Question 1

Activities that corporations can pursue to develop core capabilities and competencies include all of the following except _____.

Accepted Answer

A)  diversification 
B)  attracting and retraining competent managers 
C)  improvement in R&D capabilities 
D)  effective tax management 
E)  better relations with special interest groups such as environmentalists 
A)  diversification 
B)  attracting and retraining competent managers 
C)  improvement in R&D capabilities 
D)  effective tax management 
E)  better relations with special interest groups such as environmentalists A

Question 2

Einstein Bros. Bagels secured a strong presence on the West Coast by acquiring Noah's New York Bagels. The purchase of Finagle A. Bagel, a three-unit chain based in Boston gives it a foothold on the East Coast. What type of corporate strategy would you call this?

Accepted Answer

A)  Horizontal integration 
B)  Vertical integration 
C)  Related diversification 
D)  Unrelated diversification 
E)  Conglomerate 
A)  Horizontal integration 
B)  Vertical integration 
C)  Related diversification 
D)  Unrelated diversification 
E)  Conglomerate C

Question 3

Porter's research on mergers and acquisitions has found that _____.

Accepted Answer

A)  acquisitions have an immediate positive impact on corporate performance 
B)  acquisitions have no immediate impact on corporate performance 
C)  acquisitions have an immediate negative impact on corporate performance 
D)  corporations divested more of the acquisitions than they kept 
E)  corporations kept almost all of the firms acquired by the corporation 
A)  acquisitions have an immediate positive impact on corporate performance 
B)  acquisitions have no immediate impact on corporate performance 
C)  acquisitions have an immediate negative impact on corporate performance 
D)  corporations divested more of the acquisitions than they kept 
E)  corporations kept almost all of the firms acquired by the corporation D

Question 4

The benefits of an acquisition include all of the following except _____.

Accepted Answer

A)  a quick means to enter a new market 
B)  acquiring knowledge 
C)  broadening markets geographically 
D)  preventing industry consolidation 
E)  filling in needs in the corporate portfolio 
A)  a quick means to enter a new market 
B)  acquiring knowledge 
C)  broadening markets geographically 
D)  preventing industry consolidation 
E)  filling in needs in the corporate portfolio

Question 5

Describe the BCG Matrix and the various cells in the model.

Accepted Answer

The BCG Matrix is based on business grow

Question 6

Differentiate between tangible and intangible relatedness.

Accepted Answer

a. Tangible relatedness means that the o

Question 7

A fish and seafood restaurant buying a catfish farm is an example of:

Accepted Answer

A)  Forward integration 
B)  Backward integration 
C)  Horizontal integration 
D)  Concentric diversification 
E)  Market development 
A)  Forward integration 
B)  Backward integration 
C)  Horizontal integration 
D)  Concentric diversification 
E)  Market development

Question 8

Concentration refers to _____.

Accepted Answer

A)  virtually all of a firm's resource investments in a single business area 
B)  diversification that stems from common markets, functions served, markets or technologies 
C)  diversification that is not based on commonality among the activities of a corporation 
D)  reducing the firm's business definition combined with refocusing on things that the firm does well 
E)  involvement in multiple stages of the industry supply chain 
A)  virtually all of a firm's resource investments in a single business area 
B)  diversification that stems from common markets, functions served, markets or technologies 
C)  diversification that is not based on commonality among the activities of a corporation 
D)  reducing the firm's business definition combined with refocusing on things that the firm does well 
E)  involvement in multiple stages of the industry supply chain

Question 9

Successful firms in a given industry _____.

Accepted Answer

A)  will pursue a very similar strategy 
B)  do not pursue vertical integration 
C)  pursue internationalization 
D)  are first movers 
E)  may pursue a wide variety of strategies 
A)  will pursue a very similar strategy 
B)  do not pursue vertical integration 
C)  pursue internationalization 
D)  are first movers 
E)  may pursue a wide variety of strategies

Question 10

The problems that can impact a merger or acquisition negatively include all of the following except _____.

Accepted Answer

A)  increased interest costs 
B)  poison pills 
C)  high turnover among managers of the acquired firm 
D)  cultural similarities 
E)  increased risk 
A)  increased interest costs 
B)  poison pills 
C)  high turnover among managers of the acquired firm 
D)  cultural similarities 
E)  increased risk

Question 11

All of the following are potential sources of synergy from related diversification except _____.

Accepted Answer

A)  common parts designs 
B)  shared R&D programs 
C)  financial portfolio model 
D)  shared distribution channels 
E)  similar industry experience 
A)  common parts designs 
B)  shared R&D programs 
C)  financial portfolio model 
D)  shared distribution channels 
E)  similar industry experience

Question 12

Stars in a BCG grid represent _____.

Accepted Answer

A)  high business growth rates and low relative market share 
B)  high business growth rates and high relative market share 
C)  high relative market share and low business growth rate 
D)  low relative market share and low business growth rate 
E)  those units that should be sold 
A)  high business growth rates and low relative market share 
B)  high business growth rates and high relative market share 
C)  high relative market share and low business growth rate 
D)  low relative market share and low business growth rate 
E)  those units that should be sold

Question 13

The advantages of vertical integration include all of the following except _____.

Accepted Answer

A)  avoiding excess capacity at different levels of integration 
B)  reducing duplicate overhead 
C)  controlling inventory needs 
D)  avoiding price shopping 
E)  improving competitive intelligence 
A)  avoiding excess capacity at different levels of integration 
B)  reducing duplicate overhead 
C)  controlling inventory needs 
D)  avoiding price shopping 
E)  improving competitive intelligence

Question 14

The benefits associated with synergy are greatest when _____.

Accepted Answer

A)  the cost related to corporate level administration is lowest 
B)  the cost related to corporate level administration is not changed 
C)  the cost related to corporate level administration is greatest 
D)  unrelated diversification is justified 
E)  the top management team must be supportive of diversification 
A)  the cost related to corporate level administration is lowest 
B)  the cost related to corporate level administration is not changed 
C)  the cost related to corporate level administration is greatest 
D)  unrelated diversification is justified 
E)  the top management team must be supportive of diversification

Question 15

In general, evidence suggests that downsizing _____.

Accepted Answer

A)  reduces expenses and helps the organization tremendously 
B)  reduces expenses and helps the organization slightly 
C)  does not cut expenses and frequently expenses actually rise 
D)  reduces expenses but does not help the organization much 
E)  rarely occurs 
A)  reduces expenses and helps the organization tremendously 
B)  reduces expenses and helps the organization slightly 
C)  does not cut expenses and frequently expenses actually rise 
D)  reduces expenses but does not help the organization much 
E)  rarely occurs

Question 16

The benefits of the concentration corporate level strategy include all of the following except _____.

Accepted Answer

A)  allowing the firm to master one business 
B)  allowing managers to develop an in-depth knowledge of the business 
C)  better positioning to develop the resources and capabilities necessary to establish competitive advantage 
D)  helping the firm overcome any instability in industry 
E)  less ambiguity about strategic direction 
A)  allowing the firm to master one business 
B)  allowing managers to develop an in-depth knowledge of the business 
C)  better positioning to develop the resources and capabilities necessary to establish competitive advantage 
D)  helping the firm overcome any instability in industry 
E)  less ambiguity about strategic direction

Question 17

The term Chapter XI refers to _____.

Accepted Answer

A)  the summary chapter of this text 
B)  the concept from the chapter of Porter's book that refers to the overriding importance of strategy to firm success 
C)  a legal filing necessary for a merger or acquisition to be completed 
D)  a legal filing necessary for an IPO to occur 
E)  a legal filing that allows a firm to reorganize while it solves its financial problems 
A)  the summary chapter of this text 
B)  the concept from the chapter of Porter's book that refers to the overriding importance of strategy to firm success 
C)  a legal filing necessary for a merger or acquisition to be completed 
D)  a legal filing necessary for an IPO to occur 
E)  a legal filing that allows a firm to reorganize while it solves its financial problems

Question 18

The Boston Consulting Group matrix is based on which two factors?

Accepted Answer

A)  Business growth rate and relative market share 
B)  Business growth rate and industry attractiveness 
C)  Relative market share and competitive position 
D)  Industry attractiveness and competitive position 
E)  Cash cows and dogs 
A)  Business growth rate and relative market share 
B)  Business growth rate and industry attractiveness 
C)  Relative market share and competitive position 
D)  Industry attractiveness and competitive position 
E)  Cash cows and dogs

Question 19

A successful bankruptcy filing requires all of the following characteristics except _____.

Accepted Answer

A)  a realistic assessment of financial problems by management 
B)  the ability to move quickly so that court approval is not necessary 
C)  a willingness to incur the professional fees that are necessary for reorganization 
D)  the formulation of a plan that is acceptable to most creditors 
E)  a creditor group that is willing to negotiate 
A)  a realistic assessment of financial problems by management 
B)  the ability to move quickly so that court approval is not necessary 
C)  a willingness to incur the professional fees that are necessary for reorganization 
D)  the formulation of a plan that is acceptable to most creditors 
E)  a creditor group that is willing to negotiate

Question 20

Corporate raiders participate in _____.

Accepted Answer

A)  related acquisitions 
B)  friendly acquisitions 
C)  hostile acquisitions 
D)  unrelated acquisitions 
E)  vertical acquisitions 
A)  related acquisitions 
B)  friendly acquisitions 
C)  hostile acquisitions 
D)  unrelated acquisitions 
E)  vertical acquisitions

Activities that corporations can pursue to develop core capabilities and competencies include all of the following except _____.

Einstein Bros. Bagels secured a strong presence on the West Coast by acquiring Noah's New York Bagels. The purchase of Finagle A. Bagel, a three-unit chain based in Boston gives it a foothold on the East Coast. What type of corporate strategy would you call this?

Porter's research on mergers and acquisitions has found that _____.

The benefits of an acquisition include all of the following except _____.

Describe the BCG Matrix and the various cells in the model.

Differentiate between tangible and intangible relatedness.

A fish and seafood restaurant buying a catfish farm is an example of:

Concentration refers to _____.

Successful firms in a given industry _____.

The problems that can impact a merger or acquisition negatively include all of the following except _____.

All of the following are potential sources of synergy from related diversification except _____.

Stars in a BCG grid represent _____.

The advantages of vertical integration include all of the following except _____.

The benefits associated with synergy are greatest when _____.

In general, evidence suggests that downsizing _____.

The benefits of the concentration corporate level strategy include all of the following except _____.

The term Chapter XI refers to _____.

The Boston Consulting Group matrix is based on which two factors?

A successful bankruptcy filing requires all of the following characteristics except _____.

Corporate raiders participate in _____.

Strategic Management

The Environment and External Stakeholders

Strategic Direction

Organizational Resources and Competitive Advantage

Strategy Formulation at the Business-Unit Level

Strategy Implementation Through Interorganizational Relationships and Management of Functional Resources

Strategy Implementation Through Organizational Design and Control

Strategies for Entrepreneurship and Innovation

Global Strategic Management and the Future

Filters

Exam 6: Corporate-Level Strategy and Restructuring

Activities that corporations can pursue to develop core capabilities and competencies include all of the following except _____.

Einstein Bros. Bagels secured a strong presence on the West Coast by acquiring Noah's New York Bagels. The purchase of Finagle A. Bagel, a three-unit chain based in Boston gives it a foothold on the East Coast. What type of corporate strategy would you call this?

Porter's research on mergers and acquisitions has found that _____.

The benefits of an acquisition include all of the following except _____.

Describe the BCG Matrix and the various cells in the model.

Differentiate between tangible and intangible relatedness.

A fish and seafood restaurant buying a catfish farm is an example of:

Concentration refers to _____.

Successful firms in a given industry _____.

The problems that can impact a merger or acquisition negatively include all of the following except _____.

All of the following are potential sources of synergy from related diversification except _____.

Stars in a BCG grid represent _____.

The advantages of vertical integration include all of the following except _____.

The benefits associated with synergy are greatest when _____.

In general, evidence suggests that downsizing _____.

The benefits of the concentration corporate level strategy include all of the following except _____.

The term Chapter XI refers to _____.

The Boston Consulting Group matrix is based on which two factors?

A successful bankruptcy filing requires all of the following characteristics except _____.

Corporate raiders participate in _____.

Strategic Management

The Environment and External Stakeholders

Strategic Direction

Organizational Resources and Competitive Advantage

Strategy Formulation at the Business-Unit Level

Strategy Implementation Through Interorganizational Relationships and Management of Functional Resources

Strategy Implementation Through Organizational Design and Control

Strategies for Entrepreneurship and Innovation

Global Strategic Management and the Future

Filters