Question 1

The Coca-Cola acquisition of its bottlers failed because

Accepted Answer

A)  Coca-Cola had valuable competencies.
B)  the bottling business required too much capital investment and time.
C)  consumers consumed less because the distribution channel changed.
D)  Coca-Cola spent less money on the distribution of concentrates and syrups.E) None of the above
F) A) and D)

Question 2

Many leading high-tech firms such as Google,Apple,and Intel have dramatically enhanced their revenues,profits,and market values through a wide variety of diversification initiatives.Which of the following is not such an initiative?

Accepted Answer

A)  acquisitions
B)  strategic alliances
C)  stockholder enhancement
D)  joint venturesE) A) and D)
F) All of the above

Question 3

Polaris,a manufacturer of snowmobiles,motorcycles,watercraft,and off-road vehicles,shares manufacturing operations across its businesses.It also has a corporate research and development facility and staff departments that support all the Polaris operating divisions.This is an example of creating value by using

Accepted Answer

A)  related diversification to acquire market value by leveraging core competencies.
B)  related diversification to acquire economies of scope by sharing.
C)  unrelated diversification to acquire financial synergies through portfolio management.
D)  related diversification to acquire parenting,restructuring,and financial synergies through corporate restructuring and parenting.E) All of the above
F) C) and D)

Question 4

When a firm diversifies into ________ businesses,the primary potential benefits to be derived come from ________ relationships where value creation is derived from the corporate office.

Accepted Answer

A)  unrelated;hierarchical
B)  related;hierarchical
C)  related;horizontal
D)  unrelated;horizontalE) A) and B)
F) A) and C)

Question 5

Which of the following statements regarding internal development as a means of diversification is false?

Accepted Answer

A)  Many companies use internal development to extend their product or service offers.
B)  An advantage of internal development is that it is generally faster than other means of diversification.
C)  The firm can capture wealth created without having to share the wealth with alliance partners.
D)  Firms can often develop products or services at a lower cost if they rely on their own resources instead of external funding.E) A) and D)
F) A) and B)

Question 6

Through joint ventures,firms can directly acquire the assets and competencies of other firms.

Accepted Answer

A) True 
 B)False

Question 7

When management uses common production facilities or purchasing procedures to distribute different but related products,they are

Accepted Answer

A)  building on core competencies.
B)  achieving process gains.
C)  using portfolio analysis.
D)  sharing activities.E) A) and C)
F) B) and C)

Question 8

A cash cow,in the BCG framework,refers to a business that has

Accepted Answer

A)  high market growth and relatively high market share.
B)  relatively low market share and low market growth.
C)  relatively low market share and high market growth.
D)  low market growth and relatively high market share.E) B) and D)
F) All of the above

Question 9

AOL purchased Time Warner for 114 billion USD in 2001.By 2003,AOL Time Warner had lost 150 billion USD in market valuation.This is an example of a

Accepted Answer

A)  good expansion.
B)  reasonable divestiture.
C)  cost savings strategy.
D)  failed acquisition.E) C) and D)
F) B) and D)

Question 10

Corporate-level strategy focuses on

Accepted Answer

A)  gaining long-term revenue.
B)  gaining short-term profits.
C)  decreasing business locations.
D)  managing investment bankers and their interests.E) A) and B)
F) None of the above

Question 11

Factors that directly affect the merger and acquisition environment include all the following except

Accepted Answer

A)  general economic conditions.
B)  level of optimism about the future.
C)  currency fluctuations.
D)  managerial style.E) None of the above
F) B) and C)

Question 12

According to the text,corporate restructuring includes

Accepted Answer

A)  capital restructuring,asset restructuring,and technology restructuring.
B)  capital restructuring,asset restructuring,and management restructuring.
C)  management restructuring,financial restructuring,and procurement restructuring.
D)  global diversification,capital restructuring,and asset restructuring.E) A) and B)
F) A) and C)

Question 13

In the BCG Matrix,a ________ is a business that has a low market share in an industry characterized by high market growth.

Accepted Answer

A)  star
B)  cash cow
C)  question mark
D)  dogE) A) and B)
F) A) and C)

Question 14

Which of the following is not part of a good guideline list for managing strategic alliances?

Accepted Answer

A)  establishing a clear understanding between partners
B)  not shortchanging your partner
C)  relying primarily on a contract to make the joint venture work
D)  working hard to ensure a collaborative relationship between partnersE) A) and B)
F) B) and C)

Question 15

In managing the corporate portfolio,the BCG matrix would suggest that

Accepted Answer

A)  dogs should be invested in to increase market share and become cash cows.
B)  stars are in low growth markets and can provide excess cash to fund other opportunities.
C)  cash cows require substantial cash outlays to maintain market share.
D)  question marks can represent future stars if their market share is increased.E) B) and C)
F) None of the above

Question 16

3M leverages its competencies in adhesives technologies to many industries,including automotive,construction,and telecommunications.This is an example of creating value by using

Accepted Answer

A)  related diversification to acquire economies of scope by leveraging pooled negotiating power.
B)  unrelated diversification to financial synergies through portfolio management.
C)  related diversification to acquire economies of scope by leveraging core competencies.
D)  unrelated diversification to parenting,restructuring,and financial synergies through restructuring and parenting.E) A) and B)
F) All of the above

Question 17

Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?

Accepted Answer

Feedback: Discuss what businesses a corp...

Question 18

Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.

Accepted Answer

Feedback: Unfriendly or hostile takeover...

Question 19

Cisco Systems,a computer networking firm,has undertaken over 80 acquisitions in the last decade.It uses these acquisitions to acquire ________ that will permit it to expand its product offerings and services through the addition of the acquired technologies.

Accepted Answer

A)  trend information
B)  the global presence
C)  a reputation
D)  valuable resourcesE) B) and D)
F) B) and C)

Question 20

Antitakeover tactics include all the following except

Accepted Answer

A)  greenmail.
B)  poison pills.
C)  golden parachutes.
D)  golden handcuffs.E) A) and C)
F) B) and C)

Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

Antitakeover tactics include all the following except

Correct Answer
verified

3M leverages its competencies in adhesives technologies to many industries,including automotive,construction,and telecommunications.This is an example of creating value by using

Correct Answer
verified

Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?

Correct Answer
verified
Feedback: Discuss what businesses a corp...
View Answer

AOL purchased Time Warner for 114 billion USD in 2001.By 2003,AOL Time Warner had lost 150 billion USD in market valuation.This is an example of a

Correct Answer
verified

Many leading high-tech firms such as Google,Apple,and Intel have dramatically enhanced their revenues,profits,and market values through a wide variety of diversification initiatives.Which of the following is not such an initiative?

Correct Answer
verified

The Coca-Cola acquisition of its bottlers failed because

Correct Answer
verified

Which of the following is not part of a good guideline list for managing strategic alliances?

Correct Answer
verified

Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.

Correct Answer
verified
Feedback: Unfriendly or hostile takeover...
View Answer

Which of the following statements regarding internal development as a means of diversification is false?

Correct Answer
verified

A cash cow,in the BCG framework,refers to a business that has

Correct Answer
verified

Corporate-level strategy focuses on

Correct Answer
verified

According to the text,corporate restructuring includes

Correct Answer
verified

In the BCG Matrix,a ________ is a business that has a low market share in an industry characterized by high market growth.

Correct Answer
verified

When a firm diversifies into businesses,the primary potential benefits to be derived come from relationships where value creation is derived from the corporate office.

Correct Answer
verified

Cisco Systems,a computer networking firm,has undertaken over 80 acquisitions in the last decade.It uses these acquisitions to acquire ________ that will permit it to expand its product offerings and services through the addition of the acquired technologies.

Correct Answer
verified

Through joint ventures,firms can directly acquire the assets and competencies of other firms.

Correct Answer
verified

When management uses common production facilities or purchasing procedures to distribute different but related products,they are

Correct Answer
verified

In managing the corporate portfolio,the BCG matrix would suggest that

Correct Answer
verified

Factors that directly affect the merger and acquisition environment include all the following except

Correct Answer
verified

Correct Answer
verified

Exam 6: Corporate-Level Strategy: Creating Value Through Diversification

Antitakeover tactics include all the following except

Correct AnswerverifiedShow Answer

3M leverages its competencies in adhesives technologies to many industries,including automotive,construction,and telecommunications.This is an example of creating value by using

Correct AnswerverifiedShow Answer

Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?

Correct AnswerverifiedFeedback: Discuss what businesses a corp...View AnswerShow Answer

AOL purchased Time Warner for 114 billion USD in 2001.By 2003,AOL Time Warner had lost 150 billion USD in market valuation.This is an example of a

Correct AnswerverifiedShow Answer

Many leading high-tech firms such as Google,Apple,and Intel have dramatically enhanced their revenues,profits,and market values through a wide variety of diversification initiatives.Which of the following is not such an initiative?

Correct AnswerverifiedShow Answer

The Coca-Cola acquisition of its bottlers failed because

Correct AnswerverifiedShow Answer

Which of the following is not part of a good guideline list for managing strategic alliances?

Correct AnswerverifiedShow Answer

Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.

Correct AnswerverifiedFeedback: Unfriendly or hostile takeover...View AnswerShow Answer

Which of the following statements regarding internal development as a means of diversification is false?

Correct AnswerverifiedShow Answer

A cash cow,in the BCG framework,refers to a business that has

Correct AnswerverifiedShow Answer

Corporate-level strategy focuses on

Correct AnswerverifiedShow Answer

According to the text,corporate restructuring includes

Correct AnswerverifiedShow Answer

In the BCG Matrix,a ________ is a business that has a low market share in an industry characterized by high market growth.

Correct AnswerverifiedShow Answer

When a firm diversifies into ________ businesses,the primary potential benefits to be derived come from ________ relationships where value creation is derived from the corporate office.

Correct AnswerverifiedShow Answer

Cisco Systems,a computer networking firm,has undertaken over 80 acquisitions in the last decade.It uses these acquisitions to acquire ________ that will permit it to expand its product offerings and services through the addition of the acquired technologies.

Correct AnswerverifiedShow Answer

Through joint ventures,firms can directly acquire the assets and competencies of other firms.

Correct AnswerverifiedShow Answer

When management uses common production facilities or purchasing procedures to distribute different but related products,they are

Correct AnswerverifiedShow Answer

In managing the corporate portfolio,the BCG matrix would suggest that

Correct AnswerverifiedShow Answer

Factors that directly affect the merger and acquisition environment include all the following except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Feedback: Discuss what businesses a corp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Feedback: Unfriendly or hostile takeover...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

When a firm diversifies into businesses,the primary potential benefits to be derived come from relationships where value creation is derived from the corporate office.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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