Question 1

Corporate strategy addresses issues-related decisions about entering or exiting an industry.

Accepted Answer

A) True 
 B)False

Question 2

A "dog" is a business that has a very strong competitive position, but is in a slow-growth industry.

Accepted Answer

A) True 
 B)False

Question 3

Business history is full of stories of successful growth and diversification strategies.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Common core competencies are the unique resources and knowledge that a company's management must consider when developing strategy.

Accepted Answer

A) True 
 B)False

Question 6

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

Accepted Answer

A) True 
 B)False

Question 7

Moving "upstream" in an industry value chain will draw firms closer to the source of needed raw materials.

Accepted Answer

A) True 
 B)False

Question 8

A tool that helps managers identify the size of value-chain segments and the attractiveness of each segment is called the ________ pool.

Accepted Answer

A)  revenue 
B)  expense 
C)  profit 
D)  net 
A)  revenue 
B)  expense 
C)  profit 
D)  net

Question 9

What are some of the possible options for a firm that wants to expand the scope of its operations?

Accepted Answer

A firm that wants to expand th

Question 10

Managers may have self-serving motives for diversification.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  In which business arenas should a company compete? 
B)  How many different strategic options are available? 
C)  How can we add value to our various lines of business? 
D)  How will entry into a new industry help us compete in our other businesses? 
A)  In which business arenas should a company compete? 
B)  How many different strategic options are available? 
C)  How can we add value to our various lines of business? 
D)  How will entry into a new industry help us compete in our other businesses?

Question 12

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

Accepted Answer

A)  they rely on similar types of human capital 
B)  they share customers with similar needs 
C)  they vary in terms of resources and capabilities 
D)  they engage in similar value-chain activities 
A)  they rely on similar types of human capital 
B)  they share customers with similar needs 
C)  they vary in terms of resources and capabilities 
D)  they engage in similar value-chain activities

Question 13

List the three questions that effective corporate strategists must consider.

Accepted Answer

1. In which business arenas should a com

Question 14

All of the following are possible self-serving motives for diversification except ________.

Accepted Answer

A)  shareholder value 
B)  risk reduction 
C)  empire building 
D)  compensation 
A)  shareholder value 
B)  risk reduction 
C)  empire building 
D)  compensation

Question 15

At the ________ level, competitive advantage reflects management's success in creating more value from the firm's business units than those units could create as stand-alone enterprises.

Accepted Answer

A)  industry 
B)  corporate 
C)  business 
D)  subsidiary 
A)  industry 
B)  corporate 
C)  business 
D)  subsidiary

Question 16

Synergy is the condition in which the combined benefits of multiple activities are greater than the simple sum of those benefits.

Accepted Answer

A) True 
 B)False

Question 17

Synergies can come from all of the following except ________.

Accepted Answer

A)  varied business missions 
B)  shared tangible resources 
C)  vertical integration 
D)  pooled negotiating power 
A)  varied business missions 
B)  shared tangible resources 
C)  vertical integration 
D)  pooled negotiating power

Question 18

All but which of the following can impede management's designs to create synergies?

Accepted Answer

A)  bureaucratic costs 
B)  transaction costs 
C)  complexity 
D)  simplicity 
A)  bureaucratic costs 
B)  transaction costs 
C)  complexity 
D)  simplicity

Question 19

Investors can make reasonable estimates of a business unit's potential independent value by using ________ ratios.

Accepted Answer

A)  revenue to cost 
B)  price to earnings 
C)  human resource costs to price 
D)  price to cost 
A)  revenue to cost 
B)  price to earnings 
C)  human resource costs to price 
D)  price to cost

Question 20

Using Ford Motor Company, give examples of possible vertical integration.

Accepted Answer

Ford Motor Company may move "upstream" i

Corporate strategy addresses issues-related decisions about entering or exiting an industry.

A "dog" is a business that has a very strong competitive position, but is in a slow-growth industry.

Business history is full of stories of successful growth and diversification strategies.

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

Common core competencies are the unique resources and knowledge that a company's management must consider when developing strategy.

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

Moving "upstream" in an industry value chain will draw firms closer to the source of needed raw materials.

A tool that helps managers identify the size of value-chain segments and the attractiveness of each segment is called the ________ pool.

What are some of the possible options for a firm that wants to expand the scope of its operations?

Managers may have self-serving motives for diversification.

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

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

List the three questions that effective corporate strategists must consider.

All of the following are possible self-serving motives for diversification except ________.

At the ________ level, competitive advantage reflects management's success in creating more value from the firm's business units than those units could create as stand-alone enterprises.

Synergy is the condition in which the combined benefits of multiple activities are greater than the simple sum of those benefits.

Synergies can come from all of the following except ________.

All but which of the following can impede management's designs to create synergies?

Investors can make reasonable estimates of a business unit's potential independent value by using ________ ratios.

Using Ford Motor Company, give examples of possible vertical integration.

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

Corporate strategy addresses issues-related decisions about entering or exiting an industry.

A "dog" is a business that has a very strong competitive position, but is in a slow-growth industry.

Business history is full of stories of successful growth and diversification strategies.

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

Common core competencies are the unique resources and knowledge that a company's management must consider when developing strategy.

Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.

Moving "upstream" in an industry value chain will draw firms closer to the source of needed raw materials.

A tool that helps managers identify the size of value-chain segments and the attractiveness of each segment is called the ________ pool.

What are some of the possible options for a firm that wants to expand the scope of its operations?

Managers may have self-serving motives for diversification.

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

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

List the three questions that effective corporate strategists must consider.

All of the following are possible self-serving motives for diversification except ________.

At the ________ level, competitive advantage reflects management's success in creating more value from the firm's business units than those units could create as stand-alone enterprises.

Synergy is the condition in which the combined benefits of multiple activities are greater than the simple sum of those benefits.

Synergies can come from all of the following except ________.

All but which of the following can impede management's designs to create synergies?

Investors can make reasonable estimates of a business unit's potential independent value by using ________ ratios.

Using Ford Motor Company, give examples of possible vertical integration.

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