Quiz
Chapter 7 - Corporate Diversification
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Fragen in diesem Quiz (49)
1A firm implements a ________ when it operates in multiple industries or markets simultaneously.
- Avertical integration strategy
- Bcorporate diversification strategy
- Cbusiness diversification strategy
- Dproduct-differentiation strategy
2When a firm operates in multiple industries simultaneously, it is said to be implementing a
- Aproduct diversification strategy.
- Bproduct-differentiation strategy.
- Cgeographic market diversification strategy.
- Dgeographic market differentiation strategy.
3When a firm operates in multiple geographic markets simultaneously it is said to be implementing a(n)
- Ainternational diversification strategy.
- Bproduct-differentiation strategy.
- Cgeographic market diversification strategy.
- Dgeographic market differentiation strategy.
4When a firm simultaneously implements both a product diversification strategy and a geographic market diversification strategy it is said to be implementing a(n)
- Amixed-market diversification strategy.
- Bunrelated-diversification strategy.
- Cproduct-differentiation strategy.
- Dproduct-market diversification strategy.
5A firm has implemented a strategy of ________ when all or most of its activities fall within a single industry and geographic market.
- Alimited corporate diversification
- Brelated diversification
- Cunrelated diversification
- Drelated-linked diversification
6In which type of limited corporate diversification do firms have greater than 95% of their total sales in a single product market?
- Adominant-business firms
- Bsingle-business firms
- Crelated-constrained firms
- Drelated-linked firms
7Firms pursuing ________ have between 70% and 95% of their sales in a single product market.
- Adominant-business diversification
- Bsingle-business diversification
- Crelated-constrained diversification
- Drelated-linked diversification
8The analysis of firms pursuing a strategy of ________ is logically equivalent to the analysis of business-level strategies.
- Aunrelated diversification
- Brelated-linked diversification
- Crelated-constrained diversification
- Dlimited corporate diversification
9Firms such as PepsiCo that operate a number of businesses around the world that share a number of inputs, production technologies, or distribution channels but none of whose businesses account for more than 70% of a firm's revenues are said to be implementing a
- Arelated-constrained diversification.
- Brelated-linked diversification.
- Cdominant-business diversification.
- Dsingle-business diversification.
10Firms such as Disney that own and operate businesses that share a limited number of inputs, production technologies or distribution channels are said to be pursuing a ________ corporate diversification strategy.
- Arelated-constrained
- Brelated-linked
- Cdominant-business
- Dsingle-business
11Firms such as General Electric that generate less than 70% of their revenues from a single product market and whose businesses share few, if any, common attributes are said to be pursuing ________ corporate diversification.
- Alimited
- Brelated-linked
- Crelated-constrained
- Dunrelated
12In order for corporate diversification to be economically valuable
- Athere must be some valuable economy of scope among the multiple businesses in which a firm is operating and it must be more costly for managers in a firm to realize these economies of scope than for outside equity holders on their own.
- Bthere must not be any valuable economy of scope among the multiple businesses in which a firm is operating and it must be less costly for managers in a firm to realize these economies of scope than for outside equity holders on their own.
- Cthere must be some valuable economy of scope among the multiple businesses in which a firm is operating and it must be less costly for managers in a firm to realize these economies of scope than for outside equity holders on their own.
- Dthere must not be any valuable economy of scope among the multiple businesses in which a firm is operating and it must be more costly for managers in a firm to realize these economies of scope than for outside equity holders on their own.
13When the value of the products or services a firm sells increases as a function of the number of business that the firm operates in, ________ are said to exist.
- Aeconomies of scope
- Bvertical economies
- Ceconomies of scale
- Ddiseconomies of scope
14Which of the following statements regarding economies of scope is accurate?
- AOnly firms pursuing single-business diversification can exploit economies of scope.
- BOnly firms pursuing related-constrained diversification can exploit economies of scope.
- COnly firms not pursuing diversification can exploit economies of scope.
- DOnly diversified firms can exploit economies of scope.
15Currently, most scholars believe that exploiting economies of scope through corporate diversification, on average,
- Adestroyed about 25% of a firm's market value.
- Bhad no impact on a firm's market value.
- Cdestroyed about 55% of a firm's market value.
- Dincreased a firm's market value.
16Which type of economies of scope includes shared activities and core competencies?
- Aoperational economies of scope
- Bfinancial economies of scope
- Canticompetitive economies of scope
- Demployee and stakeholder incentives for diversification
17If a diversified firm had three businesses and these companies shared a common marketing and service operation, as well as common technology and development, this would be an example of which type of economy of scope?
- Acore competencies
- Bshared activities
- Crisk reduction
- Dmultipoint competition
18Shared activities are quite common between both ________ and ________ diversified firms.
- Asingle-business; dominant-business
- Brelated-constrained; single-business
- Crelated-linked; dominant-business
- Drelated-constrained; related-linked
19Limits of activity sharing include
- Asubstantial organizational issues that are often associated with a diversified firm's learning how to manage cross-business relationships and in which failure can lead to excess bureaucracy, inefficiency, and organizational gridlock.
- Ba significant reduction in an organization's innovation and flexibility.
- Csubstantial organizational issues related to adequately compensating personnel across businesses and setting transfer prices.
- Da significant reduction in an organization's ability to meet the needs of any of its customers.
20________ are complex sets of resources and capabilities that link different businesses in a diversified firm through managerial and technical know-how, experience and wisdom.
- AManagerial competencies
- BCore competencies
- CCompetitive advantages
- DCore advantages
21A firm that diversifies by exploiting its resources and capability advantages in its original business will have ________ costs than (as) firms that begin a new business without these resource and capability advantages, or ________ revenues than (as) firms lacking these advantages.
- Ahigher; lower
- Bthe same; higher
- Clower; the same
- Dlower; higher
22If all of a firm's businesses share the same core competencies, then that firm has implemented a strategy of ________ diversification.
- Asingle-business
- Brelated-linked
- Crelated-constrained
- Ddominant-business
23Diversified firms that are exploiting core competencies as an economy of scope but are not doing so with any shared activities are sometimes called ________ diversified firms.
- Aseemingly unrelated
- Bunrelated
- Csemi-related
- Dlink-related
24A common way of thinking about strategy across different businesses within a firm is known as the firm's
- Acore competency.
- Bcompetitive advantage.
- Ceconomy of scope.
- Ddominant logic.
25In general, as a source of capital a diversified firm has ________ information about a business that it owns compared to external sources of capital.
- Amore and better
- Bthe same
- Cless and inferior
- Dmore but biased
26Compared to two very risky businesses that have cash flows that are not highly correlated over time and that are operating separately, the risk of a diversified firm operating in those same two businesses simultaneously is
- Asomewhat higher.
- Blower.
- Cthe same.
- Dsubstantially higher.
27________ exists when two or more diversified firms simultaneously compete in multiple markets.
- AMultipoint competition
- BDynamic competition
- CMultipoint cooperation
- DDynamic cooperation
28For multipoint competition to lead to mutual forbearance,
- Athe threat of retaliation must be substantial and the firms pursuing this strategy must have strong linkages among their diversified businesses.
- Bthe threat of retaliation must be low and the firms pursuing this strategy must have strong linkages among their diversified businesses.
- Cthe threat of retaliation must be low and the firms pursuing this strategy must have weak linkages among their diversified businesses.
- Dthe threat of retaliation must be substantial and the firms pursuing this strategy must have weak linkages among their diversified businesses.
29When diversified firms use the revenues from profitable businesses to subsidize the operations of another business and then set the prices of the subsidized firm's products at a level that is below the subsidized business's cost to produce these items, this is known as ________ pricing.
- Adynamic
- Bmonopoly
- Cpredatory
- Dbeneficial
30Research over the years has demonstrated conclusively that the primary determinant of the compensation of top managers in a firm is
- Anot the size of the firm, usually measured in sales, but the economic performance of the firm.
- Bboth the economic performance of the firm as well as the size of the firm, usually measured in sales.
- Cnot the economic performance of the firm but the size of the firm, usually measured in sales.
- Dneither the economic performance of the firm nor the size of the firm.
31Which of the following economies of scope do not have the potential for generating positive returns for a firm's equity holders since the economies of scope can be realized by outside equity holders at a low cost by investing in a diversified portfolio of stock?
- Ashared activities
- Bdiversification to maximize the size of a firm
- Cinternal capital allocation
- Dexploiting market power
32The only economy of scope that an unrelated firm can try to realize is
- Acore competencies.
- Btax advantages.
- Cmultipoint competition.
- Drisk reduction.
33Which of the following economies of scope is costly to duplicate?
- Ashared activities
- Binternal capital allocation
- Crisk reduction
- Dtax advantages
34Which of the following economies of scope is less costly to duplicate?
- Aemployee compensation
- Bcore competencies
- Cmultipoint competition
- Dexploiting market power
35Substitutes for exploiting economies of scope in diversification include
- Agrowing and developing independent businesses within a diversified firm and vertical integration.
- Bvertical integration and strategic alliances.
- Cgrowing and developing independent businesses within a diversified firm and strategic alliances.
- Dstrategic alliances and multipoint competition.
36Which of the following statements regarding the rarity of diversification is accurate?
- AIf only a few competing firms have exploited a particular economy of scope, that economy of scope can be rare.
- BA particular economy of scope can only be rare if no other firms are exploiting that economy of scope.
- CA particular economy of scope can be rare even if many other firms are exploiting that economy of scope.
- DIf only a few competing firms have exploited a particular economy of scope, that economy of scope can be rare but only if the firm is pursuing unrelated diversification.
37Which of the following economies of scope is costly-to-duplicate?
- Aemployee compensation
- Bcore competencies
- Cshared activities
- Drisk reduction
38________ is an example of a less costly-to-duplicate economies of scope.
- ATax advantages
- BCore competencies
- CInternal capital allocation
- DMultipoint competition
39________ are substitutes for exploiting economies of scope in diversification.
- ATax havens
- BTax shelters
- CTax freedom
- DStrategic alliances
40In 2001, Peach Computers' diversification strategy was best characterized as
- Arelated-linked diversification.
- Bdominant-business diversification.
- Csingle-business diversification.
- Drelated-constrained diversification.
41By 2003, Peach Computers' diversification strategy was best characterized as
- Aunrelated diversification.
- Brelated-constrained diversification.
- Crelated-linked diversification.
- Ddominant-business diversification.
42Which type of economies of scope is Peach Computers experiencing between its units?
- Ashared activities
- Bcore competencies
- Cmultipoint competition
- Dtax advantages
43One of the limits of the economies of scope that Peach Computers is leveraging in its diversification strategy is
- Athey may limit the ability of a particular business to meet specific customers' needs.
- Bthey are significantly affected by the way a diversified firm is organized.
- Cthey are not tangible and may be reflected only in the shared knowledge, experience and wisdom across businesses.
- Dthe level and type of diversification that a firm pursues can affect the efficiency of this allocation process.
44If one of the reasons that Peach Computers entered into the electronics industry was to offset weakness in the computer industry because when the computer industry was weak, the electronics industry was strong, and vice versa, Peach Computers would be pursuing which economy of scope?
- Acore competencies
- Bmultipoint competition
- Ctax advantages
- Drisk reduction
45If, when Peach Computers introduced its PeachPit in 2001, the company used its profits in the computer industry to subsidize its operations in the electronics industry and used this subsidy to sell the PeachPit for a price that was less than the cost of producing and selling the MP3 players, this would be an example of
- Amutual forbearance.
- Bescalation of commitment.
- Cpredatory pricing.
- Dmultipoint competition.
46Peach Computers' equity holders, its employees, suppliers and customers along with all of those groups and individuals who have an interest in how Peach Computers performs are referred to as
- Afocal groups.
- Bstakeholders.
- Csupporters
- Dstockholders.
47If no other firm in the computer industry were using a diversification strategy similar to Peach Computers', this diversification strategy could be said to be
- Arare and costly to duplicate.
- Brare and less costly to duplicate.
- Ccommon but costly to duplicate.
- Dcommon and less costly to duplicate.
48In 2001, if Peach Computers did not want to employ a diversification strategy to enter the personal electronics industry, it could use which substitute for diversification?
- Abackward vertical integration
- Bproduct differentiation
- Cstrategic alliances
- Dforward vertical integration
49If Peach Computers were looking to getting into the business of making telephones, its diversification would be called
- Arelated-linked.
- Brelated-constrained.
- Crelated-corporate.
- Dunrelated.
Informationen
- Beschreibung
- Quiz am Chapter 7 - Corporate Diversification , erstellt von Strategy IO am 14/11/2016.
- Autor
- Strategy IO
- Sprache
- English
- Aufrufe
- 350
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