BUSI 400 Read & Interact Dess, McNamara, Eisner, & Lee Chapter 6 solutions complete answers

BUSI 400 Read & Interact Dess, McNamara, Eisner, & Lee Chapter 6 solutions complete answers 

 

What should senior management's primary motivation be for implementing a diversification strategy?

 

Companies that implement a related diversification strategy may benefit from which of the following? (Check all that apply.)

 

A firm's core competencies include which of the following? (Check all that apply.)

 

______ is when value-chain activities of two or more businesses are performed by only one of the businesses.

 

Firms pursuing differentiation strategies might engage in ______, such as using a shared order-processing system.

 

The process of firms expanding their operations by entering new businesses is called ______.

 

______ refers to firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment.

 

______ is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.

 

One way to increase negotiating power with suppliers is ______.

 

______ refers to a firm's strategic resources that reflect the collective learning in the organization.

 

______ is an expansion or extension of the firm by integrating preceding or successive production processes.

 

Sharing activities can potentially provide which of the following two payoffs? (Check all that apply.)

 

Which of the following are examples of the risks of vertical integration? (Check all that apply.)

 

While sharing activities may decrease costs, increase revenues, and enhance product differentiation, it sometimes can have an unintended negative effect, such as ______.

 

Which of the following are transaction-related costs, according to the transaction cost perspective? (Check all that apply.)

 

Which of the following are the two types of market power? (Check all that apply.)

 

Which of the following are ways that synergy is created through the use of unrelated diversification? (Check all that apply.)

 

______ is the improvement in bargaining position relative to suppliers and customers.

 

Parenting advantage is the ______.

 

When a company incorporates more processes toward the original source of raw materials, it is called ______ integration.

 

Which of the following is one of the best-known portfolio management frameworks?

 

Which of the following are benefits of vertical integration? (Check all that apply.)

 

The primary goal in selecting the best means of diversification should be which vehicle will ______.

 

______ is a perspective where every market transaction involves specific costs.

 

Which of the following are motives for and benefits of using mergers and acquisitions as a strategy? (Check all that apply.)

 

Which of the following statements regarding unrelated diversification are correct? (Check all that apply.)

 

Which of the following are ways that parent companies create value through their management expertise? (Check all that apply.)

 

______ is the exit of a business from a company's portfolio.

 

Which of the following are quadrants in the Boston Consulting Group's portfolio matrix? (Check all that apply.)

 

Which of the following are true about engaging in internal development? (Check all that apply.)

 

Which of the following are ways a firm can achieve the benefits of diversification? (Check all that apply.)

 

Which of the following is an example of how managerial motives can erode value creation?

 

Mergers and acquisitions have been especially popular in high-technology and knowledge-based industries, because ______. (Check all that apply.)

 

______ is/are a result of managers' actions to grow the size of their firms not to increase long-term profitability but to serve managerial self-interest.

 

Which of the following are objectives that divesting a business can accomplish for the parent? (Check all that apply.)

 

Which of the following are traits of a healthy ego? (Check all that apply.)

 

______ is entering a new business through investment in new facilities. It is often called corporate entrepreneurship and new venture development.

 

______ are managers' actions to avoid losing wealth or power as a result of a hostile takeover.

 

Which of the following statements about shareholders and managers are true? (Check all that apply.)

 

______ is a payment by a firm to a hostile party for the firm's stock at a premium, made when the firm's management feels that the hostile party is about to make a tender offer.

 

Which of the following statements about growth for growth's sake are correct? (Check all that apply.)

 

The main purpose of a golden parachute is to protect ______.

 

When managers attempt to shape a firm's strategy to serve their selfish interests rather than maximizing long-term shareholder value, they are guilty of ______.

 

Which of the following are antitakeover tactics that managers use? (Check all that apply.)

 

In addition to preventing a hostile takeover, greenmail ______.

 

A(n) ______ is a prearranged contract with managers specifying that, in the event of a hostile takeover, the target firm's managers will be paid a significant severance package.

 

 

 
______ are/is used by a company to give shareholders certain rights in the event of takeover by another firm.
 
 
______ is the combining of two or more firms into one new legal entity.
 
 
______ is the incorporation of one firm into another through a purchase.
 
 
 
A poison pill is also known as ______.
 
 
 
The process of firms expanding their operations by entering new businesses is called ______
 
 
 
 
 
 
 
 
 
 
 
 
 

 
True or false: Internal development is often more time-consuming than growing through mergers or acquisitions.
 
 
 
True or false: Portfolio management tools have been widely used in American corporations.
 
 
 
Which of the following are among the issues that should be considered in deciding whether to vertically integrate?
 
 
 
 
 
 
 
 
 

Which of the following are potential disadvantages of internal development?
 
 
Which of the following are primary potential benefits of diversification into unrelated businesses?
 
 
 

 
Which of the following issues are related to the takeover premium of a merger or acquisition?
 
 
 

 

 

Coordinating the different stages of the value chain that become internalized within the firm results in an increase in ______ costs.
 
 
Examples of a gasoline retailer gaining economies of scope by going into alternative sources of fueling vehicles include which of the following? (Check all that apply.)
 
 
Firms may diversify into related businesses where the primary potential benefits are derived from ______ relationships that allow for sharing tangible and intangible resources.
 
 
An issue that a firm should consider in deciding to vertically integrate is whether ______.
 
 
______ is the corporate office's intervention in a new business that substantially changes the assets, capital structure, and/or management of the business unit.
 
 
One way of achieving cost savings by sharing activities among business units is to apply economies of ____ in purchasing.
 
 
 
 
 
 
 
 
 
 
 
 

______ refers to cost savings from leveraging core competencies or sharing related activities among businesses in the corporation.
 
 
To help create value and build synergy among the businesses of a corporation, the corporation's _________ competences must be difficult for competitors to find substitutes for or to imitate.
 
 
 

When transaction costs are lower than administrative costs, vertical integration becomes an attractive strategy.
 
 
 
Which of the following are criteria that a core competency must meet in order to create value for a corporation? (Check all that apply.)
 
 
Which of the following are limitations with portfolio models like the Boston Consulting Group matrix? (Check all that apply.)
 
 
 
 
 
 
 
 
 
 

Which of the following are potential limitations of mergers and acquisitions? (Check all that apply.)
 
 
Which of the following are primary potential benefits of diversification into related businesses? (Check all that apply.)
 
 
Which of the following are some problems with using portfolio models? (Check all that apply.)
 
 
 
 
 
 
 
 

Which of the following are the three main purposes of portfolio management? (Check all that apply.)
 
 
Which of the following are true about cost savings from sharing activities? (Check all that apply.)
 
 
Which of the following are ways that a company may restructure a newly acquired business unit? (Check all that apply.)