Question 1

According to the text,75% of a company's market value is derived from its

Accepted Answer

A)  employees. 
B)  intangible assets. 
C)  plant assets. 
D)  joint ventures. 
E)  licensing agreements. 
A)  employees. 
B)  intangible assets. 
C)  plant assets. 
D)  joint ventures. 
E)  licensing agreements.

Question 2

Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future?

Accepted Answer

A)  horizontal integration strategy 
B)  no change strategy 
C)  retrenchment strategy 
D)  pause/proceed with caution strategy 
E)  profit strategy 
A)  horizontal integration strategy 
B)  no change strategy 
C)  retrenchment strategy 
D)  pause/proceed with caution strategy 
E)  profit strategy

Question 3

Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.

Accepted Answer

A) True 
 B)False

Question 4

According to Campbell,Goold,and Alexander,when parent companies create more value than any of their rivals would if they owned the same businesses,they have

Accepted Answer

A)  multi-point competition. 
B)  strategic advantage. 
C)  parenting advantage. 
D)  portfolio analysis. 
E)  no real advantage. 
A)  multi-point competition. 
B)  strategic advantage. 
C)  parenting advantage. 
D)  portfolio analysis. 
E)  no real advantage.

Question 5

Corporate parenting generates corporate strategy by focusing on

Accepted Answer

A)  the core competencies of the parent corporation and on the value created from the relationship between the parent and its units. 
B)  the cash flow among its business units. 
C)  whether a business unit should be growing, stabilizing, or retrenching. 
D)  acquiring distinctive competencies in the marketplace. 
E)  differentiating its activities into separate units and integrating these activities through complex integrating mechanisms. 
A)  the core competencies of the parent corporation and on the value created from the relationship between the parent and its units. 
B)  the cash flow among its business units. 
C)  whether a business unit should be growing, stabilizing, or retrenching. 
D)  acquiring distinctive competencies in the marketplace. 
E)  differentiating its activities into separate units and integrating these activities through complex integrating mechanisms.

Question 6

Which one of the following is not a characteristic of a firm that has chosen a captive company strategy?

Accepted Answer

A)  It is most appropriate for a company with a strong competitive position in a growing industry. 
B)  The firm reduces its functional activities to reduce costs. 
C)  The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales. 
D)  One of its customers makes up a large percentage of the company's sales and wants the company to keep operating as its supplier. 
E)  Management desperately seeks an "angel" to guarantee the company's continued existence. 
A)  It is most appropriate for a company with a strong competitive position in a growing industry. 
B)  The firm reduces its functional activities to reduce costs. 
C)  The firm gains a certainty of sales and production in return for becoming heavily dependent upon another firm for at least 75% of its sales. 
D)  One of its customers makes up a large percentage of the company's sales and wants the company to keep operating as its supplier. 
E)  Management desperately seeks an "angel" to guarantee the company's continued existence.

Question 7

Conglomerate diversification is diversifying into an industry unrelated to its current one.

Accepted Answer

A) True 
 B)False

Question 8

The two basic growth strategies are concentration and strategic alliances.

Accepted Answer

A) True 
 B)False

Question 9

Which strategy is considered a timeout?

Accepted Answer

A)  pause/proceed-with-caution 
B)  concentration 
C)  contraction 
D)  rebirth 
E)  captive company 
A)  pause/proceed-with-caution 
B)  concentration 
C)  contraction 
D)  rebirth 
E)  captive company

Question 10

According to the BCG Growth-Share Matrix,those products with low market share in an unattractive industry that do not have the potential to bring in much cash are called

Accepted Answer

A)  cash cows. 
B)  lost leaders. 
C)  dogs. 
D)  question marks. 
E)  stars. 
A)  cash cows. 
B)  lost leaders. 
C)  dogs. 
D)  question marks. 
E)  stars.

Question 11

Companies following a related diversification strategy appear to be higher performers and survive longer than companies with narrower scope following a pure concentration strategy.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the differences among full integration,taper integration,and quasi-integration.

Accepted Answer

A firm's level of vertical integration c

Question 13

Which strategy is an attempt to artificially support profits when a company's sales are declining by reducing investment and short-term discretionary expenditures?

Accepted Answer

A)  profit strategy 
B)  no-change strategy 
C)  turnaround strategy 
D)  concentration strategy 
E)  captive company strategy 
A)  profit strategy 
B)  no-change strategy 
C)  turnaround strategy 
D)  concentration strategy 
E)  captive company strategy

Question 14

According to the BCG Growth-Share Matrix,question marks are also known as "problem children."

Accepted Answer

A) True 
 B)False

Question 15

If a new business is very similar to that of the acquiring firm,it adds little new to the corporation and only marginally improves performance.

Accepted Answer

A) True 
 B)False

Question 16

Horizontal growth can be achieved by expanding the firm's products into other geographic locations and/or by increasing the range of products and services offered to current markets.

Accepted Answer

A) True 
 B)False

Question 17

Adding a related or complementary product to a corporation's business units is called

Accepted Answer

A)  concentration. 
B)  horizontal growth. 
C)  concentric diversification. 
D)  vertical growth. 
E)  conglomerate diversification. 
A)  concentration. 
B)  horizontal growth. 
C)  concentric diversification. 
D)  vertical growth. 
E)  conglomerate diversification.

Question 18

A disadvantage of vertical integration is that it

Accepted Answer

A)  creates exit barriers. 
B)  improves coordination of activities. 
C)  decreases demand for the firm's products and services. 
D)  creates entry barriers. 
E)  avoids time consuming tasks. 
A)  creates exit barriers. 
B)  improves coordination of activities. 
C)  decreases demand for the firm's products and services. 
D)  creates entry barriers. 
E)  avoids time consuming tasks.

Question 19

According to the BCG Growth-Share Matrix,the key to success with this model is

Accepted Answer

A)  effective management. 
B)  competitive positioning. 
C)  innovative initiative. 
D)  industry growth. 
E)  market share leadership. 
A)  effective management. 
B)  competitive positioning. 
C)  innovative initiative. 
D)  industry growth. 
E)  market share leadership.

Question 20

One of the most popular aids to developing corporate strategy in multi-business corporations that views business units in terms of the cash they generate is called

Accepted Answer

A)  PIMS. 
B)  segmentation analysis. 
C)  portfolio analysis. 
D)  industry analysis. 
E)  diversification study. 
A)  PIMS. 
B)  segmentation analysis. 
C)  portfolio analysis. 
D)  industry analysis. 
E)  diversification study.

According to the text,75% of a company's market value is derived from its

Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future?

Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.

According to Campbell,Goold,and Alexander,when parent companies create more value than any of their rivals would if they owned the same businesses,they have

Corporate parenting generates corporate strategy by focusing on

Which one of the following is not a characteristic of a firm that has chosen a captive company strategy?

Conglomerate diversification is diversifying into an industry unrelated to its current one.

The two basic growth strategies are concentration and strategic alliances.

Which strategy is considered a timeout?

According to the BCG Growth-Share Matrix,those products with low market share in an unattractive industry that do not have the potential to bring in much cash are called

Companies following a related diversification strategy appear to be higher performers and survive longer than companies with narrower scope following a pure concentration strategy.

Discuss the differences among full integration,taper integration,and quasi-integration.

Which strategy is an attempt to artificially support profits when a company's sales are declining by reducing investment and short-term discretionary expenditures?

According to the BCG Growth-Share Matrix,question marks are also known as "problem children."

If a new business is very similar to that of the acquiring firm,it adds little new to the corporation and only marginally improves performance.

Horizontal growth can be achieved by expanding the firm's products into other geographic locations and/or by increasing the range of products and services offered to current markets.

Adding a related or complementary product to a corporation's business units is called

A disadvantage of vertical integration is that it

According to the BCG Growth-Share Matrix,the key to success with this model is

One of the most popular aids to developing corporate strategy in multi-business corporations that views business units in terms of the cash they generate is called

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 7: Strategy Formulation: Corporate Strategy

According to the text,75% of a company's market value is derived from its

Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future?

Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.

According to Campbell,Goold,and Alexander,when parent companies create more value than any of their rivals would if they owned the same businesses,they have

Corporate parenting generates corporate strategy by focusing on

Which one of the following is not a characteristic of a firm that has chosen a captive company strategy?

Conglomerate diversification is diversifying into an industry unrelated to its current one.

The two basic growth strategies are concentration and strategic alliances.

Which strategy is considered a timeout?

According to the BCG Growth-Share Matrix,those products with low market share in an unattractive industry that do not have the potential to bring in much cash are called

Companies following a related diversification strategy appear to be higher performers and survive longer than companies with narrower scope following a pure concentration strategy.

Discuss the differences among full integration,taper integration,and quasi-integration.

Which strategy is an attempt to artificially support profits when a company's sales are declining by reducing investment and short-term discretionary expenditures?

According to the BCG Growth-Share Matrix,question marks are also known as "problem children."

If a new business is very similar to that of the acquiring firm,it adds little new to the corporation and only marginally improves performance.

Horizontal growth can be achieved by expanding the firm's products into other geographic locations and/or by increasing the range of products and services offered to current markets.

Adding a related or complementary product to a corporation's business units is called

A disadvantage of vertical integration is that it

According to the BCG Growth-Share Matrix,the key to success with this model is

One of the most popular aids to developing corporate strategy in multi-business corporations that views business units in terms of the cash they generate is called

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters