Question 1

A major drawback of strategic alliances is that the leakage of knowledge outweighs the benefits gained from the alliance.

Accepted Answer

A) True 
 B)False  True

Question 2

Goold et al (1994) have studied the potential added value that the corporate level can give to the business level in a multi-business firm. What term do they use to describe this added value

Accepted Answer

A)  Transaction cost value 
B)  Transaction cost advantage 
C)  Parenting value 
D)  Parenting advantage 
A)  Transaction cost value 
B)  Transaction cost advantage 
C)  Parenting value 
D)  Parenting advantage D

Question 3

What are the key concerns for managers making corporate strategy decisions?

Accepted Answer

What is the corporate rationale? In other words, why does the corporation own that particular mix of businesses?
How does the corporation grow?
Are there any synergies between the businesses, and if so, how are they managed?
How does the corporate level justify its existence?
How should the corporation be structured?

Question 4

Private equity firms are the new synergy managers.

Accepted Answer

A) True 
 B)False

Question 5

Explain what is meant by the term 'synergy' in relation to corporate strategy.

Accepted Answer

Synergy can be expressed by the sum 2+2=

Question 6

The 1990s saw a surge in acquisition activity. This was primarily because

Accepted Answer

A)  The conglomerate strategy was proven to be the most profitable strategy 
B)  The pressures of global competition increased 
C)  The pressure to be locally responsive increased 
D)  Acquisition targets were cheap 
A)  The conglomerate strategy was proven to be the most profitable strategy 
B)  The pressures of global competition increased 
C)  The pressure to be locally responsive increased 
D)  Acquisition targets were cheap

Question 7

The traditional 'U-form' organizational structure is organized around

Accepted Answer

A)  Geographical areas 
B)  Product lines 
C)  Business functions 
D)  A combination of product line and geographical area 
A)  Geographical areas 
B)  Product lines 
C)  Business functions 
D)  A combination of product line and geographical area

Question 8

Strategic alliances would not involve two competitors

Accepted Answer

A) True 
 B)False

Question 9

A conglomerate firm is a multibusiness firm using which type of growth strategy

Accepted Answer

A)  Unrelated diversification 
B)  Related diversification 
C)  vertical integration 
D)  Synergy management 
A)  Unrelated diversification 
B)  Related diversification 
C)  vertical integration 
D)  Synergy management

Question 10

A viable corporate strategy is to buy up a failing conglomerate and sell off the individual parts at a profit.

Accepted Answer

A) True 
 B)False

Question 11

Strategy in a multi-business firm is commonly known as

Accepted Answer

A)  parenting strategy 
B)  conglomerate strategy 
C)  corporate strategy 
D)  portfolio strategy 
A)  parenting strategy 
B)  conglomerate strategy 
C)  corporate strategy 
D)  portfolio strategy

Question 12

One of the key questions that a multibusiness firm needs to consider is the degree of relatedness between businesses in the firm. Ideally, the value that is generated should be more than the sum of the businesses - this is known as

Accepted Answer

A)  diversification 
B)  synergy 
C)  optimization 
D)  satisficing 
A)  diversification 
B)  synergy 
C)  optimization 
D)  satisficing

Question 13

Which of the following writers studied the link between strategy and structure in the 1960s?

Accepted Answer

A)  Milton Friedman 
B)  Abraham Maslow 
C)  Henry Mintzberg 
D)  Alfred Chandler 
A)  Milton Friedman 
B)  Abraham Maslow 
C)  Henry Mintzberg 
D)  Alfred Chandler

Question 14

Which of the following corporate styles is likely to have centralized functions and systems?

Accepted Answer

A)  A private equity firm 
B)  Unrelated diversification 
C)  A conglomerate 
D)  Synergy manager 
A)  A private equity firm 
B)  Unrelated diversification 
C)  A conglomerate 
D)  Synergy manager

Question 15

Empirical research has found that multibusiness firms with related businesses are more successful than conglomerates.

Accepted Answer

A) True 
 B)False

Question 16

The growth-share matrix of the Boston Consulting Group is based on which theory?

Accepted Answer

A)  the resource based view 
B)  the experience curve 
C)  the product life cycle 
D)  the industry life cycle 
A)  the resource based view 
B)  the experience curve 
C)  the product life cycle 
D)  the industry life cycle

Question 17

In the language of the resource based view (RBV), the scope advantages that multibusinesses firms can theoretically benefit from can be described as

Accepted Answer

A)  core competencies 
B)  core rigidities 
C)  path dependency 
D)  causal ambiguity 
A)  core competencies 
B)  core rigidities 
C)  path dependency 
D)  causal ambiguity

Question 18

Prahalad et al's (1987) article entitled 'Collaborate with your competitors - and win' is referring to

Accepted Answer

A)  the paradoxical nature of strategic alliances 
B)  strong corporate cultures 
C)  organizational culture clashes between merging organizations 
D)  the psychology of the transnational organization 
A)  the paradoxical nature of strategic alliances 
B)  strong corporate cultures 
C)  organizational culture clashes between merging organizations 
D)  the psychology of the transnational organization

Question 19

It is in the pre-acquisition stage that most of the value of an acquisition is destroyed.

Accepted Answer

A) True 
 B)False

Question 20

What is the theoretical assumption behind the Boston Consulting Group Matrix?

Accepted Answer

The BCG matrix is based on the assumptio

A major drawback of strategic alliances is that the leakage of knowledge outweighs the benefits gained from the alliance.

Goold et al (1994) have studied the potential added value that the corporate level can give to the business level in a multi-business firm. What term do they use to describe this added value

What are the key concerns for managers making corporate strategy decisions?

Private equity firms are the new synergy managers.

Explain what is meant by the term 'synergy' in relation to corporate strategy.

The 1990s saw a surge in acquisition activity. This was primarily because

The traditional 'U-form' organizational structure is organized around

Strategic alliances would not involve two competitors

A conglomerate firm is a multibusiness firm using which type of growth strategy

A viable corporate strategy is to buy up a failing conglomerate and sell off the individual parts at a profit.

Strategy in a multi-business firm is commonly known as

One of the key questions that a multibusiness firm needs to consider is the degree of relatedness between businesses in the firm. Ideally, the value that is generated should be more than the sum of the businesses - this is known as

Which of the following writers studied the link between strategy and structure in the 1960s?

Which of the following corporate styles is likely to have centralized functions and systems?

Empirical research has found that multibusiness firms with related businesses are more successful than conglomerates.

The growth-share matrix of the Boston Consulting Group is based on which theory?

In the language of the resource based view (RBV), the scope advantages that multibusinesses firms can theoretically benefit from can be described as

Prahalad et al's (1987) article entitled 'Collaborate with your competitors - and win' is referring to

It is in the pre-acquisition stage that most of the value of an acquisition is destroyed.

What is the theoretical assumption behind the Boston Consulting Group Matrix?

Introduction to Strategy

Systems Model and Strategy Map

The Microeconomics of Strategy

The Macroeconomics of Strategy

Competitive Strategy: The Analysis of Strategic Position

Competitive Strategy: The Analysis of Strategic Capability

The Competitive Environment

Global Strategies and International Advantage

Organisational Models and Approaches to Strategy

Risk, Uncertainty and Strategy

Strategic Decision Making: Process Analysis

Strategic Decision Making: Managing Strategic Change

Strategy As Knowledge: Innovation and Learning

Strategy and Corporate Governance

Analyzing and Measuring Strategic Performance

Filters

Exam 8: Corporate Strategy: Adding Value in Multi-Business Firms

A major drawback of strategic alliances is that the leakage of knowledge outweighs the benefits gained from the alliance.

Goold et al (1994) have studied the potential added value that the corporate level can give to the business level in a multi-business firm. What term do they use to describe this added value

What are the key concerns for managers making corporate strategy decisions?

Private equity firms are the new synergy managers.

Explain what is meant by the term 'synergy' in relation to corporate strategy.

The 1990s saw a surge in acquisition activity. This was primarily because

The traditional 'U-form' organizational structure is organized around

Strategic alliances would not involve two competitors

A conglomerate firm is a multibusiness firm using which type of growth strategy

A viable corporate strategy is to buy up a failing conglomerate and sell off the individual parts at a profit.

Strategy in a multi-business firm is commonly known as

One of the key questions that a multibusiness firm needs to consider is the degree of relatedness between businesses in the firm. Ideally, the value that is generated should be more than the sum of the businesses - this is known as

Which of the following writers studied the link between strategy and structure in the 1960s?

Which of the following corporate styles is likely to have centralized functions and systems?

Empirical research has found that multibusiness firms with related businesses are more successful than conglomerates.

The growth-share matrix of the Boston Consulting Group is based on which theory?

In the language of the resource based view (RBV), the scope advantages that multibusinesses firms can theoretically benefit from can be described as

Prahalad et al's (1987) article entitled 'Collaborate with your competitors - and win' is referring to

It is in the pre-acquisition stage that most of the value of an acquisition is destroyed.

What is the theoretical assumption behind the Boston Consulting Group Matrix?

Introduction to Strategy

Systems Model and Strategy Map

The Microeconomics of Strategy

The Macroeconomics of Strategy

Competitive Strategy: The Analysis of Strategic Position

Competitive Strategy: The Analysis of Strategic Capability

The Competitive Environment

Global Strategies and International Advantage

Organisational Models and Approaches to Strategy

Risk, Uncertainty and Strategy

Strategic Decision Making: Process Analysis

Strategic Decision Making: Managing Strategic Change

Strategy As Knowledge: Innovation and Learning

Strategy and Corporate Governance

Analyzing and Measuring Strategic Performance

Filters