question

The most widely pursued corporate directional strategies are those designed to achieve growth (TF)

answer

true

question

With taper integration, a firm internally makes 100% of its key supplies and completely control its distributors (TF)

answer

false

question

As defined by the text, synergy is the concept

answer

that two firms can generate more profits together than separately

question

Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units?

answer

corporate

question

The GE Business Screen is based on long-term industry attractiveness and business strength/competitive position (TF)

answer

true

question

Which strategy involves giving up management of the firms to the courts in return for some settlement of the corporations obligations?

answer

bankruptcy

question

Products that typically bring in far more money than is needed for maintenance of their market share are called

answer

cash cows

question

The most logical growth strategy for a corporation having a strong competitive position possessing a high market share in a highly attractive industry is

answer

concentration

question

Corporate parenting views the corporations in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units (TF)

answer

true

question

Which one of the following directional strategies is most frequently used in corporations?

answer

growth

question

When Bristol-Myers Squibb purchased 17% os ImClone's common stock to gain access to a new drug, it was using which type of integration?

answer

quasi integration

question

The two basic growth strategies are concentration and strategic alliances (TF)

answer

false

question

When a firm internally makes 100% of its key supplies and completely controls its distributors, this is known as

answer

full integration

question

Adding a related or complementary product to a corporation's business units is called

answer

concentric diversification

question

Which of the following is NOT a reason why the growth strategy is so seductive?

answer

a large and growing firm attracts more acquisition offers

question

Forming a joint venture between a foreign corporation and a domestic company is the most popular strategy used to enter a new country (TF)

answer

true

question

The strategy which takes place in two basic phases of contraction and consolidation is

answer

turnaround

question

The stability strategies are really a lack of any strategy (TF)

answer

false

question

Management contracts are used in International dealings

answer

when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specifies fee and period of time

question

Stability strategies can be very useful in the short run, but they can be dangerous if followed for too long (TF)

answer

true

question

According to the BCG Growth-Share Matrix, market leaders that typically are at the peak of their product life cycle and are usually able to generate enough cash to maintain their high share of the market are called

answer

stars

question

Management contracts are common when a host government expropriates part or all of a foreign-owned company's holdings in its country (TF)

answer

true

question

An MNC uses which international strategy for entering a foreign market by associating itself with a firm in the host country or a government agency in that country to combine resources and expertise needed for the development of a new product or technologies?

answer

joint ventures

question

According to the BCG Growth Share Matrix, dogs should be either sold off or managed carefully for the small amounts of cash they can generate (TF)

answer

true

question

Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to Northwest's Asian Markets?

answer

a horizontal integration strategy

question

A disadvantage of vertical integration is that it

answer

creates exit barriers

question

In multipoint competition, large multi-business corporations compete against other large multi-business firms in a number of markets (TF)

answer

true

question

When Sony's CEO, Howard Stringer, eliminated 10,000 jobs and closed 11 plants, he was addressed the consolidation phase of the turnaround strategy (TF)

answer

false

question

Conglomerate diversification is diversifying into an industry unrelated to its current one (TF)

answer

true

question

The stability strategy is appropriate for all the following circumstances EXCEPT

answer

appropriate when the industry is in decline

question

In international dealing, green-feild development is

answer

when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire its workforce

question

Which strategy might be the most likely when management realizes that the current industry is unattractive and that the firm lacks outstanding skills that it could easily transfer to related products or services in other industries?

answer

conglomerate diversification

question

According to the BCG Growth Share Matrix, those products with low market share that do NOT have the potential to bring in much cash are called

answer

dogs

question

Forward integration is often more profitable than backward integration (TF)

answer

false

question

Which of the following describes a turnaround strategy?

answer

emphasizes improving operational efficiency and is appropriate when a corporation's problems are pervasive, but not yet critical

question

In which strategy does management hope that another company will have the necessary resources and determination to return the company to profitability?

answer

sell out

question

The most widely pursued corporate directional strategies are those designed to achieve growth (TF)

answer

true

question

Corporate parenting is the coordination of cash flow among units (TF)

answer

false

question

Management contracts are common when a host governments expropriates are part or all of a foreign-owned company's holdings in its country (TF)

answer

true

question

Vertical integration is going backward on an industry value chain (TF)

answer

false

question

Concentric diversification is growth into unrelated businesses (TF)

answer

false

question

Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit values as well as generate synergies across business units (TF)

answer

true

question

In multipoint competition, large-multi business corporations compete against other large multi-business firms in a number of markets (TF)

answer

true

question

The two basic growth strategies are concentration and strategic alliances (TF)

answer

false

question

Vertical integration is the degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to manufacturing to retailing (TF)

answer

true

question

Which of the following is NOT a reason why the growth strategy is so seductive?

answer

a large and growing firm attracts more acquisition offers

question

Forward integration is often more profitable than backward integration (TF)

answer

false

question

As defined by the text, synergy is the concept

answer

that two firms can generate more profits together than separately

question

Ford Motor Company's use of company resources to build its River Rouge Plant outside of Detroit so that iron ore could enter into one end of the plant and a finished automobile could exit out of the other end it called

answer

vertical growth

question

A long-term contract is considered vertical integration (TF)

answer

false

question

Exporting grants rights to another company to open a retail store using the franchisers name and operating system (TF)

answer

false

question

Conglomerate diversification is diversifying into an industry unrelated to its current one (TF)

answer

true

question

Which external growth strategy involves two or more corporations joining in a stock exchange and from which only one corporation survives?

answer

mergers

question

Forward integration is often more profitable than backward integration (TF)

answer

false

question

Forming a joint venture between a foreign corporation and a domestic company is that most popular strategy used to enter a new country (TF)

answer

true

question

Research comparing concentric with conglomerate diversification concluded that

answer

the relationship between relatedness and performance is curvilinear

question

The GE Business Screen is based on long-term industry attractiveness and business strength/competitive position (TF)

answer

true

question

The purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the world's largest port processor, is an example of

answer

backward integration

question

An MNC uses which international strategy for entering a foreign market by purchasing another company already operating in the area developing synergistic benefits gained from acquiring strong complementary product lines and a good distribution network?

answer

acquisition

question

In the Boston Consulting Group's Growth-Share Matrix, the relative competitive position of a product, division, or corporation is defined as

answer

its market share divided by that of the largest other competitor

question

An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing country?

answer

production sharing

question

Corporate parenting is the coordination of cash flow among units. (TF)

answer

false

question

A relatively quick way to move into an international area is through Greenfield development (TF)

answer

false

question

In international dealings, green-feild development is

answer

when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire its workers

question

A firm's expansion into other geographic locations and/or increasing the range of products and services to current markets is called

answer

horizontal growth

question

An attempt to explain that vertical integration is more efficient than contraction for good and services in the marketplace when the transaction costs of buying good on the open market becomes too great has been proposed by

answer

transaction cost economies

question

Turnkey operations are typically contracts for the construction of operating facilites in exchange for a fee (TF)

answer

true

question

The purpose of vertical growth is to

answer

take over a function previously provided by a supplier of by a distributor

question

Horizontal growth can be achieved by expanding the firm's products into other geographic locations and/or by increasing the range of products and service offered to current markets (TF)

answer

true

question

With taper integration, a firm internally makes 100% of its key suppliers and completely controls its distributors (TF)

answer

false

question

In many cases,____ integration is more profitable than _____ integration.

answer

backward, forward

question

When a firm internally makes 100% of its key suppliers and completely controls its distributors, this is known as

answer

full integration

question

Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future?

answer

pause/proceed with cation strategy

question

An MNC uses which international strategy for entering a foreign market by simple shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

answer

exporting

question

Corporate parenting views the corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units (TF)

answer

true

question

Turnkey operations are typically contacts for the construction of operating facilities in exchange for a fee (TF)

answer

true

question

Which strategy is most appropriate for a company in an industry in which the future is expected to continue as an extensions of the present?

answer

no change strategy

question

In terms of diversification strategies, research suggests that the relationship between relatedness and performance is curvilinear in the shape of an inverted U-shape curve (TF)

answer

true

question

One disadvantage of portfolio analysis is that is provides an illusion of scientific rigor (TF)

answer

true

question

According to the GE Business Screen, the competitive strength of a product is based only on its market share (TF)

answer

false

question

Which one of the following is NOT a characteristic of a firm that has chosen a captive company strategy?

answer

probably most appropriate for a company with a strong competitive position in a growing industry

question

Growth through diversification out of an industry into an unrelated industry is called

answer

conglomerate diversification

question

Stability strategies can be very useful in the short run, but they can be dangerous if followed for too long (TF)

answer

true

question

Which kind of corporate strategy deals with the firm's overall orientation toward growth?

answer

directional strategy

question

Corporate strategy deals primarily with the choice of direction for the firm as a whole and the management of its business or product portfolio (TF)

answer

true

question

With conglomerate diversification, the focus is on

answer

financial considerations

question

BP Amoco and Royal Dutch Shell are examples of fully integrates firms because they make 100% of their key suppliers and completely control their distributions (TF)

answer

true

question

The growth-share matrix of the Boston Consulting Group suggests that the excess cash being generated by "cash cows" should be used to fund

answer

"question marks"

question

What strategy did Circuit City use in 2008 when it converted its retail stores to cash?

answer

liquidation

question

The controversy surrounding external versus internal growth finds

answer

internal growth appears to be superior financially to external growth

question

The strategy which takes place in two basic phases of concentration and consolidation is

answer

turnaround

question

Forward integration is often more profitable than backwards integration (TF)

answer

false

question

Management contracts are common when a host government expropriates part or all of a foreign-owned company's holdings in its country (TF)

answer

true

question

Concentric diversification is growth into unrelated businesses (TF)

answer

false

question

Which kind of corporate strategy deals with the manner in which the firm coordinates activities and transfers resources and cultivates capabilities among product lines and business units

answer

parenting strategy

question

Which of the following describes a turnaround strategy?

answer

emphasizes improving operational efficiency and is appropriate when a corporations' problems are pervasive, but not yet critical

question

Which external growth strategy was demonstrated when Proctor and Gamble completely absorbed Gillette?

answer

acqusitions

question

One of the most popular aids to developing corporate strategy in multi-business corporations that view business units in terms of the cash they generate is called

answer

portfolio analysis

question

One benefit of a US company entering a joint venture with an international firm is that it

answer

reduces the risk of expropriation

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