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.

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

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Sara Lee Corp., a clothing firm, purchased Platex Apparel Inc.This purchase helped to make Sara Lee Corp.one of the largest makers of women's apparel in the United States.Sara Lee Corp.utilized an acquisition strategy.

(True/False)

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Question 61

When McDonald's introduced the McCafe, it began offering a new product that was not available in traditional McDonald's stores.The introduction of the McCafe is an example of which of the following?

(Multiple Choice)

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Question 62

One way a diversified company can increase its profitability is by acquiring inefficient or poorly managed companies and then restructuring them to improve their performance.

(True/False)

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Question 63

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?

(Multiple Choice)

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Question 64

Product bundling refers to:

(Multiple Choice)

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Question 65

When a finn does not pay out its free cash flow to its shareholders, the shareholders bear an opportunity cost equal to their next best use of those funds.

(True/False)

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Question 66

An appropriate reason to diversify is to pool the risk from several business ventures in order to create a more stable income stream.

(True/False)

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Question 67

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 68

A company should pursue unrelated diversification instead of related diversification when:

(Multiple Choice)

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Question 69

A company's top managers need not have entrepreneurial capabilities for diversification to increase profitability.

(True/False)

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Question 70

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 71

Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification?

(Multiple Choice)

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Question 72

Joint ventures:

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Question 73

Showing 61 - 73 of 73

Sara Lee Corp., a clothing firm, purchased Platex Apparel Inc.This purchase helped to make Sara Lee Corp.one of the largest makers of women's apparel in the United States.Sara Lee Corp.utilized an acquisition strategy.

When McDonald's introduced the McCafe, it began offering a new product that was not available in traditional McDonald's stores.The introduction of the McCafe is an example of which of the following?

One way a diversified company can increase its profitability is by acquiring inefficient or poorly managed companies and then restructuring them to improve their performance.

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?

Product bundling refers to:

When a finn does not pay out its free cash flow to its shareholders, the shareholders bear an opportunity cost equal to their next best use of those funds.

An appropriate reason to diversify is to pool the risk from several business ventures in order to create a more stable income stream.

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

A company should pursue unrelated diversification instead of related diversification when:

A company's top managers need not have entrepreneurial capabilities for diversification to increase profitability.

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

Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification?

Joint ventures:

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

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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