Exam 13: Implementing Strategy in Companies That Compete Across Industries and Countries

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Few integrating mechanisms are needed between divisions when a company uses a worldwide-area structure.

(True/False)
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In a joint venture, sometimes one company insists on having a 51% share or more, giving it the ability to buy out the other party at some point in the future should problems emerge.

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A company, EricMotors, has three business units.Each of these business units performs all the value chain functions needed to pursue the business model successfully.What are these business units referred to as?

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Starbucks' Frappuccino is distributed by Pepsi.Nestle and Coca-Cola announced an agreement with Beverage Partners Worldwide through which Coca-Cola will distribute and sell Nestle's Nestea throughout the globe.These are examples of which of the following?

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Corporate managers' capabilities in organizational design are vital in ensuring the success of a merger or acquisition.

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Sometimes companies can simply realize the joint benefits from collaboration without having to form a new company.

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A joint venture occurs when two equal-sized finns agree to blend their operations, creating one larger firm.

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When a finn's managers are concerned about the possibility of losing control of proprietary know-how, which entry mode should the firm avoid?

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Vertical integration is a less expensive strategy to manage than is unrelated diversification.

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