Question 1

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

Accepted Answer

A)  product 
B)  service 
C)  geographic arena 
D)  strategy 
A)  product 
B)  service 
C)  geographic arena 
D)  strategy

Question 2

All of the following put pressure on conglomerates to reorganize except ________.

Accepted Answer

A)  multiple strategic options 
B)  shareholder dissatisfaction 
C)  possible hostile takeover attempts 
D)  the desire to become more manageable 
A)  multiple strategic options 
B)  shareholder dissatisfaction 
C)  possible hostile takeover attempts 
D)  the desire to become more manageable

Question 3

________ is the process by which diversification causes two or more interdependent businesses to adapt not only to their environment, but to each other.

Accepted Answer

A)  Synergy 
B)  Coexistence 
C)  Coevolution 
D)  Competitive adaptation 
A)  Synergy 
B)  Coexistence 
C)  Coevolution 
D)  Competitive adaptation

Question 4

________ exists when the combined benefits of a firm's activities in two or more arenas are more than the simple sum of those benefits alone.

Accepted Answer

A)  Synergy 
B)  Competitive advantage 
C)  Diversification 
D)  Corporate strategy 
A)  Synergy 
B)  Competitive advantage 
C)  Diversification 
D)  Corporate strategy

Question 5

Corporate-level strategy must maintain strategic coherence across business units to create value for shareholders.

Accepted Answer

A) True 
 B)False

Question 6

What are some of the limits of diversification benefits?

Accepted Answer

Neither economies of scope nor revenue e

Question 7

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

Accepted Answer

A)  parenting advantage 
B)  transferring capabilities 
C)  learning curves 
D)  diversification 
A)  parenting advantage 
B)  transferring capabilities 
C)  learning curves 
D)  diversification

Question 8

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Accepted Answer

A)  economy of scale 
B)  relatedness 
C)  diversity 
D)  management 
A)  economy of scale 
B)  relatedness 
C)  diversity 
D)  management

Question 9

Dissimilarity in dominant logic, or strategies, between business units in a firm increases the likelihood that managers will take more time to make decisions, and they will be ________ ones.

Accepted Answer

A)  detrimental 
B)  beneficial 
C)  neutral 
D)  complex 
A)  detrimental 
B)  beneficial 
C)  neutral 
D)  complex

Question 10

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Accepted Answer

A)  slightly lower 
B)  much lower 
C)  slightly higher 
D)  much higher 
A)  slightly lower 
B)  much lower 
C)  slightly higher 
D)  much higher

Question 11

Both unrelated and related diversification can create serious managerial problems.

Accepted Answer

A) True 
 B)False

Question 12

Diversification increases firm ________.

Accepted Answer

A)  costs 
B)  simplicity 
C)  complexity 
D)  revenues 
A)  costs 
B)  simplicity 
C)  complexity 
D)  revenues

Question 13

Compare related and unrelated diversification. Give an example of each.

Accepted Answer

Two things increase a firm's level of di

Question 14

What is related diversification?

Accepted Answer

Related diversification is a f

Question 15

All but which of the following can impede management's designs to create synergies?

Accepted Answer

A)  bureaucratic costs 
B)  transaction costs 
C)  complexity 
D)  simplicity 
A)  bureaucratic costs 
B)  transaction costs 
C)  complexity 
D)  simplicity

Question 16

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

Accepted Answer

A) True 
 B)False

Question 17

A significant diversification discount is a measure of the losses anticipated from buying a parent firm and selling off its portfolio piecemeal.

Accepted Answer

A) True 
 B)False

Question 18

The key to logical connection in arenas is ________.

Accepted Answer

A)  value 
B)  relatedness 
C)  resources 
D)  economics 
A)  value 
B)  relatedness 
C)  resources 
D)  economics

Question 19

Business history is full of stories of successful growth and diversification strategies.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are possible self-serving motives for diversification except ________.

Accepted Answer

A)  shareholder value 
B)  risk reduction 
C)  empire building 
D)  compensation 
A)  shareholder value 
B)  risk reduction 
C)  empire building 
D)  compensation

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

All of the following put pressure on conglomerates to reorganize except ________.

________ is the process by which diversification causes two or more interdependent businesses to adapt not only to their environment, but to each other.

________ exists when the combined benefits of a firm's activities in two or more arenas are more than the simple sum of those benefits alone.

Corporate-level strategy must maintain strategic coherence across business units to create value for shareholders.

What are some of the limits of diversification benefits?

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Dissimilarity in dominant logic, or strategies, between business units in a firm increases the likelihood that managers will take more time to make decisions, and they will be ________ ones.

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Both unrelated and related diversification can create serious managerial problems.

Diversification increases firm ________.

Compare related and unrelated diversification. Give an example of each.

What is related diversification?

All but which of the following can impede management's designs to create synergies?

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

A significant diversification discount is a measure of the losses anticipated from buying a parent firm and selling off its portfolio piecemeal.

The key to logical connection in arenas is ________.

Business history is full of stories of successful growth and diversification strategies.

All of the following are possible self-serving motives for diversification except ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 7: Developing Corporate Strategy

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

All of the following put pressure on conglomerates to reorganize except ________.

________ is the process by which diversification causes two or more interdependent businesses to adapt not only to their environment, but to each other.

________ exists when the combined benefits of a firm's activities in two or more arenas are more than the simple sum of those benefits alone.

Corporate-level strategy must maintain strategic coherence across business units to create value for shareholders.

What are some of the limits of diversification benefits?

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Dissimilarity in dominant logic, or strategies, between business units in a firm increases the likelihood that managers will take more time to make decisions, and they will be ________ ones.

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Both unrelated and related diversification can create serious managerial problems.

Diversification increases firm ________.

Compare related and unrelated diversification. Give an example of each.

What is related diversification?

All but which of the following can impede management's designs to create synergies?

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

A significant diversification discount is a measure of the losses anticipated from buying a parent firm and selling off its portfolio piecemeal.

The key to logical connection in arenas is ________.

Business history is full of stories of successful growth and diversification strategies.

All of the following are possible self-serving motives for diversification except ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters