Exam 7: Developing Corporate Strategy

A firm typically increases geographic scope by moving into new geographic arenas without altering its ________.

All of the following are possible implementation levers except ________.

The more dissimilar the contexts across which its businesses compete, the harder it is to manage a firm's portfolio and to create value through economies of scope.

A ________ is a business that has a strong competitive position in a slow-growth industry.

General Electric was among the 12 original companies to be included in the newly created Dow Jones Industrial Average.

A "dog" is a business that has a very strong competitive position, but is in a slow-growth industry.

A corporation consisting of many companies in different businesses or industries is called a ________.

Investors can make reasonable estimates of a business unit's potential independent value by using ________ ratios.

Synergy is the degree to which a firm conducts business in more than one arena.

A condition under which the joint output of two or more products within a single firm results in increased average costs is called ________.

Moving "upstream" in an industry value chain will draw firms closer to the source of needed raw materials.

The diversification strategy of conglomerates can work very effectively in ________.

A ________ is a business that has a weak competitive position but is in a high-growth industry.

Synergies can come from all of the following except ________.

How might investors make reasonable estimates of a business unit's potential independent value?

Economies of scope are only possible in production.

To create economies of scope and revenue-enhancement synergies, a firm's resources should counteract with its business activities.

The strategy of common ownership can dissipate potential shareholder value.

In relatively stable environments, synergies are typically conceived as functions of static business-unit arenas and the formal structural links among them.

High levels of diversification can be very effective strategies in countries with developing capital markets.