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

Research shows that a key competence of high-performance diversified firms is the ability to

In the BCG Growth Share Matrix,the suggested strategy for stars is to

Firms have several choices of diversification initiatives that can be used to create value.Which of the following is not one of them?

Firms that choose to diversify through internal development must develop ________ that allow them to move ________ from initial opportunity recognition to market introduction.

ConAgra,a diversified food producer,increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all its food divisions.This is an example of using

In 2012,Microsoft admitted to a major ________ mistake when it wrote off essentially the entire 6.2 billion USD it paid for a digital advertising firm,aQuantive,that it purchased in 2007.

In recent years,many high-tech firms such as Priceline.com have suffered from the negative impact of uncontrolled growth.

Portfolio models such as the BCG Portfolio matrix are limited in value because they only compare the SBU on four dimensions.

Portfolio models are used to assist a firm in

The term "golden parachute" refers to

In 2014,Apple purchased Beats Electronics for billion USD.While Apple valued the product portfolio of Beats,its primary aim was to pull the founders of Beats,Jimmy Iovine and Dr.Dre (aka Andrew Young),into the Apple family.This is an example of acquiring firms using acquisitions to acquire

When using a BCG matrix,a ________ is a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow.

If a multinational firm is unable to understand how the assets of the acquired company would fit with their own lines of business,this can lead to

Which of the following is not a reason for merger and acquisition failures?

Proctor and Gamble is a large multinational organization that has many business sharing distribution resources.Diversification strategies take advantage of the ________ that exist in their organization.

Asset restructuring involves the sale of ________ assets,or even whole lines of businesses that are peripheral.

When Cabot Corporation used the BCG matrix to evaluate its carbon black manufacturing business,the model led them to move away from ________ and to diversify into unrelated businesses listed as stars by the model.This resulted in a decline on return on assets.They eventually returned to carbon black manufacturing and divested the unrelated businesses;their 2016 revenue was 2.4 billion USD.

Portfolio management matrices are applied to what level of strategy?

Transaction costs include all the following costs except

________ is when the corporate office helps subsidiaries make wise choices in their own acquisitions,divestures,and new ventures,thereby creating value within business units.