Exam 6: Corporate-Level Strategy Creating Value through Diversification

A firm should consider vertical integration when

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

Vertical integration is attractive when

Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.

Antitakeover tactics include all the following except

Research shows that most acquisitions of public corporations result in value creation rather than value destruction.

At Cooper Industries, there are few similarities in the products it makes or the industries in which it completes. The corporate office adds value through such activities as improvingtheir accounting activities and centralizing union negotiations. This is an example of creating value by using

According to Michael Porter, there is a tremendous allure to ________. It is the big play, the dramatic gesture. With one stroke of the pen, you can add billions to size, get a front-pagestory, and create excitement in markets.

Gillette developed the Fusion and Mach 3 shaving systems. These products created superior customer value as a result of the company core competency in research and development.

Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles, shares manufacturing operations across its businesses. It also has a corporate research and development facility and staff departments that support all the Polaris operating divisions. This is an example of creating value by using

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

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

Cisco Systems, a computer networking firm, has undertaken over 80 acquisitions in the last decade. It uses these acquisitions to acquire ________ that will permit it to expand its productofferings and services through the addition of the acquired technologies.

________ is when one firm buys another through a stock purchase, cash or the issuance of debt.

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

In managing the corporate portfolio, the BCG matrix would suggest that

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.

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 in2007

It is necessary for a core competence to be difficult to imitate and to be non-substitutable.