Exam 10: Corporate-Level Strategy: Related and Unrelated Diversification

Transferring competencies across industries involves taking a distinctive competency developed in one industry and implanting it in an existing business unit in another industry.

(True/False)

4.9/5

(42)

Question 21

If a company is to increase the probability of a new product's commercial success, the company must foster close links between:

(Multiple Choice)

4.7/5

(30)

Question 22

Firms can create profitable new business units by leveraging their competencies.

(True/False)

4.8/5

(30)

Question 23

Companies with a strong track record of internal new venturing generally excel at research and development.

(True/False)

4.7/5

(27)

Question 24

An appropriate reason to diversify is to pool the risk from several business ventures to create a more stable income stream.

(True/False)

4.8/5

(33)

Question 25

_____ involves taking a distinctive competency developed by a business unit in one industry and implanting it in a business unit operating in another industry.

(Multiple Choice)

4.9/5

(44)

Question 26

To be commercially successful, new products must be developed with ____ in mind.

(Multiple Choice)

5.0/5

(33)

Question 27

Economies of scope typically involve:

(Multiple Choice)

4.7/5

(40)

Question 28

A company's top managers do not need to have entrepreneurial capabilities for diversification to increase profitability.

(True/False)

4.7/5

(35)

Question 29

The coordination required to realize value from a diversification strategy based on transferring, sharing, or leveraging competencies is a major source of bureaucratic costs.

(True/False)

4.8/5

(39)

Question 30

Diversification may dissipate value if it is wrongly based on:

(Multiple Choice)

4.8/5

(29)

Question 31

Identify and discuss the profitability justifications for pursuing a multibusiness model based on diversification.

(Essay)

4.9/5

(45)

Question 32

Miller Brewing, which was acquired by Philip Morris, was related to the parent company's tobacco business because it was possible to create important marketing commonalities: both beer and tobacco are mass market consumer goods in which brand positioning, advertising, and product development skills are crucial to create successful new products. This is an example of which of the following?

(Multiple Choice)

4.8/5

(30)

Question 33

A company considering entering an industry that is in the mature stage of its life cycle would generally prefer which of the following entry strategies?

(Multiple Choice)

4.9/5

(34)

Question 34

Internal new ventures can generally be executed far more quickly than acquisitions.

(True/False)

4.8/5

(23)

Question 35

The greater the number of business units in a company's portfolio, the ____ it is for corporate managers to understand the complexities of each business.

(Multiple Choice)

5.0/5

(33)

Question 36

Acquisitions often fail because of:

(Multiple Choice)

4.9/5

(35)

Question 37

Which of the following statements is false?

(Multiple Choice)

4.7/5

(39)

Question 38

The managers of most companies often consider _____ when they are generating free cash flow.

(Multiple Choice)

4.8/5

(35)

Question 39

Which of the following statements concerning research and development is correct?

(Multiple Choice)

4.9/5

(28)

Question 40

Showing 21 - 40 of 73

Transferring competencies across industries involves taking a distinctive competency developed in one industry and implanting it in an existing business unit in another industry.

If a company is to increase the probability of a new product's commercial success, the company must foster close links between:

Firms can create profitable new business units by leveraging their competencies.

Companies with a strong track record of internal new venturing generally excel at research and development.

An appropriate reason to diversify is to pool the risk from several business ventures to create a more stable income stream.

_____ involves taking a distinctive competency developed by a business unit in one industry and implanting it in a business unit operating in another industry.

To be commercially successful, new products must be developed with ____ in mind.

Economies of scope typically involve:

A company's top managers do not need to have entrepreneurial capabilities for diversification to increase profitability.

The coordination required to realize value from a diversification strategy based on transferring, sharing, or leveraging competencies is a major source of bureaucratic costs.

Diversification may dissipate value if it is wrongly based on:

Identify and discuss the profitability justifications for pursuing a multibusiness model based on diversification.

A company considering entering an industry that is in the mature stage of its life cycle would generally prefer which of the following entry strategies?

Internal new ventures can generally be executed far more quickly than acquisitions.

The greater the number of business units in a company's portfolio, the ____ it is for corporate managers to understand the complexities of each business.

Acquisitions often fail because of:

Which of the following statements is false?

The managers of most companies often consider _____ when they are generating free cash flow.

Which of the following statements concerning research and development is correct?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters