Bus401 s07 sena quiz5

Bus401 s07 sena - This test is open book open notes Please submit your test answers directly to your instructor at the beginning of the next class

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Unformatted text preview: This test is open book, open notes. Please submit your test answers directly to your instructor at the beginning of the next class. Please do NOT submit them in electronic form -- either via the digital drop box in blackboard or by email. Chapter 6 True/False Questions 1. Whenever an organization diversifies, it represents investing a stockholder's funds in a way in which the individual investor is unable. True 01': gals 9 2. Diversification that results in strengthening the value chain and increasing competitive advantages is the best possible example of investing stockholders' funds in a way that individual investors cannot. (fivTrue‘or False 3. Market power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation. True oriFalsT'éjy 4. A newly acquired business must always have products that are similar to the existing businesses products to benefit from the corporation's core competence. True or’Ealse) v ’ 5. The two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting. True or£é[§é> 6. One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain. Iiygbr False 7. Restructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. False 8. The acquisition of two or more counter-cyclical businesses is an example of using diversification to reduce risk. flue}: False 9. The potential advantages of strategic alliances and joint ventures include enterin new markets as well as developing and diffusing new technologies. h'-l'.r.ue or alse Bus 40] Quiz 5 Page 1 16. When management uses common production facilities or purchasing procedures to distribute different but related products, they are A building on core competencies. C? sharing activities. ) achieving process gains. D) using portfolio analysis. 17. Unbalanced capacities that limit cost savings,idifficulties in combining specializations, and reduced flexibility are disadvantages associated with A) strategic alliances- B divestment. vertical integration. ) horizontal integration. 18. A firm should consider vertical integration when A) the competitive situation is highly volatile. B) customer needs are evolving. the firm's suppliers willingly cooperate with the firm. the firm's suppliers of raw materials are often unable to maintain quality standards. 19. Portfolio management matrices are applied to what level of strategy? A) Departmental level B Business level @ Corporate level ) International level 20. When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow would be known as a A) cow. B) dog. problem child. W star. c: I, 9 D068. 21. In the ECG (Boston Consulting Group) Matrix, a business t at has a low market share in an industry characterized by high market growth is termed a star. {:B question mark. C) cash cow. D) dog. 22. in managing a firm's portfolio, the ECG matrix would suggest that A) “clogs” 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 ‘1 opportunities. 5C) “question marks" can represent future “stars” if their market share is “’"“ increased. D) “cash cows” require substantial cash outlays to maintain market share. Bus 401 Quiz 5 Page 3 ...
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This homework help was uploaded on 02/07/2008 for the course BUS 401 taught by Professor Sena during the Spring '06 term at Cal Poly.

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Bus401 s07 sena - This test is open book open notes Please submit your test answers directly to your instructor at the beginning of the next class

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