Exam 6: Corporate-level Strategy: Creating Value Through Diversification

Cisco Systems,a computer networking firm,has undertaken over 80 acquisitions in the last decade.It uses these acquisitions to acquire ________ that will permit it to expand its product offerings and services through the addition of the acquired technologies.

3M leverages its competencies in adhesives technologies to many industries,including automotive,construction,and telecommunications.This is an example of creating value by using

________ diversification is when a firm enters a different business that has little horizontal interaction with other businesses of a firm.

In 2012,Microsoft admitted to a major ________ mistake when it wrote off essentially the entire 6.2 billion USD it paid for a digital advertising firm,aQuantive,that it purchased in 2007.

Common steps in management restructuring include all the following except

Asset restructuring involves the sale of ________ assets,or even whole lines of businesses that are peripheral.

________ is when a new legal entity is formed by a combination or consolidation of two firms.

Gillette developed the Fusion and Mach 3 shaving systems.These products created superior customer value as a result of the company core competency in research and development.

In the BCG Matrix,a ________ is a business that has a low market share in an industry characterized by high market growth.

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.

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

When management uses common production facilities or purchasing procedures to distribute different but related products,they are

Portfolio management frameworks,such as the BCG matrix,share which of the following characteristics?

Cooperative relationships such as ________ have potential advantages such as entering new markets,reducing manufacturing (or other)costs in the value chain,and developing and diffusing new technologies.

In the BCG Growth Share Matrix,the suggested strategy for stars is to

Corporate-level strategy focuses on

ConAgra,a diversified food producer,increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all its food divisions.This is an example of using

Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?

________ is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant,positive change,thereby creating value within business units.

When firms diversify into unrelated businesses,the primary potential benefits are horizontal relationships,i.e.,businesses sharing tangible and intangible resources.