Exam 8: Corporate Strategy

A) to combine the performance of certain cross-business activities and thereby reduce costs.
B) to transfer skills,technology,or intellectual capital from one business to another.
C) for the company's different businesses to share use of a well-respected brand name.
D) for sister businesses to collaborate in creating valuable new competitive capabilities.
E) to create a positive image in the industry irrespective of the financial performance of its businesses.

Correct Answer

verified

Show Answer

A) involve making major changes in a diversified company's business lineup,divesting some businesses and/or acquiring others,so as to put a whole new face on the company's business lineup.
B) entail reducing the scope of diversification to a smaller number of businesses.
C) entail selling off marginal businesses to free up resources for redeployment to the remaining businesses.
D) focus on crafting initiatives to restore a diversified company's money-losing businesses to profitability.
E) focus on broadening the scope of diversification to include a larger number of businesses and boosting the company's growth and profitability.

Correct Answer

verified

Show Answer

A) Multinational diversification
B) Restructure the company's business lineup with a combination of divestitures and new acquisitions
C) Craft new initiatives designed to build/enhance the reputation and image of the company
D) Divest some businesses and retrench to a narrower diversification base
E) Broaden the diversification base

Correct Answer

verified

Show Answer

Correct Answer

verified

The four main strategic options for dive...

View Answer

Show Answer

A) When internal entry is cheaper than entry via acquisition
B) When a company possesses the skills and resources to overcome entry barriers and there is ample time to launch the business and compete effectively
C) When adding new production capacity will not adversely impact the supply demand balance in the industry by creating oversupply conditions
D) When the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms
E) When incumbent firms are likely to be slow or ineffective in combating a new entrant's efforts to crack the market

Correct Answer

verified

Show Answer