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28. The purchasing of firms in the same industry is called: a. unrelated diversification. b. vertical integration. c. networking the organization. d. horizontal acquisition. ANS: D 29. In related linked diversified firms, ____ are a complex set of resources that link the differentbusinesses through managerial and technological knowledge, experience, and expertise.
30. The drawbacks to transferring competencies by moving key people into new managementpositions include all EXCEPT31. Multipoint competition occurs when 32. One method of facilitating the transfer of competencies between firms is to a. virtually integrate the two firms.b. transfer key people into new management positions. c. share support activities, such as purchasing practices. d. restructure the weaker firm to mirror the structure of the more successful firm. ANS: B 33. Xanadu, a U.S. manufacturer of pharmaceuticals, has acquired a firm in the same industry inIreland. It plans to transfer one of its key managers from its plant in St. Louis to Ireland. What is themajor threat to Xanadus plan to transfer competencies from itself to the Irish firm? 34. Acquisitions to increase market power require that the firm have a ____ diversification strategy. 35. When diversification results in two companies, such as UPS and FedEx, simultaneouslycompeting in numerous markets, this is called ____ competition.