Question 1

Summarize the disadvantages of mergers and acquisitions as a means of diversification.

Accepted Answer

There are many potential downsides assoc...

Question 2

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

Accepted Answer

A)   the similarity required for sharing core competencies must be in the value chain, not in the product.
B)   the products use similar distribution channels.
C)   the target market is the same, even if the products are very different.
D)   the methods of production are the same.E) A) and C)
F) A) and B)

Question 3

Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

Accepted Answer

A) True 
 B)False

Question 4

Explain how consolidating an industry can increase a firm's market power.

Accepted Answer

Answers will vary. Some of the factors i...

Question 5

Carefully explain 'poison pills' as an anti-takeover tactic.

Accepted Answer

Poison pills, or shareholder rights plan...

Question 6

Carefully explain 'greenmail' as an anti-takeover tactic..

Accepted Answer

Greenmail is an effort by the target fir...

Question 7

In terms of strategy evaluation, which of the following terms refers to the fit between the corporate-level strategy and the external environment?

Accepted Answer

A)   Consistency
B)   Consonance
C)   Advantage
D)   FeasibilityE) None of the above
F) A) and B)

Question 8

An anti-takeover tactic called a ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it.

Accepted Answer

A)   golden parachute
B)   greenmail
C)   poison pill
D)   scorched earthE) A) and B)
F) A) and C)

Question 9

It may be advantageous to vertically integrate when

Accepted Answer

A)   lower transaction costs and improved coordination are vital and achievable.
B)   the minimum efficient scales of two corporations are different.
C)   flexibility is reduced, providing a more stationary position in the competitive environment.
D)   various segregated specializations will be combined.E) B) and C)
F) C) and D)

Question 10

The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies.

Accepted Answer

A) True 
 B)False

Question 11

Through joint ventures, firms can directly acquire the assets and competencies of other firms.

Accepted Answer

A) True 
 B)False

Question 12

For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements?

Accepted Answer

A)   The competence must help the business gain strength relative to its competition.
B)   The new business must be similar to existing businesses to benefit from a core competence.
C)   The collection of competencies should be unique, so that they cannot be easily imitated.
D)   The new business must have an established large market share.E) A) and D)
F) C) and D)

Question 13

Risk reduction in and of itself is rarely a viable way to create shareholder value.

Accepted Answer

A) True 
 B)False

Question 14

Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other)  costs in the value chain, and developing and diffusing new technologies.

Accepted Answer

A)   joint ventures
B)   mergers and acquisitions
C)   strategic alliances
D)   joint ventures and strategic alliancesE) None of the above
F) A) and B)

Question 15

A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.

Accepted Answer

A) True 
 B)False

Question 16

When using the BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow is described as a:

Accepted Answer

A)   cow.
B)   dog.
C)   problem child.
D)   star.E) A) and C)
F) B) and D)

Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

Explain how consolidating an industry can increase a firm's market power.

Correct Answer
verified
Answers will vary. Some of the factors i...
View Answer

The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies.

Correct Answer
verified

Carefully explain 'greenmail' as an anti-takeover tactic..

Correct Answer
verified
Greenmail is an effort by the target fir...
View Answer

An anti-takeover tactic called a ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it.

Correct Answer
verified

It may be advantageous to vertically integrate when

Correct Answer
verified

For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements?

Correct Answer
verified

In terms of strategy evaluation, which of the following terms refers to the fit between the corporate-level strategy and the external environment?

Correct Answer
verified

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

Correct Answer
verified

Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

Correct Answer
verified

Through joint ventures, firms can directly acquire the assets and competencies of other firms.

Correct Answer
verified

Summarize the disadvantages of mergers and acquisitions as a means of diversification.

Correct Answer
verified
There are many potential downsides assoc...
View Answer

Carefully explain 'poison pills' as an anti-takeover tactic.

Correct Answer
verified
Poison pills, or shareholder rights plan...
View Answer

A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.

Correct Answer
verified

Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies.

Correct Answer
verified

Risk reduction in and of itself is rarely a viable way to create shareholder value.

Correct Answer
verified

When using the BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow is described as a:

Correct Answer
verified

Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

Explain how consolidating an industry can increase a firm's market power.

Correct AnswerverifiedAnswers will vary. Some of the factors i...View AnswerShow Answer

The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies.

Correct AnswerverifiedShow Answer

Carefully explain 'greenmail' as an anti-takeover tactic..

Correct AnswerverifiedGreenmail is an effort by the target fir...View AnswerShow Answer

An anti-takeover tactic called a ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it.

Correct AnswerverifiedShow Answer

It may be advantageous to vertically integrate when

Correct AnswerverifiedShow Answer

For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements?

Correct AnswerverifiedShow Answer

In terms of strategy evaluation, which of the following terms refers to the fit between the corporate-level strategy and the external environment?

Correct AnswerverifiedShow Answer

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

Correct AnswerverifiedShow Answer

Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

Correct AnswerverifiedShow Answer

Through joint ventures, firms can directly acquire the assets and competencies of other firms.

Correct AnswerverifiedShow Answer

Summarize the disadvantages of mergers and acquisitions as a means of diversification.

Correct AnswerverifiedThere are many potential downsides assoc...View AnswerShow Answer

Carefully explain 'poison pills' as an anti-takeover tactic.

Correct AnswerverifiedPoison pills, or shareholder rights plan...View AnswerShow Answer

A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.

Correct AnswerverifiedShow Answer

Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies.

Correct AnswerverifiedShow Answer

Risk reduction in and of itself is rarely a viable way to create shareholder value.

Correct AnswerverifiedShow Answer

When using the BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow is described as a:

Correct AnswerverifiedShow Answer

Correct Answer
verified
Answers will vary. Some of the factors i...
View Answer

Correct Answer
verified

Correct Answer
verified
Greenmail is an effort by the target fir...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are many potential downsides assoc...
View Answer

Correct Answer
verified
Poison pills, or shareholder rights plan...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified