Question 1

What are the primary benefits associated with unrelated diversification?

Accepted Answer

The primary potential benefits derive largely from value created by the corporate office. Examples include leveraging some of the support activities in the value chain, such as information systems or human resource practices. The corporate office adds value through such activities as planning, performance evaluation, and budgeting systems.

Question 2

Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics?

Accepted Answer

A)  Grid dimensions are based on external environments and internal capabilities/market positions. 
B)  Businesses are plotted on a 3-dimensional grid. 
C)  Position in the matrix suggests a need for, or ability to share, infrastructures or build on core competences. 
D)  They are most helpful in helping businesses develop types of competitive advantage. 
A)  Grid dimensions are based on external environments and internal capabilities/market positions. 
B)  Businesses are plotted on a 3-dimensional grid. 
C)  Position in the matrix suggests a need for, or ability to share, infrastructures or build on core competences. 
D)  They are most helpful in helping businesses develop types of competitive advantage. A

Question 3

In terms of strategy evaluation, which of the following terms describes whether the diversification strategy is in alignment with the organization's goals and objectives?

Accepted Answer

A)  Consistency 
B)  Consonance 
C)  Advantage 
D)  Feasibility 
A)  Consistency 
B)  Consonance 
C)  Advantage 
D)  Feasibility A

Question 4

Briefly explain the advantages of vertical integration.

Accepted Answer

Vertical integration represents an expan

Question 5

The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting.

Accepted Answer

A) True 
 B)False

Question 6

Explain the meaning of feasibility as it applies to the evaluation of a corporate strategy.

Accepted Answer

Feasibility refers to the capacity of th

Question 7

What is Real Options Analysis (ROA) and how can it be used by strategic decision makers?

Accepted Answer

The phrase "real options" applies to sit

Question 8

Portfolio management matrices are applied to what level of strategy?

Accepted Answer

A)  departmental level 
B)  business level 
C)  corporate level 
D)  international level 
A)  departmental level 
B)  business level 
C)  corporate level 
D)  international level

Question 9

An advantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets.

Accepted Answer

A) True 
 B)False

Question 10

The word synergy means:

Accepted Answer

A)  Creating value 
B)  Working together 
C)  Increasing competition 
D)  Deregulating industries 
A)  Creating value 
B)  Working together 
C)  Increasing competition 
D)  Deregulating industries

Question 11

Strategic alliances and joint ventures are quickly becoming less prominent in today's global economy.

Accepted Answer

A) True 
 B)False

Question 12

One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following tests evaluates such factors as entry barriers, supplier bargaining power, and the number of substitute products available?

Accepted Answer

A)  The just-like-me test 
B)  The attractiveness test 
C)  The cost-of-entry test 
D)  The better-off test 
A)  The just-like-me test 
B)  The attractiveness test 
C)  The cost-of-entry test 
D)  The better-off test

Question 14

Real options analysis is most appropriate when

Accepted Answer

A)  the total investment required is small, but the environment is uncertain. 
B)  the investment required can be justified by Discounted Cash Flow (DCF) techniques. 
C)  a small investment up front can be followed by a series of subsequent investments. 
D)  there is no prospect of obtaining additional knowledge before making subsequent investments. 
A)  the total investment required is small, but the environment is uncertain. 
B)  the investment required can be justified by Discounted Cash Flow (DCF) techniques. 
C)  a small investment up front can be followed by a series of subsequent investments. 
D)  there is no prospect of obtaining additional knowledge before making subsequent investments.

Question 15

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

Accepted Answer

A) True 
 B)False

Question 16

The term "golden parachute" refers to

Accepted Answer

A)  a clause requiring that huge dividend payments be made upon takeover. 
B)  financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it. 
C)  managers of a firm involved in a hostile takeover approaching a third party about making the acquisition. 
D)  pay given to executives fired because of a takeover. 
A)  a clause requiring that huge dividend payments be made upon takeover. 
B)  financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it. 
C)  managers of a firm involved in a hostile takeover approaching a third party about making the acquisition. 
D)  pay given to executives fired because of a takeover.

Question 17

What are some of the key issues to take into account when considering whether or not to vertically integrate?

Accepted Answer

The benefits of vertical integration inc

Question 18

When using the BCG matrix, a SBU with weak market shares in low-growth industries is described as a

Accepted Answer

A)  cow. 
B)  dog. 
C)  Monkey. 
D)  star. 
A)  cow. 
B)  dog. 
C)  Monkey. 
D)  star.

Question 19

In the BCG (Boston Consulting Group) matrix, a business that has a weak market share in an industry characterized by high market growth is called a:

Accepted Answer

A)  star. 
B)  question mark. 
C)  cash cow. 
D)  dog. 
A)  star. 
B)  question mark. 
C)  cash cow. 
D)  dog.

Question 20

Greenmail is an offer by a company, threatened by takeover, to offer its stock at a reduced price to a third party.

Accepted Answer

A) True 
 B)False

What are the primary benefits associated with unrelated diversification?

Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics?

In terms of strategy evaluation, which of the following terms describes whether the diversification strategy is in alignment with the organization's goals and objectives?

Briefly explain the advantages of vertical integration.

The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting.

Explain the meaning of feasibility as it applies to the evaluation of a corporate strategy.

What is Real Options Analysis (ROA) and how can it be used by strategic decision makers?

Portfolio management matrices are applied to what level of strategy?

An advantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets.

The word synergy means:

Strategic alliances and joint ventures are quickly becoming less prominent in today's global economy.

One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain.

Which of the following tests evaluates such factors as entry barriers, supplier bargaining power, and the number of substitute products available?

Real options analysis is most appropriate when

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

The term "golden parachute" refers to

What are some of the key issues to take into account when considering whether or not to vertically integrate?

When using the BCG matrix, a SBU with weak market shares in low-growth industries is described as a

In the BCG (Boston Consulting Group) matrix, a business that has a weak market share in an industry characterized by high market growth is called a:

Greenmail is an offer by a company, threatened by takeover, to offer its stock at a reduced price to a third party.

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the External Environment of the Firm

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

International Strategy: Creating Value in Global Markets

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters

Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

What are the primary benefits associated with unrelated diversification?

Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics?

In terms of strategy evaluation, which of the following terms describes whether the diversification strategy is in alignment with the organization's goals and objectives?

Briefly explain the advantages of vertical integration.

The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting.

Explain the meaning of feasibility as it applies to the evaluation of a corporate strategy.

What is Real Options Analysis (ROA) and how can it be used by strategic decision makers?

Portfolio management matrices are applied to what level of strategy?

An advantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets.

The word synergy means:

Strategic alliances and joint ventures are quickly becoming less prominent in today's global economy.

One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain.

Which of the following tests evaluates such factors as entry barriers, supplier bargaining power, and the number of substitute products available?

Real options analysis is most appropriate when

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

The term "golden parachute" refers to

What are some of the key issues to take into account when considering whether or not to vertically integrate?

When using the BCG matrix, a SBU with weak market shares in low-growth industries is described as a

In the BCG (Boston Consulting Group) matrix, a business that has a weak market share in an industry characterized by high market growth is called a:

Greenmail is an offer by a company, threatened by takeover, to offer its stock at a reduced price to a third party.

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the External Environment of the Firm

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

International Strategy: Creating Value in Global Markets

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters