Exam 7: Developing Corporate Strategy

Industries with relatively high ________ are among the most globalized.

What is portfolio planning, and what contribution does it make to corporate diversification?

Explain vertical scope.

Economies of scope is one of the two key factors in determining whether a corporate strategy is adding value through diversification. The other key factor is ________ opportunities.

Both economies of scope and revenue enhancement materialize when a firm expands into new lines of business.

Mutual gains may be derived from either ________ or ________ synergies.

What are the two concepts critical to evaluating opportunities for diversification and value creation?

The main determinant of CEO pay is the firm's industry.

Two concepts that are critical in evaluating opportunities for diversification and value creation are revenue-enhancement opportunities and ________.

Coke and Pepsi enjoy economies of scale in all but which of the following markets?

Segment profitability may vary widely by product group.

A firm's corporate strategy usually stays close to the same over time.

What tactics result in economies of scope?

When diversification is unrelated it is more likely to create value.

How can firms diversify in dynamic contexts?

Sometime firms entering new geographic markets discover that they must adapt certain components of their strategies to accommodate local environments.

All of the following can impede management's designs to create synergies except ________.

List the three questions that effective corporate strategists must consider.

The degree to which horizontal expansion is desirable depends on the degree to which the new industry is related to a firm's home industry.

Businesses that are managed separately always have an advantage over a corporation that maintains ownership over multiple business units because of their ability to gain specialized knowledge.