文档介绍：该【2025年战略管理第六章作业 】是由【非学无以广才】上传分享，文档一共【8】页，该文档可以免费在线阅读，需要了解更多关于【2025年战略管理第六章作业 】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。Chapter 6—Corporate-Level Strategy
TRUE/FALSE
1. In , Gillette was acquired by Proctor & Gamble (P&G). This is an example of business level strategic action initiated by P&G.
4. A major advantage of diversification is that overall monitoring costs are reduced, since each separate business comes under the control of corporate headquarters.
5. Successful product diversification is expected to increase the variability in the firm’s profitability, since the earnings are generated from several different business units.
11. Blocking competitors through multipoint competition is a strategy used by related diversified firms to create value.
12. PepsiCo uses its own distribution system to deliver multiple Pepsi branded beverage products. Pepsi recently acquired Gatorade and delivers these products using the Pepsi distribution system. This use of Pepsi’s outbound logistics is an example of activity sharing.
13. P&G acquired Gillette Co. and created the Crest Pro-Health label by combining P&G’s Crest with Gillette’s Oral-B brands. This is an example of achieving synergies through sharing activities.
15. In a money-making effort, a small private university has decided to institute consulting services using its business faculty as consultants whose services would be sold to clients. This university is attempting to use its faculty to gain economies of scope.
16. When firms share activities across units, they are often able to achieve increased value.
21. Vertical integration exists when a company produces its own inputs (forward integration) or owns its own source of output distribution (backward integration).
26. Virtual integration tends to erode the relationships between suppliers and customers as personal contacts are replaced with impersonal electronic communications.
29. An unrelated diversification strategy can create value through two types of financial economies, (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their assets, and selling them.
32. Unrelated diversification has been the norm for the most successful firms in many industrialized countries such as Germany, Italy, and France.
35. When implementing a restructuring strategy a company would do best by focusing on mature, low-technology businesses.
38. Low performance is associated with increased diversification.
39. Performance continues to increase as diversification increases from single business to unrelated diversification.
41. Related diversification by a firm tends to reduce a manager’s executive compensation, whereas unrelated diversification tends to increase it because the firm has moved into new industries.
MULTIPLE CHOICE
1. In , P&G, whose products include Crest toothpaste and Tide laundry detergent, purchased Gillette. Gillette itself had multiple businesses, including a range of products including electric toothbrushes, razors and batteries. Which of the following reflects the acquisition?
a.
It is unrelated diversification for P&G because Gillette consists of more than one business unit.
b.
It is unrelated diversification for Gillette because P&G consists of more than one business unit.
c.
It is related diversification for P&G because the product lines for both firms are consumer products sold through similar channels.
d.
It is related diversification for Gillette because the product lines for both firms are consumer products sold through similar channels.
3. On the most basic level, corporate-level strategy is concerned with ____ and how to manage these businesses.
a.
whether the firm should invest in global or domestic businesses
b.
what product markets and businesses the firm should be in
c.
whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring
d.
whether to integrate backward or forward.
4. The ultimate test of the value of a corporate-level strategy is whether the
a.
corporation earns a great deal of money.
b.
top management team is satisfied with the corporation's performance.
c.
businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
d.
businesses in the portfolio increase the firm’s financial returns.
6. Wm. Wrigley Jr. Company once made only chewing gum. When Wrigley bought Life Savers (a line of candy mints) and Altoids (a line of breadth mints) from Kraft, chewing gum then constituted less than 95 percent of revenues. Thus, Wrigley
a.
was moving away from its traditional single-business strategy toward a dominant strategy.
b.
was moving away from its traditional dominant strategy toward a related-linked strategy.
c.
became a conglomerate since Life Savers and Altoids are unrelated businesses.
d.
probably planned to restructure these companies and sell them off.
7. Usually a company is classified as a single business firm when revenues generated by the dominant business are greater than ____ percent.
a.
99
b.
95
c.
90
d.
70
9. A firm that earns less than 70% of revenue from its dominant business and has direct connections between its businesses is engaging in ____ diversification.
a.
unrelated
b.
related constrained
c.
related linked
d.
dominant-business
11. Which acquisition would be considered the LEAST related?
a.
a candy manufacturer purchases a chemical laboratory specializing in food flavorings
b.
a chain of garden centers acquires a landscape architecture firm
c.
a hospital acquires a long-term care nursing home
d.
an upscale “white-tablecloth” restaurant chain acquires a travel agency
12. The lowest level of diversification is the ____ level.
a.
single business
b.
dominant-business
c.
related constrained
d.
unrelated
13. The main difference between the related constrained level of diversification and the related linked level of diversification is
a.
the percentage of total organizational profitability that comes from the dominant business.
b.
the level of resources and activities shared among the businesses.
c.
whether the diversification is vertical or horizontal.
d.
whether the diversification is value-creating or value-neutral.
15. GE has recently reorganized from eleven businesses down to six core businesses. The purpose of this reorganization is to transfer core competencies in different types of technologies among GE’s businesses. This is an example of
a.
increasing market power through vertical integration.
b.
efficient internal capital allocation.
c.
a focus on financial economies.
d.
increasing corporate relatedness.
16. Which of the following reasons for diversification is most likely to increase the firm’s value?
a.
increasing managerial compensation
b.
reducing costs through business restructuring
c.
taking advantage of changes in tax laws
d.
conforming to antitrust regulation
17. Which of the following is a value-reducing reason for diversification?
a.
enhancing the strategic competitiveness of the entire company
b.
expanding the business portfolio in order to reduce managerial employment risk
c.
gaining market power relative to competitors
d.
conforming to antitrust regulation
19. Firms that have selected a related diversification corporate-level strategy seek to exploit
a.
control shared among business-unit managers.
b.
economies of scope between business units.
c.
the favorable demand of buyers.
d.
market power.
23. The acquisition of Gillette Co. by Procter & Gamble will probably result in activity sharing because P&G has a reputation for technology transfer: the ability to take technology used in one brand and apply it to another brand. This is an example of
a.
operational relatedness.
b.
corporate relatedness.
c.
vertical integration.
d.
virtual integration.
25. Research has shown that horizontal acquisitions
a.
tend to have disappointing financial results in the long run.
b.
are being replaced by virtual acquisitions.
c.
result in lower levels of performance than unrelated acquisitions.
d.
are able to use activity sharing to successfully create economies of scope.
29. In related linked diversified firms, ____ are a complex set of resources that link the different businesses through managerial and technological knowledge, experience, and expertise.
a.
corporate core competencies
b.
strategies
c.
support activities
d.
intangible assets
31. Multipoint competition occurs when
a.
firms have multiple retail outlets.
b.
firms have multiple products in their primary industry.
c.
diversified firms compete against each other in several markets.
d.
firms have diversified portfolios of companies.
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.
34. Acquisitions to increase market power require that the firm have a ____ diversification strategy.
a.
unrelated
b.
related
c.
dominant-business
d.
single business
35. When diversification results in two companies, such as UPS and FedEx, simultaneously competing in numerous markets, this is called ____ competition.
a.
multiple
b.
multiportal
c.
multipoint
d.
mutiplicit
39. Backward integration occurs when a company
a.
produces its own inputs.
b.
owns its own source of distribution of outputs.
c.
is concentrated in a single industry.
d.
is divesting unrelated businesses.
43. Specialty Steel, Inc., needs a particular type of brick to line its kilns in order to safely achieve the high temperatures needed for the unusually strong steel it produces. The clay to make this brick is very rare and only two brick plants in the . make this type of brick. Specialty Steel has decided to buy one of these brick plants. This is an example of
a.
backward integration.
b.
forward integration.
c.
horizontal integration.
d.
virtual integration.
45. The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace
a.
outsourcing.
b.
unrelated diversification.
c.
de-integration.
d.
vertical integration.
46. Disney has been successful both in the sharing of activities among divisions and in the transfer of knowledge among divisions. Disney can be said to have created
a.
dynamic stability.
b.
inimitable competencies.
c.
cross-fertilization.
d.
synthesis.
48. Firms are increasingly moving away from ____ integration and toward ____ integration.
a.
virtual; vertical
b.
virtual; virtuous
c.
virtuous; vertical
d.
vertical; virtual
ANS: D PTS: 1 DIF: Medium REF: 163
OBJ: 06-04 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control
50. Which type of diversification is most likely to create value through financial economies?
a.
related constrained
b.
operational and corporate relatedness
c.
unrelated
d.
related linked.
55. Successful unrelated diversification through restructuring is typically accomplished by
a.
focusing on mature, low-technology businesses.
b.
a “random walk” of good luck in picking firms to buy.
c.
seeking out high technology firms in high growth industries.
d.
a top management team that is not constrained by pre-established ideas of how the firm’s portfolio should be developed.
56. The risk for firms that follow the unrelated dive