and job security. As a result, all such decisions should be submitted to a government agency for approval." Do you agree? Why or why not?

Accepted Answer

In all of these questions, the important

Question 5

Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

Accepted Answer

A) True 
 B)False

Question 6

Firm A is operating in a sunset industry; what is its most prudent strategic move?

Accepted Answer

A) ​Engage in vertical acquisitions. 
B) ​Diversify out of the industry. 
C)  ​Acquire its rivals. 
D)  ​None of the above. 
A) ​Engage in vertical acquisitions. 
B) ​Diversify out of the industry. 
C)  ​Acquire its rivals. 
D)  ​None of the above.

Question 7

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Accepted Answer

A) ​Leveraging connections with foreign governments. 
B) ​Reducing managers' employment risk. 
C)  ​A focus on the core competencies of the firm. 
D)  ​Searching for formal marketing-supporting and marketing-opening policy changes. 
A) ​Leveraging connections with foreign governments. 
B) ​Reducing managers' employment risk. 
C)  ​A focus on the core competencies of the firm. 
D)  ​Searching for formal marketing-supporting and marketing-opening policy changes.

Question 8

Hubris often leads to acquisition premiums.

Accepted Answer

A) True 
 B)False

Question 9

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

Accepted Answer

A) True 
 B)False

Question 10

You should understand that the nature of your industry might call for diversification, acquisitions, and restructuring.

Accepted Answer

A) True 
 B)False

Question 11

What is the difference between strategic fit and organizational fit?

Accepted Answer

​Inadequate screening and failure to ach

Question 12

Which of the following is true of mergers?

Accepted Answer

A) ​A new legal entity is established. 
B) ​A target firm becomes a unit of the acquiring firm. 
C)  ​Control of assets is turned over from one firm to its partner. 
D)  ​Mergers are much more common than acquisitions. 
A) ​A new legal entity is established. 
B) ​A target firm becomes a unit of the acquiring firm. 
C)  ​Control of assets is turned over from one firm to its partner. 
D)  ​Mergers are much more common than acquisitions.

Question 13

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

Accepted Answer

A) True 
 B)False

Question 14

In diversification, firms benefit from declining unit costs by leveraging product relatedness.

Accepted Answer

A) True 
 B)False

Question 15

To best add value, a product-unrelated diversifier needs to focus on:

Accepted Answer

A) ​Economies of scale. 
B) ​Centralization. 
C)  ​Financial synergy. 
D)  ​Cooperative organizational culture. 
A) ​Economies of scale. 
B) ​Centralization. 
C)  ​Financial synergy. 
D)  ​Cooperative organizational culture.

Question 16

Operational synergy involves economies of scale.

Accepted Answer

A) True 
 B)False

Question 17

Porter's five forces affect the structural attractiveness of an industry.

Accepted Answer

A) True 
 B)False

Question 18

Most cross-border deals are mergers rather than acquisitions.

Accepted Answer

A) True 
 B)False

Question 19

Sources of operation synergy:

Accepted Answer

A) Technologies. 
B) Marketing. 
C)  Manufacturing. 
D)  All of the above. 
E)  None of the above. 
A) Technologies. 
B) Marketing. 
C)  Manufacturing. 
D)  All of the above. 
E)  None of the above.

Question 20

You are the CEO of Mega Global Corporation and you are weighing a number of decisions involving diversification, acquisition, and restructuring. Long ago you were the manager of a mutual fund and you decide to make your decisions using the same approach as you used in managing that fund. How would that affect your decisions and decision process?

Accepted Answer

In all of these questions, the important

Describe the four "types" of firms that come from combining product and geographic diversification. Explain which form is most successful and why.

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

You recently noticed a comment in a blog which stated: "By its very nature, restructuring is a violation of CSR!" How do you feel about that?

Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

Firm A is operating in a sunset industry; what is its most prudent strategic move?

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Hubris often leads to acquisition premiums.

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

You should understand that the nature of your industry might call for diversification, acquisitions, and restructuring.

What is the difference between strategic fit and organizational fit?

Which of the following is true of mergers?

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

In diversification, firms benefit from declining unit costs by leveraging product relatedness.

To best add value, a product-unrelated diversifier needs to focus on:

Operational synergy involves economies of scale.

Porter's five forces affect the structural attractiveness of an industry.

Most cross-border deals are mergers rather than acquisitions.

Sources of operation synergy:

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 9: Diversifying, Acquiring, and Restructuring

Describe the four "types" of firms that come from combining product and geographic diversification. Explain which form is most successful and why.

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

You recently noticed a comment in a blog which stated: "By its very nature, restructuring is a violation of CSR!" How do you feel about that?

Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

Firm A is operating in a sunset industry; what is its most prudent strategic move?

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Hubris often leads to acquisition premiums.

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

You should understand that the nature of your industry might call for diversification, acquisitions, and restructuring.

What is the difference between strategic fit and organizational fit?

Which of the following is true of mergers?

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

In diversification, firms benefit from declining unit costs by leveraging product relatedness.

To best add value, a product-unrelated diversifier needs to focus on:

Operational synergy involves economies of scale.

Porter's five forces affect the structural attractiveness of an industry.

Most cross-border deals are mergers rather than acquisitions.

Sources of operation synergy:

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters