Exam 7: Developing Corporate Strategy

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

Substantial empirical evidence indicates that some forms of diversification can create significant shareholder wealth.

What is related diversification?

All of the following are possible implementation levers except ________.

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

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

Geographic expansion is typically motivated by a desire to reduce overhead costs.

What are implementation levers?

________ is achieved when the joint cash flows of two or more collectively owned business units exceed the sum of cash flows that they would generate independently.

What are the six key aspects of corporate strategy as it affects diversification decisions?

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

What are the pitfalls of increased vertical scope?

If two business units generate more revenue because they are collectively owned by a single corporate parent, the strategy of common ownership is ________.

Revenue-enhancement opportunities result from producing two or more products jointly instead of producing them separately.

Discuss the concept of coevolution.

In seeking to diversify, many firms try to acquire and ________ complementary resources and capabilities.

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.

Diversification into upstream or downstream industries is called ________.

Firms expand vertically to take advantage of ________.

Unrelated diversification is the form of diversification in which the business units that a firm operates are highly dissimilar.