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

A disadvantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets.

For a core competence to be a viable basis for the corporation strengthening a new business unit,there are three requirements.Which one of the following is not one of these requirements?

Discuss and explain the three criteria that a core competence must meet if it is to create value and to provide a viable basis for synergy among the businesses in a corporation.

Portfolio models such as the BCG Portfolio matrix are limited in value because they only compare the SBU on four dimensions.

Diversified public corporations,such as Berkshire Hathaway and Virgin Group,create value through management expertise by improving plans and budgets.This is an example of a related diversification strategy.

Research shows that a key competence of high-performance diversified firms is the ability to

The risks of vertical integration include all the following except

The Hewlett-Packard and Autonomy merger in 2011 is an example of a successful merger.

Unbalanced capacities that limit cost savings,difficulties in combining specializations,and reduced flexibility are disadvantages associated with

Vertical integration is attractive when

When Cabot Corporation used the BCG matrix to evaluate its carbon black manufacturing business,the model led them to move away from ________ and to diversify into unrelated businesses listed as stars by the model.This resulted in a decline on return on assets.They eventually returned to carbon black manufacturing and divested the unrelated businesses; their 2016 revenue was 2.4 billion USD.

The Marriott International purchase of Starwood Hotels for 13.6 billion USD is an example of a(n)

________ is when the corporate office helps subsidiaries make wise choices in their own acquisitions,divestures,and new ventures,thereby creating value within business units.

Antitakeover tactics include all the following except

Firms that choose to diversify through internal development must develop ________ that allow them to move ________ from initial opportunity recognition to market introduction.

The downsides or limitations of mergers and acquisitions include all of the following except

________ is when one firm buys another through a stock purchase,cash or the issuance of debt.

Internal development may be time consuming and,therefore,firms may forfeit the benefits of speed that growth through ________ and ________ can provide.

Proctor and Gamble is a large multinational organization that has many business sharing distribution resources.Diversification strategies take advantage of the ________ that exist in their organization.

Diversified public corporations such as Berkshire Hathaway and Virgin Group are examples of companies that create value using