FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Developing Corporate Strategy

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Essay

Review LaterAdd Note

Review Later

Some of the more important levers to achieve successful diversification include knowledge-transfer mechanisms, coordination mechanisms, rewards, and corporate oversight. Discuss the benefits of knowledge transfer.

Correct Answer

verified

Knowledge transfer enables a diversified...

View Answer

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Economies of scope and synergy are collectively referred to as revenue-enhancement opportunities.

Correct Answer

verified

False

Question 3

Multiple Choice

Review LaterAdd Note

Diversification into upstream or downstream industries is called ________.

The profit pool incorporates key complementary businesses near the point at which a firm is directly involved in customer transactions.

The economic logic of diversification incorporates levers to achieve synergy and transfer knowledge between business units.

When strategists think about a proposed diversification move, they must assess the extent to which their firm's resources and capabilities match the ________.

The corporate strategy involves operating in a singular arena.

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

Businesses can be related along several different dimensions including all of the following except ________.

Increased horizontal scope is attractive to firms because it offers opportunities by reducing costs through exploiting possible economies of scope and by ________.

Whenever a common resource can be used across more than one business unit, the company will always generate enhanced shareholder value.

Managers can squander value through diversification.

As a result of the Sherman Antitrust Act of 1890, many large firms began expanding into areas unrelated to their core businesses.

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

The success with which diversified firms are managed in harmony with key organizational features has a significant effect on the level of value that can be created through their portfolios.

Business strategy and corporate strategy have very similar objectives.

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.

The profit pool reminds us that profit and revenue concentration usually occur at the same place in an industry.

Expanding a firm's scope does not necessarily create value for shareholders.

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary ________ and ________.