Exam 6: Corporate-Level Strategy Creating Value through Diversification

When management uses common production facilities or purchasing procedures to distribute different but related products, they are

Diversified public corporations such as Berkshire Hathaway and Virgin Group are examples of companies that create value using

With unrelated diversification, potential benefits can be gained from vertical or hierarchical relationships; that is, the creation of synergies from the interaction of the corporate office with outside stakeholders.

Which of the following statements regarding internal development as a means of diversification is false?

Common steps in management restructuring include all the following except

Factors that directly affect the merger and acquisition environment include all the following except

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

Diversified public corporations, such as Berkshire Hathaway and Virgin Group, create value through management expertise by improving plans and budgets. This is an example of a relateddiversification strategy.

Capital restructuring involves changing the ________ mix.

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

The term "golden parachute" refers to

One of the reasons it is said that only the investment banker wins when a company is acquired is that they

Explain potential benefits that can be gained from vertical (or hierarchicalrelationships when corporations use unrelated diversification to increase value.

________ diversification is when a firm enters a different business that has little horizontal interaction with other businesses of a firm.

The corporate office of Novartis, formerly Ciba-Geigy, acts to improve many key activities, including resource allocation and reward and evaluation systems. This is an example of creatingvalue by using

Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This isan example of

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 businesseslisted 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.

Sharing core competencies is one of the primary potential advantages of diversification. For diversification to be most successful, it is important that the

AOL purchased Time Warner for 114 billion USD in 2001. By 2003, AOL Time Warner had lost 150 billion USD in market valuation. This is an example of a

Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through ________ and ________ can provide.