Question 1

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

Accepted Answer

A)  cash cow 
B)  dog 
C)  star 
D)  question mark 
A)  cash cow 
B)  dog 
C)  star 
D)  question mark A

Question 2

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

Accepted Answer

A)  activity chain 
B)  profit pool 
C)  U-curve 
D)  S-curve 
A)  activity chain 
B)  profit pool 
C)  U-curve 
D)  S-curve B

Question 3

Depths of profit pools are stable within a given value-chain segment.

Accepted Answer

A) True 
 B)False  False

Question 4

When an adjacent segment is profitable, it is always a good area for a firm to enter.

Accepted Answer

A) True 
 B)False

Question 5

Where can synergies in business come from?

Accepted Answer

Creating synergies among its businesses

Question 6

Reductions in average costs that result from producing two or more products jointly instead of producing them separately are called ________.

Accepted Answer

A)  cost advantages 
B)  economies of scope 
C)  synergistic integrations 
D)  strategic values 
A)  cost advantages 
B)  economies of scope 
C)  synergistic integrations 
D)  strategic values

Question 7

Businesses can be related along several different dimensions including all of the following except ________.

Accepted Answer

A)  similarity in markets 
B)  use of resources 
C)  reliance on comparable dominant logic 
D)  reliance on contextual economic logic 
A)  similarity in markets 
B)  use of resources 
C)  reliance on comparable dominant logic 
D)  reliance on contextual economic logic

Question 8

Managers can squander value through diversification.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  parenting advantage 
B)  synergy 
C)  diseconomies of scope 
D)  economies of scope 
A)  parenting advantage 
B)  synergy 
C)  diseconomies of scope 
D)  economies of scope

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The economic logic of diversification incorporates levers to achieve synergy and transfer knowledge between business units.

Accepted Answer

A) True 
 B)False

Question 12

What was the impact of the Sherman Antitrust Act of 1890 on corporate diversification strategies?

Accepted Answer

The Sherman Act of 1890 introduced feder

Question 13

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

Accepted Answer

A)  vertical 
B)  horizontal 
C)  similar 
D)  dissimilar 
A)  vertical 
B)  horizontal 
C)  similar 
D)  dissimilar

Question 14

Explain the relationship between diversification and performance.

Accepted Answer

The relationship between diversification

Question 15

________ 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 16

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

Accepted Answer

A)  multiple regions within one country 
B)  a single region within one country 
C)  mature capital markets 
D)  developing capital markets 
A)  multiple regions within one country 
B)  a single region within one country 
C)  mature capital markets 
D)  developing capital markets

Question 17

Expanding a firm's scope does not necessarily create value for shareholders.

Accepted Answer

A) True 
 B)False

Question 18

In some cases, firms can create values by moving into buyers' value chains if it can bundle complementary products.

Accepted Answer

A) True 
 B)False

Question 19

The corporate strategy involves operating in a singular arena.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Depths of profit pools are stable within a given value-chain segment.

When an adjacent segment is profitable, it is always a good area for a firm to enter.

Where can synergies in business come from?

Reductions in average costs that result from producing two or more products jointly instead of producing them separately are called ________.

Businesses can be related along several different dimensions including all of the following except ________.

Managers can squander value through diversification.

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

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

The economic logic of diversification incorporates levers to achieve synergy and transfer knowledge between business units.

What was the impact of the Sherman Antitrust Act of 1890 on corporate diversification strategies?

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

Explain the relationship between diversification and performance.

________ 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.

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

Expanding a firm's scope does not necessarily create value for shareholders.

In some cases, firms can create values by moving into buyers' value chains if it can bundle complementary products.

The corporate strategy involves operating in a singular arena.

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

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

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

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

Depths of profit pools are stable within a given value-chain segment.

When an adjacent segment is profitable, it is always a good area for a firm to enter.

Where can synergies in business come from?

Reductions in average costs that result from producing two or more products jointly instead of producing them separately are called ________.

Businesses can be related along several different dimensions including all of the following except ________.

Managers can squander value through diversification.

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

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

The economic logic of diversification incorporates levers to achieve synergy and transfer knowledge between business units.

What was the impact of the Sherman Antitrust Act of 1890 on corporate diversification strategies?

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

Explain the relationship between diversification and performance.

________ 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.

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

Expanding a firm's scope does not necessarily create value for shareholders.

In some cases, firms can create values by moving into buyers' value chains if it can bundle complementary products.

The corporate strategy involves operating in a singular arena.

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

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