Exam 6: Corporate Strategy

What is a greenfield entry? When should a company use it?

Which of the following is an ancient Greek word for excessive pride, arrogance, or overconfidence that is used to refer to the actions of managers when they diversify or make acquisitions based on their own experience or gut feelings rather than on solid data and research?

Lee, the CEO of Libra Inc., decided that the best way to diversify this food processing company would be to set up its own small-scale beverage producing unit in a new area where its new products would have high demands. This decision by Lee best reflects a(n)_________.

Pisces Corp. is an apparel manufacturing company. It purchased a few of its raw material suppliers and set up their factories close to the clothing stores so that the company does not have to invest on transportation charges. This is an example of _________.

Pluto Corp. has been manufacturing hardware materials for its existing customer base for several years. Recently, the company introduced a new line of electronic products to its customers. Pluto Corp. is engaging in _________.

Identify a limitation of the Boston Consulting group's growth share matrix.

Explain the ways in which diversification adds value.

The movement into an adjacent, or unrelated, market that is not along a firm's own value chain defines the term _________.

In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as _________.

Spring Resources LLC creates unique value by establishing a learning organization that coordinates various production tactics and assimilates different types of technologies. This knowledge is distributed to the entire organization so that its branches can adapt and perform according to their own markets. These tactics and technologies distributed throughout the organization that create value for Spring Resources LLC are termed _________.

Which of the following statements represents related-constrained diversification?

Slack refers to _________.

What are the mechanisms that help companies in exploiting and/or expanding their resources and capabilities?

How does diversification help exploit existing customer-facing resources?

Even though companies offer varied products and provide unique value to their customers, they have similar barriers to face when entering into a host country due to policies set up by the country's government. The similarities shared by the companies in the way they set up business in the country are an example of a(n)_________.

Sparkle LLC, a beverage industry, earns almost all of its profits only by selling beverages. Sparkle LLC can be best categorized as a _________.

Which of the following statements best describes corporate strategy?

Winter Sources Inc., an apparel manufacturer, recently opened a retail store in its unused office space to sell the excess material produced. In this way, the company generated extra profits. The unused space that was available to Winter Sources Inc. is an example of _________.

The main focus of Neptune Corp. is to sell apparel, which amounts to 70 percent of its revenue. It also runs warehouses, distribution centers, and logistics as additional businesses that generate the rest of the 30 percent of the earnings. Which level of diversification is followed by Neptune Corp.?

Under which of the following conditions should a firm ideally choose the acquisition mode of entry?