Exam 6: Corporate-Level Strategy

 The ultimate goal of an unrelated diversification strategy is usually to

 Footflyer Publishing is considering procuring editorial services from outside sources. Which of the following should NOT weigh in Footflyer's decision? 

 A firm can pass the better-off test in determining the viability of diversification when

 The ultimate goal of developing a corporate-level strategy is to build

 An appliance manufacturer acquires a fruit preserves cannery. This is an example of

 The distinguishing factor between unrelated and related diversification strategies is that a firm using unrelated diversification strategy

 XYZ Company has physical assets that are not being used to full capacity, and it has a strong brand name that it could use to leverage its assets. To grow, XYZ Company will likely pursue 

 Firms that have excess capacity or potential in their physical assets or their intangible assets tend to pursue unrelated diversification.

 The ultimate goal of an unrelated diversification strategy is usually to create some form of financial economies.

 Discuss the results of diversification.

 Z-Furn is an organization that manufactures and sells office furniture. It maintains a good name in this business and has strong capital resources. The organization decides to purchase a failing food product business in order to tap into the market of that company. Which of the following types of diversification is the firm pursuing?

 Footflyer Publishing has had difficulty finding timely press availability with a four-color printer for its magazines. Footflyer should consider

 Fine Electronics is a corporation that controls all aspects of its business such as extracting raw materials, manufacturing the products, distributing them, and finally marketing to customers. It manages these activities through several business units, where one unit provides inputs to the other. This is an example of

 The scope of a corporate-level strategy focuses on

 Firms pursuing related diversification to increase market power are attempting to decrease the price at which they sell their products to levels below the normal prices found in the market.

 According to one key study, performance increases as firms change from related diversification to unrelated diversification.

 In vertical integration, forward integration occurs when a firm

 Which of the following is NOT a reason why managers pursue diversification strategies?

 Transaction costs refer to the costs a firm incurs to coordinate activities between business units.

 Which of the following is the main goal of related diversification?