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 focus on using or recombining existing competencies or building new competencies to enter new markets helps managers think strategically about how industry boundaries

Free

(Multiple Choice)

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Question 1

Correct Answer:

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

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(True/False)

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Question 2

Correct Answer:

Verified

True

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

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

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 4

A 100-year-old industrial giant,3M serves as an example of how a company can leverage technology to create successful new business.

(True/False)

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Question 5

When one or more components of a company's value chain are applicable to a wide variety of industrial and commercial situations,which of the following strategies should a company pursue?

(Multiple Choice)

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Question 6

Give an example of a firm that has diversified with an internal new venture.Was the strategy successful? Why or why not? Now answer these choices questions for a firm that has diversified through acquisitions and through a joint venture.

(Essay)

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Question 7

An internal new venture is the most appropriate strategic choice when

(Multiple Choice)

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Question 8

Which of the following is not a reason for the failure of an acquisition to generate the gains originally expected of it?

(Multiple Choice)

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Question 9

Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?

(Multiple Choice)

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Question 10

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)

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Question 11

Critics of Tyco's financial performance in the late 1990s argued that company officials were inflating the profitability of Tyco's operating units.

(True/False)

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Question 12

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

(Essay)

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Question 13

Multipoint competition occurs when companies compete against each other in different industries.

(True/False)

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Question 14

A company should pursue related diversification only to enhance the competitive position of its core business.

(True/False)

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Question 15

New ventures

(Multiple Choice)

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Question 16

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 17

A company should pursue related diversification instead of unrelated diversification when the company's

(Multiple Choice)

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Question 18

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

(True/False)

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Question 19

An advantage of related diversification is that it allows a company to quickly gain entry into a new industry where barriers are high.

(True/False)

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Question 20

Showing 1 - 20 of 80

A focus on using or recombining existing competencies or building new competencies to enter new markets helps managers think strategically about how industry boundaries

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

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

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

A 100-year-old industrial giant,3M serves as an example of how a company can leverage technology to create successful new business.

When one or more components of a company's value chain are applicable to a wide variety of industrial and commercial situations,which of the following strategies should a company pursue?

Give an example of a firm that has diversified with an internal new venture.Was the strategy successful? Why or why not? Now answer these choices questions for a firm that has diversified through acquisitions and through a joint venture.

An internal new venture is the most appropriate strategic choice when

Which of the following is not a reason for the failure of an acquisition to generate the gains originally expected of it?

Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?

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

Critics of Tyco's financial performance in the late 1990s argued that company officials were inflating the profitability of Tyco's operating units.

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

Multipoint competition occurs when companies compete against each other in different industries.

A company should pursue related diversification only to enhance the competitive position of its core business.

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.

A company should pursue related diversification instead of unrelated diversification when the company's

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

An advantage of related diversification is that it allows a company to quickly gain entry into a new industry where barriers are high.

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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