A) are an alternative to new ventures. B) are attractive when speed is important. C) are attractive when entry barriers are high. D) should be done on a small scale. E) reduce the risk of loss of proprietary knowledge. A) are an alternative to new ventures. B) are attractive when speed is important. C) are attractive when entry barriers are high. D) should be done on a small scale. E) reduce the risk of loss of proprietary knowledge.

A) should be killed if they don't make a profit within three years. B) are often preferred by technology-based companies. C) are preferred compared to acquisitions when entry barriers are high. D) are less risky than acquisitions. E) are best when the company is entering the industry on a small scale. A) should be killed if they don't make a profit within three years. B) are often preferred by technology-based companies. C) are preferred compared to acquisitions when entry barriers are high. D) are less risky than acquisitions. E) are best when the company is entering the industry on a small scale.

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

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

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

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(True/False)

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Question 2

Correct Answer:

Verified

True

An advantage of unrelated diversification is that competencies can be shared and leveraged throughout the value chain activities.

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(True/False)

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Question 3

Correct Answer:

Verified

False

Under what conditions should a firm that is facing the need to diversify consider the use of an internal new venture strategy,an acquisition strategy,or a joint venture strategy?

(Essay)

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Question 4

Free cash flow is defined as

(Multiple Choice)

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Question 5

Which of the following is (are)the probable consequence(s)of an inability to integrate two divergent corporate cultures after an acquisition?

(Multiple Choice)

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Question 6

A company can increase the probability of success of an internal venture by constructing efficient scale manufacturing facilities ahead of demand.

(True/False)

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Question 7

Joint ventures

(Multiple Choice)

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Question 8

What is the process of transferring resources to and creating a new business unit in a new industry called?

(Multiple Choice)

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Question 9

New ventures

(Multiple Choice)

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Question 10

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

(Multiple Choice)

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Question 11

Diversification may dissipate value if it is wrongly based on

(Multiple Choice)

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Question 12

At its simplest level,a joint venture may be thought of as a(n)

(Multiple Choice)

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Question 13

General organizational competencies are found

(Multiple Choice)

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Question 14

For diversification to increase profitability,a company's top managers must have superior entrepreneurial capabilities.

(True/False)

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Question 15

Which of the following statements is not generally true of a diversification strategy based on the realization of economies of scope?

(Multiple Choice)

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Question 16

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

(Multiple Choice)

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Question 17

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

(Essay)

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Question 18

New ventures are likely to be preferred compared to acquisitions when

(Multiple Choice)

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Question 19

If a company's core skills are highly specialized and have few applications outside the core business,then a company should pursue a related diversification strategy.

(True/False)

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Question 20

Showing 1 - 20 of 75

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?

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

An advantage of unrelated diversification is that competencies can be shared and leveraged throughout the value chain activities.

Under what conditions should a firm that is facing the need to diversify consider the use of an internal new venture strategy,an acquisition strategy,or a joint venture strategy?

Free cash flow is defined as

Which of the following is (are)the probable consequence(s)of an inability to integrate two divergent corporate cultures after an acquisition?

A company can increase the probability of success of an internal venture by constructing efficient scale manufacturing facilities ahead of demand.

Joint ventures

What is the process of transferring resources to and creating a new business unit in a new industry called?

New ventures

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

Diversification may dissipate value if it is wrongly based on

At its simplest level,a joint venture may be thought of as a(n)

General organizational competencies are found

For diversification to increase profitability,a company's top managers must have superior entrepreneurial capabilities.

Which of the following statements is not generally true of a diversification strategy based on the realization of economies of scope?

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

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

New ventures are likely to be preferred compared to acquisitions when

If a company's core skills are highly specialized and have few applications outside the core business,then a company should pursue a related diversification strategy.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

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