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

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?

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.

Research fmds that the higher the number of business units in a company's portfolio, the easier it is for corporate managers to remain informed about the complexities of each business.

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

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

Which of the following is not a general organizational competency?

Miller Brewing was related to Philip Morris'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?

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

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

Leveraging competencies involves taking a distinctive competency developed by a business unit in one industry to create:

At its simplest level, a joint venture may be thought of as:

In which of the following industry envirornnents are acquisitions most likely to be favored over new ventures?

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

Diversification is the process of a company entering new industries distinct from its core industry, using a multibusiness model.

Free cash flow refers to additional funds from a government stimulus program.

Differentiate between joint venture and acquisition as a method to enter new industries.Discuss the advantages and disadvantages associated with each.

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

Economies of scope typically involve:

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

Which of the following entry strategies should be used when speed is an important consideration?