Question 1

The GE business strength-industry attractiveness nine-cell matrix is a technique for classifying businesses into a three horizons portfolio of strategy of corporations.

Accepted Answer

A) True 
 B)False

Question 2

In what ways can a 'corporate centre' add value to the corporation? Is it essential to have a 'corporate centre'?

Accepted Answer

The answer of In what ways can a 'corporate centre'...

Question 3

The BCG growth-market share matrix considers the business's position in terms of its:

Accepted Answer

A) market growth relative to the largest industry competitor and of real industry size 
B) market share relative to the largest industry competitor and of real industry growth rate 
C) market size relative to the largest industry competitor and of gross domestic product 
D) market share relative to a comparable US firm and of its future growth potential

Question 4

Briefly describe the advantages claimed for the diversified corporation over the single business.

Accepted Answer

The answer of Briefly describe the advantages claimed for the...

Question 5

'Defensive managerial goals' imply diversification to focus attention on existing performance.

Accepted Answer

A) True 
 B)False

Question 6

Discuss any two advantages offered by a parent organisation to a new business.

Accepted Answer

The answer of Discuss any two advantages offered by a...

Question 7

The McKinsey model's 'three horizons' do NOT include:

Accepted Answer

A) business ideas: create viable options to convert to emerging businesses 
B) emerging business: to become major future businesses 
C) blue sky business: brainstorm and skunkworks to generate potential viable options 
D) current business: defend and extend

Question 8

What are the five factors that Collis and Montgomery argued needed to be considered for the head office role,according to specific or generalised capabilities?

Accepted Answer

The answer of What are the five factors that Collis...

Question 9

Hubbard,Rice and Galvin's definition of 'diversification' does NOT include:

Accepted Answer

A) the development of competitive scope though vertical and horizontal integration 
B) changes in its administrative structures,systems and other management processes 
C) by-processes of internal business development or acquisition 
D) the entry of a firm or business unit into new lines of activity

Question 10

What type of evidence indicates a capability-based strategy for success in diversification and which researchers have been key investigators in this area?

Accepted Answer

The answer of What type of evidence indicates a capability-based...

Question 11

The dimensions of the BCG growth-market share matrix are:

Accepted Answer

A) real industry growth and real market share 
B) real organisational growth and relative market share 
C) real industry growth and relative market share 
D) real industry profitability and relative market share

Question 12

___ is the extent to which the organisation can use the capabilities that it already has in other businesses:

Accepted Answer

A) Economies of scale 
B) Economies of scope 
C) Capability development 
D) None of the above

Question 13

Briefly discuss the four types of unrelated diversification that may create value.

Accepted Answer

The answer of Briefly discuss the four types of unrelated...

Question 14

Product development strategy allows organisations to increase market share for new products in new markets.

Accepted Answer

A) True 
 B)False

Question 15

The ways that vertical integration can create value is NOT:

Accepted Answer

A) by building barriers to entry 
B) by protecting product quality 
C) by achieving improved scheduling 
D) by trading unrelated products

Question 16

What are the possible reasons for a single business wanting to diversify?

Accepted Answer

The answer of What are the possible reasons for a...

Question 17

Diversification has been linked to the efficient allocation of capital resources in well-run conglomerates.

Accepted Answer

A) True 
 B)False

Question 18

The GE business strength-industry attractiveness matrix:

Accepted Answer

A) has 16 cells 
B) has two axes with factors determined by General Electric's CEO Jack Welsh 
C) incorporates the PIMS data gathered from a wide range of US businesses 
D) allows weights to be applied to each factor to obtain an 'objective' assessment

Question 19

Compare the BCG and GE tools and contrast their relative strengths and weaknesses as analytical devices.

Accepted Answer

The answer of Compare the BCG and GE tools and...

Question 20

'Parenting capabilities' imply that:

Accepted Answer

A) the owned businesses usually inherit 'genetic defects' from their corporate parent 
B) the current corporate owner can always create more value than a new corporate owner 
C) the owned businesses carry a form of 'corporate DNA' that determines performance 
D) the parent in a corporation can transfer to other businesses within the corporation.

Exam 9: Corporatemulti-Business Strategy

The GE business strength-industry attractiveness nine-cell matrix is a technique for classifying businesses into a three horizons portfolio of strategy of corporations.

In what ways can a 'corporate centre' add value to the corporation? Is it essential to have a 'corporate centre'?

The BCG growth-market share matrix considers the business's position in terms of its:

Briefly describe the advantages claimed for the diversified corporation over the single business.

'Defensive managerial goals' imply diversification to focus attention on existing performance.

Discuss any two advantages offered by a parent organisation to a new business.

The McKinsey model's 'three horizons' do NOT include:

What are the five factors that Collis and Montgomery argued needed to be considered for the head office role,according to specific or generalised capabilities?

Hubbard,Rice and Galvin's definition of 'diversification' does NOT include:

What type of evidence indicates a capability-based strategy for success in diversification and which researchers have been key investigators in this area?

The dimensions of the BCG growth-market share matrix are:

___ is the extent to which the organisation can use the capabilities that it already has in other businesses:

Briefly discuss the four types of unrelated diversification that may create value.

Product development strategy allows organisations to increase market share for new products in new markets.

The ways that vertical integration can create value is NOT:

What are the possible reasons for a single business wanting to diversify?

Diversification has been linked to the efficient allocation of capital resources in well-run conglomerates.

The GE business strength-industry attractiveness matrix:

Compare the BCG and GE tools and contrast their relative strengths and weaknesses as analytical devices.

'Parenting capabilities' imply that: