Exam 7: Developing Corporate Strategy

Diversification strategies always lead to increased shareholder value.

________ resources can be exploited across a wide range of activities.

All of the following are ways in which managers can assess relatedness among geographic national markets except ________.

Compare corporate strategies in dynamic and stable contexts.

Explain the relationship between diversification and performance.

All of the following are questions that corporate strategists must answer except ________.

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

An analytical tool that enables managers to calculate profits at various points along an industry value chain is called a ________.

Revenue-enhancement synergy exists when the whole is greater than the sum of the parts.

Complex firms are more difficult to manage than simple firms.

A firm becomes a prime candidate for takeover when investors suspect the prospect of a significant diversification discount.

What are some possible actions that may result in revenue-enhancement synergy?

Industries may be related in all of the following ways except ________.

What are implementation levers?

A profit pool map will reveal the segments in which money is ________ in an industry.

Define profit pool. What is its purpose?

By which formula can the concept of economies of scope be represented?

A firm's managers can respond more quickly and effectively to strategic issues if the strategies of its businesses are ________.

A company should conduct all but which of the following analyses before moving vertically into an adjacent segment of its industry value chain?

Coevolution means that units owned by the same corporation are potentially both collaborators and competitors.