FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Corporate Strategy: Vertical Integration and Diversification

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

_____,which are incurred when pursuing a related-diversification strategy,are a function of the number,size,and types of businesses that are linked to one another.

A) Coordination costs
B) Fixed costs
C) Agency costs
D) Network costs

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

_____ is best described as a form of long-term contracting in the manufacturing sector that enables firms to commercialize intellectual property.

A) Lean manufacturing
B) Licensing
C) Crowdsourcing
D) Bootlegging

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Win Goods Inc.is a large multinational conglomerate.As a single business unit,the company's stock price is estimated to be $200.However,by adding the actual market stock prices of each of its individual business units,the stock price of the company as one unit would be $300.What is Win Goods experiencing in this scenario?

Vehmo Inc.is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars.The company realizes that more of its potential customers are switching to electric cars.The R&D department of the company acquires competencies in developing electric cars and launches its first hybrid car.In this scenario,Vehmo is primarily

How do firms benefit from vertical integration?

Which of the following best illustrates site specificity?

A strategy of _____ will be most beneficial for a firm to enhance its overall corporate performance.

A firm sources intermediate goods and components from in-house suppliers as well as outside suppliers.In a similar fashion,another firm sells its products through company-owned retail outlets and through independent retailers.Both of these examples demonstrate

How does a conglomerate benefit from following an unrelated diversification strategy?

ESB Group is the parent company of many related businesses under its banner.Each share of the parent company is quoted at $220.However,if this had to be assessed by adding the stock prices of each of its strategic business units,the value would only be $200 per share.In this scenario,what has ESB Group created?

Decisions relating to "what stages of the industry value chain to participate in" determine a firm's

Neon Electronics Inc.sourced touch screens required for its tablet computers,cell phones,and televisions from a manufacturer in China.But the demand for such components was high globally,and the supplier could not meet the quality standards of Neon Electronics.Thus,Neon Electronics decided to set up its own unit to develop and manufacture the required touch screens.What does this scenario best illustrate?

Fantastica Industries,a U.S.-based large conglomerate,competes in the hospitality,education,telecommunications,entertainment,airlines,and chemical industries.It currently operates in about 30 nations,and is planning to expand its portfolio by investing in rapidly developing countries.Which of the following strategies is Fantastica Industries pursuing?

The core competency of MotorCraft Inc.is its fuel-efficient engine found in its cars.These engines are developed and built in-house.The company realizes that there is a new market opportunity to diversify.Thus,it produces the car engines on a large scale and sells them to other automobile companies.In this scenario,MotorCraft is

Companies that pursue related diversification are able to create a diversification premium because they

When executives of a firm consider business opportunities only where they can leverage their existing competencies and resources,it can be concluded that the firm is using

_____ is when a firm moves activities and jobs outside its home country.

Which of the following companies will be considered as a conglomerate?

Companies that pursue related diversification are more likely to improve their performance than companies that pursue unrelated diversification because they create a

Which of the following motivations for business growth involves principal-agent problems?