Question 1

Corporate-level strategy focuses on _____________.

Accepted Answer

A)  gaining long-term revenue 
B)  gaining short-term profits 
C)  decreasing business locations 
D)  managing investment bankers and their interests 
A)  gaining long-term revenue 
B)  gaining short-term profits 
C)  decreasing business locations 
D)  managing investment bankers and their interests A

Question 2

Similar businesses working together or the affiliation of a business with a strong parent can strengthen the bargaining position of a company relative to suppliers and customers.

Accepted Answer

A) True 
 B)False  True

Question 3

Unbalanced capacities that limit cost savings,difficulties in combining specializations,and reduced flexibility are disadvantages associated with ___________.

Accepted Answer

A)  strategic alliances 
B)  divestment 
C)  horizontal integration 
D)  vertical integration 
A)  strategic alliances 
B)  divestment 
C)  horizontal integration 
D)  vertical integration D

Question 4

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

Accepted Answer

A)  Many companies use internal development to extend their product or service offers. 
B)  An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services. 
C)  The firm is able to capture wealth created without having to share the wealth with alliance partners. 
D)  Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding. 
A)  Many companies use internal development to extend their product or service offers. 
B)  An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services. 
C)  The firm is able to capture wealth created without having to share the wealth with alliance partners. 
D)  Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding.

Question 5

According to the text,corporate restructuring includes

Accepted Answer

A)  capital restructuring, asset restructuring, and technology restructuring 
B)  global diversification, capital restructuring, and asset restructuring 
C)  management restructuring, financial restructuring, and procurement restructuring 
D)  capital restructuring, asset restructuring, and management restructuring 
A)  capital restructuring, asset restructuring, and technology restructuring 
B)  global diversification, capital restructuring, and asset restructuring 
C)  management restructuring, financial restructuring, and procurement restructuring 
D)  capital restructuring, asset restructuring, and management restructuring

Question 6

A golden parachute is a prearranged contract with managers specifying that,in the event of a hostile takeover,the target company managers will be paid a significant severance package.

Accepted Answer

A) True 
 B)False

Question 7

A car manufacturer controls its own system of dealerships to ensure retail outlets for its products.This is an example of backward integration.

Accepted Answer

A) True 
 B)False

Question 8

An advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with its partners.

Accepted Answer

A) True 
 B)False

Question 9

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 is an example of ______________.

Accepted Answer

A)  leveraging core competencies 
B)  sharing activities 
C)  pooled negotiating power 
D)  vertical integration 
A)  leveraging core competencies 
B)  sharing activities 
C)  pooled negotiating power 
D)  vertical integration

Question 10

The Cisco acquisition of Pure Digital Technologies,the parent of the Flip video camera,failed because __________________.

Accepted Answer

A)  Cisco had valuable competencies 
B)  the Flip division of Cisco was slow and less responsive to market pressures 
C)  consumers continued to purchase the camera 
D)  Cisco had good vision of the market 
A)  Cisco had valuable competencies 
B)  the Flip division of Cisco was slow and less responsive to market pressures 
C)  consumers continued to purchase the camera 
D)  Cisco had good vision of the market

Question 11

Vertical integration is attractive when market transaction costs are higher than internal administrative costs.

Accepted Answer

A) True 
 B)False

Question 12

IBM leverages its competencies in computing technology to provide health care services.This is an example of a core competence being used across dissimilar businesses within the same corporation.

Accepted Answer

A) True 
 B)False

Question 13

It is not necessary for a core competence to be difficult to imitate or to be nonsubstitutable.

Accepted Answer

A) True 
 B)False

Question 14

When using a BCG matrix,a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a __________.

Accepted Answer

A)  Cash Cow 
B)  Dog 
C)  Star 
D)  Question Mark 
A)  Cash Cow 
B)  Dog 
C)  Star 
D)  Question Mark

Question 15

Research shows that the vast majority of acquisitions results in value creation rather than value destruction.

Accepted Answer

A) True 
 B)False

Question 16

When firms diversify into related businesses,the primary potential benefits come from horizontal relationships,which are businesses sharing intangible and tangible resources.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not part of a good guideline list for managing strategic alliances?

Accepted Answer

A)  establishing a clear understanding between partners 
B)  not shortchanging your partner 
C)  relying primarily on a contract to make the joint venture work 
D)  working hard to ensure a collaborative relationship between partners 
A)  establishing a clear understanding between partners 
B)  not shortchanging your partner 
C)  relying primarily on a contract to make the joint venture work 
D)  working hard to ensure a collaborative relationship between partners

Question 19

At times,the only other people who may have benefited from a merger-acquisition were the shareholders of the acquired firms.

Accepted Answer

A) True 
 B)False

Question 20

The two principal means by which firms achieve synergy through market power are pooled negotiating power and corporate parenting.

Accepted Answer

A) True 
 B)False

Corporate-level strategy focuses on _____________.

Similar businesses working together or the affiliation of a business with a strong parent can strengthen the bargaining position of a company relative to suppliers and customers.

Unbalanced capacities that limit cost savings,difficulties in combining specializations,and reduced flexibility are disadvantages associated with ___________.

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

According to the text,corporate restructuring includes

A golden parachute is a prearranged contract with managers specifying that,in the event of a hostile takeover,the target company managers will be paid a significant severance package.

A car manufacturer controls its own system of dealerships to ensure retail outlets for its products.This is an example of backward integration.

An advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with its partners.

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 is an example of ______________.

The Cisco acquisition of Pure Digital Technologies,the parent of the Flip video camera,failed because __________________.

Vertical integration is attractive when market transaction costs are higher than internal administrative costs.

IBM leverages its competencies in computing technology to provide health care services.This is an example of a core competence being used across dissimilar businesses within the same corporation.

It is not necessary for a core competence to be difficult to imitate or to be nonsubstitutable.

When using a BCG matrix,a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a __________.

Research shows that the vast majority of acquisitions results in value creation rather than value destruction.

When firms diversify into related businesses,the primary potential benefits come from horizontal relationships,which are businesses sharing intangible and tangible resources.

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 part of a good guideline list for managing strategic alliances?

At times,the only other people who may have benefited from a merger-acquisition were the shareholders of the acquired firms.

The two principal means by which firms achieve synergy through market power are pooled negotiating power and corporate parenting.

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Business-Level Strategy: Creating Andsustaining Competitive Advantages

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters

Exam 6: Corporate-Level Strategy: Creatingvalue Through Diversification

Corporate-level strategy focuses on _____________.

Similar businesses working together or the affiliation of a business with a strong parent can strengthen the bargaining position of a company relative to suppliers and customers.

Unbalanced capacities that limit cost savings,difficulties in combining specializations,and reduced flexibility are disadvantages associated with ___________.

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

According to the text,corporate restructuring includes

A golden parachute is a prearranged contract with managers specifying that,in the event of a hostile takeover,the target company managers will be paid a significant severance package.

A car manufacturer controls its own system of dealerships to ensure retail outlets for its products.This is an example of backward integration.

An advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with its partners.

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 is an example of ______________.

The Cisco acquisition of Pure Digital Technologies,the parent of the Flip video camera,failed because __________________.

Vertical integration is attractive when market transaction costs are higher than internal administrative costs.

IBM leverages its competencies in computing technology to provide health care services.This is an example of a core competence being used across dissimilar businesses within the same corporation.

It is not necessary for a core competence to be difficult to imitate or to be nonsubstitutable.

When using a BCG matrix,a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a __________.

Research shows that the vast majority of acquisitions results in value creation rather than value destruction.

When firms diversify into related businesses,the primary potential benefits come from horizontal relationships,which are businesses sharing intangible and tangible resources.

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 part of a good guideline list for managing strategic alliances?

At times,the only other people who may have benefited from a merger-acquisition were the shareholders of the acquired firms.

The two principal means by which firms achieve synergy through market power are pooled negotiating power and corporate parenting.

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Business-Level Strategy: Creating Andsustaining Competitive Advantages

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters