Exam 7: Developing Corporate Strategy

At the ________ level, competitive advantage reflects the relative position of a firm compared to positions of industry rivals.

The form of diversification in which the business units operated by a firm are highly related is called ________.

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

Segment profitability may vary widely by product group.

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

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

Revenue-enhancement synergy may result from a variety of tactics, including ________.

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

Firms typically enter arenas randomly, without much logic.

When there are many businesses and they are largely unrelated, the firm is referred to as a conglomerate.

What are the two dimensions that intersect to exploit potential economies of scope and revenue-enhancement synergies?

What are the two ways in which a firm may increase its horizontal scope?

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.

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

When the collective market value of a firm exceeds the independent market values of the firm's portfolio of business units, financial markets recognize the existence of a ________.

What tactics result in economies of scope?

What are some of the limits of diversification benefits?

Most publicly traded firms are single-business operations.

Portfolio planning dictated that "cash cows" should not be maintained, but "dogs" should be.

Corporate-level strategy must maintain strategic coherence across business units to create value for shareholders.