Exam 6: Corporate Strategy

Virgo Inc. earns less than 70 percent of its revenue from manufacturing computers. It recently started manufacturing tablets. The company made use of existing technology and materials and decided to distribute the tablets through the same distributors used for its computers. In this scenario, Virgo Inc. chose _________.

A dominant vertical business differs from a dominant business in that a dominant business ________.

In the context of the six Ss, synergy occurs when ________.

Brentwood Industries, a furniture company, bought a supplier factory that creates raw materials for the whole range of products Brentwood manufactures. Brentwood has made sure not to look for outside sources for providing the company's raw materials. Brentwood Industries is practicing _________.

A firm earning more than 95 percent of the revenues from a single line of business is known as a ___.

Which of the following is an example of a horizontal diversification?

Elegant Meals Inc., a company that owns a chain of restaurants, sells dinnerware to its customers who fancy them. Since their restaurants are known for their interior designs, they also sell home décor products. By selling these products, Elegant Meals Inc. caters to a(n)_________.

Jupiter LLC is a manufacturer of leather items. The board of directors of Jupiter realized that it is better to produce handbags and shoes together rather than in two separate factories. This way, the company can reduce its production costs. This scenario best illustrates a(n)_________.

Movement by a firm along its own value chain in the direction of sales, service, or warranty operations is termed _________.

Azure LLC is a toy manufacturing company. The company has recently started manufacturing industrial wiring for construction companies. In this scenario, Azure LLC has chosen _________.

What are the two challenges related to acquisition premium that an acquiring firm faces when acquiring a target firm?

Which of the following statements is true of a corporate strategy?

BestBrew Corp. and True Coffee Inc. were two leading coffee manufacturing firms. They united and created a whole new firm called True Brew Inc. that used the best customer front-end and operational back-end processes of the two firms. This union is an example of a _________.

Which of the following statements is true of a dominant vertical business?

Under which of the following circumstances does diversification destroy value?

According to the Boston Consulting Group's growth share matrix, cash cows are business units that _________.

Which of the following statements is true of the sunk cost fallacy?

Saturn Inc. is an e-commerce company that sells home appliances. The firm recently started selling its line of packaged food items online. In this scenario, Saturn Inc. chose _________.

Mention the factors that lead to destroying value through diversification. Explain any three of them.

A company called Techno Plus LLC experienced a failed acquisition, but the managers of the company were hesitant to end the venture as they had already invested too much time, finances, and effort into it. They presumed that everything would work out with a little more money and time. This attitude of the managers of Techno Plus LLC can be termed _________.