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Exam 6: Corporate-Level Strategy: Creatingvalue Through Diversification

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Question 51

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A Cash Cow,in the BCG framework,refers to a business that has _______________.

A) high market growth and relatively high market share
B) relatively low market share and low market growth
C) relatively low market share and high market growth
D) low market growth and relatively high market share

E) A) and D)
F) B) and C)

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Question 52

Multiple Choice

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In managing the corporate portfolio,the BCG matrix would suggest that __________.

A) Dogs should be invested in to increase market share and become Cash Cows
B) Stars are in low growth markets and can provide excess cash to fund other opportunities
C) Cash Cows require substantial cash outlays to maintain market share
D) Question Marks can represent future Stars if their market share is increased

E) B) and D)
F) A) and C)

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Question 53

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In the BCG Matrix,a business that has a low market share in an industry characterized by high market growth is termed a ____________.

Corporate-level strategy focuses on gaining short-term revenue through managing operations in multiple businesses.

Explain the uses and limitations of portfolio management matrices such as the growth-share matrix developed by the Boston Consulting Group (BCG).

Gillette developed the Fusion and Mach 3 shaving systems that created superior customer value as a result of their core competency in research and development.

Which of the following is not a reason for merger and acquisition failures?

Benefits derived from horizontal and hierarchical relationships are mutually exclusive.

Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements.

Core competencies do not create value in a business.

Portfolio management matrices generally consist of two axes that reflect industry or market growth and the market share of a business.

What are the primary benefits and risks associated with unrelated diversification?

Sharing core competencies is one of the primary potential advantages of diversification.In order for diversification to be most successful,it is important that _____________.

Portfolio management matrices are applied to what level of strategy?

One of the obligatory aspects of strategic alliances is the dependence on written contracts to delimit responsibilities and enforce compliance.

Cooper Industries has followed a successful strategy of related diversification.There are few similarities in the products it makes or the industries in which it competes.

What are the primary benefits and risks associated with related diversification?

Verizon Wireless and ILS Technology have a _________ whereby Verizon integrates technology developed by ILS to improve its machine-to machine (M2M) data transmission systems.M2M systems allow firms to securely transmit data to and from various devices.

Antitakeover tactics include all of the following EXCEPT _________.

Cooperative relationships such as __________ have potential advantages such as entering new markets,reducing manufacturing (or other) costs in the value chain,and developing and diffusing new technologies.