Question 1

Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with

Accepted Answer

A)   strategic alliances.
B)   divestment.
C)   vertical integration.
D)   horizontal integration.E) A) and C)
F) A) and D)

Question 2

Molson, Inc. of Montreal and Coors Co. of Golden, Colorado merged their operations in order to stand up to the

Accepted Answer

A)   continued diversification in the beverage market.
B)   competition from Japan.
C)   continuing consolidation in the global beer industry.
D)   substantial cash outlays to maintain market share.E) A) and B)
F) A) and C)

Question 3

An anti-takeover tactic called a ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it.

Accepted Answer

A)   golden parachute
B)   greenmail
C)   poison pill
D)   scorched earthE) B) and D)
F) C) and D)

Question 4

Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

Accepted Answer

A) True 
 B)False

Question 5

It may be advantageous to vertically integrate when

Accepted Answer

A)   lower transaction costs and improved coordination are vital and achievable.
B)   the minimum efficient scales of two corporations are different.
C)   flexibility is reduced, providing a more stationary position in the competitive environment.
D)   various segregated specializations will be combined.E) A) and D)
F) C) and D)

Question 6

What is Real Options Analysis (ROA) and how can it be used by strategic decision makers?

Accepted Answer

The phrase "real options" applies to sit...

Question 7

Portfolio management matrices are applied to what level of strategy?

Accepted Answer

A)   departmental level
B)   business level
C)   corporate level
D)   international levelE) A) and D)
F) B) and C)

Question 8

Strategic alliances are arrangements in which two firms join forces and form a cooperative partnership. Discuss the potential advantages of strategic alliances.

Accepted Answer

Potential advantages include e...

Question 9

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)   sharing activities.
C)   achieving process gains.
D)   using portfolio analysis.E) A) and D)
F) A) and C)

Question 10

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

Accepted Answer

A) True 
 B)False

Question 11

When Canadian family-controlled firm Schneider's wanted to block Maple Leaf Foods, they looked to Springfield as a

Accepted Answer

A)   greenmail.
B)   golden parachute.
C)   white knight.
D)   poison pill.E) A) and B)
F) A) and C)

Question 12

Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other)  costs in the value chain, and developing and diffusing new technologies.

Accepted Answer

A)   joint ventures
B)   mergers and acquisitions
C)   strategic alliances
D)   joint ventures and strategic alliancesE) A) and D)
F) A) and C)

Question 13

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

Accepted Answer

A)   the similarity required for sharing core competencies must be in the value chain, not in the product.
B)   the products use similar distribution channels.
C)   the target market is the same, even if the products are very different.
D)   the methods of production are the same.E) B) and C)
F) A) and D)

Question 14

A golden parachute is a prearranged contract with managers specifying that in the event of a hostile takeover, the target firm's managers will be paid a significant severance package.

Accepted Answer

A) True 
 B)False

Question 15

In the BCG (Boston Consulting Group)  matrix, a business that has a low market share in an industry characterized by high market growth is termed a

Accepted Answer

A)   star.
B)   question mark.
C)   cash cow.
D)   dog.E) B) and D)
F) B) and C)

Question 16

Loblaw, with a strong presence in Ontario and Western Canada, gained a footprint into the Quebec market by

Accepted Answer

A)   establishing a clear understanding between partners.
B)   acquiring Provigo.
C)   not shortchanging your partner.
D)   working hard to ensure a collaborative relationship between partners.E) B) and C)
F) A) and D)

Question 17

Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements.

Accepted Answer

A) True 
 B)False

Question 18

Upon the acquisition of Microcell, Rogers was able to immediately obtain savings.

Accepted Answer

A) True 
 B)False

Question 19

An anti-takeover tactic called greenmail is

Accepted Answer

A)   encouraged in Canada.
B)   prohibited in Canada.
C)   only allowed in Quebec.
D)   borrowed from NAFTA.E) B) and C)
F) B) and D)

Question 20

Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources.

Accepted Answer

A) True 
 B)False

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

Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources.

Correct AnswerverifiedShow Answer

Cooperative relationships such as _______ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies.

Correct AnswerverifiedShow Answer

Portfolio management should be considered as the primary basis for formulating corporate-level strategies.

Correct AnswerverifiedShow Answer

Upon the acquisition of Microcell, Rogers was able to immediately obtain savings.

Correct AnswerverifiedShow Answer

An anti-takeover tactic called greenmail is

Correct AnswerverifiedShow Answer

Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with

Correct AnswerverifiedShow Answer

Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements.

Correct AnswerverifiedShow Answer

Loblaw, with a strong presence in Ontario and Western Canada, gained a footprint into the Quebec market by

Correct AnswerverifiedShow Answer

When Canadian family-controlled firm Schneider's wanted to block Maple Leaf Foods, they looked to Springfield as a

Correct AnswerverifiedShow Answer

A golden parachute is a prearranged contract with managers specifying that in the event of a hostile takeover, the target firm's managers will be paid a significant severance package.

Correct AnswerverifiedShow Answer

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that

Correct AnswerverifiedShow Answer

Molson, Inc. of Montreal and Coors Co. of Golden, Colorado merged their operations in order to stand up to the

Correct AnswerverifiedShow Answer

Portfolio management matrices are applied to what level of strategy?

Correct AnswerverifiedShow Answer

In the BCG (Boston Consulting Group) matrix, a business that has a low market share in an industry characterized by high market growth is termed a

Correct AnswerverifiedShow Answer

It may be advantageous to vertically integrate when

Correct AnswerverifiedShow Answer

An anti-takeover tactic called a ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it.

Correct AnswerverifiedShow Answer

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

Correct AnswerverifiedShow Answer

What is Real Options Analysis (ROA) and how can it be used by strategic decision makers?

Correct AnswerverifiedThe phrase "real options" applies to sit...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Strategic alliances are arrangements in which two firms join forces and form a cooperative partnership. Discuss the potential advantages of strategic alliances.

Correct AnswerverifiedPotential advantages include e...View AnswerShow Answer

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The phrase "real options" applies to sit...
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Potential advantages include e...
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