Exam 7: Developing Corporate Strategy

The practice of mapping diversified businesses or products based on their relative strengths and market attractiveness is called ________.

What are some of the possible ways that industries may be related?

Most global firms approach their corporate strategies from the perspective of their domestic market.

Because segments in closely related industries often use similar assets and resources, a firm can frequently achieve cost savings by sharing them among businesses in different segments.

The starting point in the portfolio planning process requires the firm to analyze businesses in terms of their ________.

Vertical expansion is often a logical growth option because a company is already familiar with the arena that it's entering.

What motivates a firm to expand geographically?

The ability to join the procurement function across more than one business unit and buy materials jointly creates an economy of scope.

Revenue-enhancement synergies generally arise from ________ and ________ opportunities.

How does Disney create revenue-enhancement synergies?

In a firm with a broad scope, division-level managers share resources and cooperate to implement their strategies.

Unrelated diversification is the form of diversification in which the business units that a firm operates are highly dissimilar.

Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool.

Synergy is the condition in which the combined benefits of multiple activities are greater than the simple sum of those benefits.

Most publicly traded firms are single-business operations.

Empire building almost always results in greater prestige for top executives.

Relatedness is assessed by how similar the underlying industries are.

Economies of scope generally arise from bundling and joint-selling opportunities.

Which of the following is not an option for a firm to expand the scope of its operations?

When examining the relationship between diversification and performance, it appears that diversification benefits shareholders up to a point, but tends to dissipate value at ________.