QUIZ 5(a) M - Strategic Management Quiz 5(a) 0.5 negative...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Strategic Management Quiz 5(a) 0.5 negative marks for each wrong answer 1- Which one of the following is not  one of the elements of crafting corporate strategy for a  diversified company? A) Picking the new industries to enter and deciding on the means of entry B) Initiating actions to boost the combined performance of the businesses the firm has entered C) Standardizing the resource fits across the group of businesses the company has diversified  into D) Establishing investment priorities and steering corporate resources into the most attractive business  units E) Pursuing opportunities to leverage cross-business value chain relationships  and strategic fits into  competitive advantage 2- To judge whether a particular diversification move has good potential for building added  shareholder value, the move should pass the following tests: A) the attractiveness test, the barrier-to-entry test, and the growth test. B) the strategic fit test, the resource fit test, and the profitability test. C) the barrier-to-entry test, the growth test, and the shareholder value test. D) the attractiveness test, the cost-of-entry test, and the better-off test. E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test 3- Which of the following is not  accurate as concerns entering a new business via acquisition,  internal start-up, or a joint venture? A) The big dilemma of entering an industry via acquisition of an existing company is whether to pay a  premium price for a successful company or to buy a struggling company at a bargain price. B) Acquisition is generally the most profitable way to enter a new industry, tends to be more  suitable for an unrelated diversification strategy than a related diversification strategy, and  usually requires less capital than entering an industry via internal start-up . C) Acquisition is the most popular means of diversifying into another industry, has the advantage of being  quicker than trying to launch a brand-new operation, and offers an effective way to hurdle entry barriers D) Joint ventures are an attractive way to enter new businesses when the opportunity is too complex,  uneconomical, or risky for one company to pursue alone, when the opportunities in a new industry  require a broader range of competencies and know-how than a company can marshal on its own,  and/or when it aids entry into a foreign market. E) The big drawbacks to entering a new industry via internal start-up include the costs of overcoming entry 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/21/2011 for the course BUS 10001 taught by Professor All during the Spring '11 term at Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology.

Page1 / 5

QUIZ 5(a) M - Strategic Management Quiz 5(a) 0.5 negative...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online