Question 1

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

Accepted Answer

A)  internal 
B)  industry 
C)  resource 
D)  competitor 
A)  internal 
B)  industry 
C)  resource 
D)  competitor

Question 2

How does Disney create revenue-enhancement synergies?

Accepted Answer

Consider how Disney leverages its variou

Question 3

The key to logical connection in arenas is ________.

Accepted Answer

A)  value 
B)  relatedness 
C)  resources 
D)  economics 
A)  value 
B)  relatedness 
C)  resources 
D)  economics

Question 4

Industries with relatively high ________ are among the most globalized.

Accepted Answer

A)  human resource costs 
B)  production expenditures 
C)  R&D expenditures 
D)  raw material costs 
A)  human resource costs 
B)  production expenditures 
C)  R&D expenditures 
D)  raw material costs

Question 5

When executives embark on diversification because they desire to build a larger company, they are said to be engaging in ________.

Accepted Answer

A)  risk reduction 
B)  empire building 
C)  dominant logic 
D)  scope building 
A)  risk reduction 
B)  empire building 
C)  dominant logic 
D)  scope building

Question 6

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

Accepted Answer

A)  parenting advantage 
B)  transferring capabilities 
C)  learning curves 
D)  diversification 
A)  parenting advantage 
B)  transferring capabilities 
C)  learning curves 
D)  diversification

Question 7

Business strategy and corporate strategy have very similar objectives.

Accepted Answer

A) True 
 B)False

Question 8

Relatedness is assessed by how similar the underlying industries are.

Accepted Answer

A) True 
 B)False

Question 9

Portfolio planning was not initially intended to help managers achieve a balanced portfolio of large stable businesses.

Accepted Answer

A) True 
 B)False

Question 10

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Accepted Answer

A)  economy of scale 
B)  relatedness 
C)  diversity 
D)  management 
A)  economy of scale 
B)  relatedness 
C)  diversity 
D)  management

Question 11

Different geographic markets can exhibit different degrees of relatedness.

Accepted Answer

A) True 
 B)False

Question 12

When unrelated diversification is taken to the extreme and there are many unrelated businesses, the firm is referred to as a ________.

Accepted Answer

A)  monopoly 
B)  conglomerate 
C)  oligopoly 
D)  cartel 
A)  monopoly 
B)  conglomerate 
C)  oligopoly 
D)  cartel

Question 13

Many large monopolistic companies were broken up as a result of the Great Depression.

Accepted Answer

A) True 
 B)False

Question 14

When a firm achieves economies of scope across its portfolio by bundling two outlets in a single facility, it is using ________ store strategy.

Accepted Answer

A)  vertical 
B)  multibrand 
C)  horizontal 
D)  complementary 
A)  vertical 
B)  multibrand 
C)  horizontal 
D)  complementary

Question 15

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

Accepted Answer

A)  increasing at the highest rate 
B)  increasing at the lowest rate 
C)  below the profit line 
D)  actually being made 
A)  increasing at the highest rate 
B)  increasing at the lowest rate 
C)  below the profit line 
D)  actually being made

Question 16

Two factors determine the size and organization of corporate-level management, including the scope of the firm's involvement in disparate arenas and the ________.

Accepted Answer

A)  diversity of management 
B)  organizational strategy 
C)  firm's resources 
D)  stability of the arena 
A)  diversity of management 
B)  organizational strategy 
C)  firm's resources 
D)  stability of the arena

Question 17

A ________ is a business that has a weak competitive position but is in a high-growth industry.

Accepted Answer

A)  cash cow 
B)  dog 
C)  star 
D)  problem child 
A)  cash cow 
B)  dog 
C)  star 
D)  problem child

Question 18

Why is increased horizontal scope attractive?

Accepted Answer

Increased horizontal scope is attractive

Question 19

Explain vertical scope.

Accepted Answer

Vertical scope is the extent to which a

Question 20

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

Accepted Answer

Portfolio planning is the practice of ma

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

How does Disney create revenue-enhancement synergies?

The key to logical connection in arenas is ________.

Industries with relatively high ________ are among the most globalized.

When executives embark on diversification because they desire to build a larger company, they are said to be engaging in ________.

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

Business strategy and corporate strategy have very similar objectives.

Relatedness is assessed by how similar the underlying industries are.

Portfolio planning was not initially intended to help managers achieve a balanced portfolio of large stable businesses.

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Different geographic markets can exhibit different degrees of relatedness.

When unrelated diversification is taken to the extreme and there are many unrelated businesses, the firm is referred to as a ________.

Many large monopolistic companies were broken up as a result of the Great Depression.

When a firm achieves economies of scope across its portfolio by bundling two outlets in a single facility, it is using ________ store strategy.

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

Two factors determine the size and organization of corporate-level management, including the scope of the firm's involvement in disparate arenas and the ________.

A ________ is a business that has a weak competitive position but is in a high-growth industry.

Why is increased horizontal scope attractive?

Explain vertical scope.

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

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

How does Disney create revenue-enhancement synergies?

The key to logical connection in arenas is ________.

Industries with relatively high ________ are among the most globalized.

When executives embark on diversification because they desire to build a larger company, they are said to be engaging in ________.

Two processes can generate revenue-enhancement synergy: sharing resources and ________.

Business strategy and corporate strategy have very similar objectives.

Relatedness is assessed by how similar the underlying industries are.

Portfolio planning was not initially intended to help managers achieve a balanced portfolio of large stable businesses.

The number of separate businesses a firm operates and the degree of ________ of those businesses increase a firm's level of diversification.

Different geographic markets can exhibit different degrees of relatedness.

When unrelated diversification is taken to the extreme and there are many unrelated businesses, the firm is referred to as a ________.

Many large monopolistic companies were broken up as a result of the Great Depression.

When a firm achieves economies of scope across its portfolio by bundling two outlets in a single facility, it is using ________ store strategy.

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

Two factors determine the size and organization of corporate-level management, including the scope of the firm's involvement in disparate arenas and the ________.

A ________ is a business that has a weak competitive position but is in a high-growth industry.

Why is increased horizontal scope attractive?

Explain vertical scope.

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

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