MAN4720 Exam Prep: Corporate & Business
Strategy, Diversification, and Competitive
Dynamics Verified Questions Provided with
A+ Graded Rationales Latest Updated 2026
Why can unrelated diversification improve capital allocations?
Better internal information and resource control ➡️
Lower transaction costs versus external
markets
Challenges of unrelated diversification?
Hard to coordinate, little synergy, complex management
Virgin Group strategy type?
Related-linked diversification
Why high-tech/service firms are risky to restructure?
Knowledge and skills are intangible and hard to transfer
Corporate-level strategy concerns?
Managing multiple businesses to create synergy
Types of competitive actions?
Strategic (big, long-term) vs Tactical (small, reversible)
High-debt acquisition needs?
Strong cash flow and effective integration
Stuck in the middle means?
No clear cost or differentiation advantage
Better long-term: downsizing or downscoping?
Downscoping
CEO motive for unrelated acquisitions?
Power, compensation, personal job security
, How to judge corporate-level strategy value?
Synergy: more value together than separate
Negative of leveraged buyouts?
Excessive debt limiting growth, risk of distress
Purpose of related constrained diversification?
Share resources and capabilities across businesses
Watch company response to declining demand?
Diversify into new product markets
Risk of unrelated diversification in developed markets?
Weak synergy and poor performance
What triggers stronger competitive response?
Strategic actions
Goal of Facebook acquiring Instagram?
Eliminate competitor and increase market power
Fast-cycle market false statement?
Products are too costly to imitate
How Disney increases market power?
Leverages brand and IP across businesses
Not a risk of differentiation strategy?
Customers see uniqueness as too valuable
What is business-level strategy?
How the firm competes in one market
Why attack rivals when weak?
Reduces their ability to compete
High market dependence leads to?
Strong retaliation to protect revenue
Strategy, Diversification, and Competitive
Dynamics Verified Questions Provided with
A+ Graded Rationales Latest Updated 2026
Why can unrelated diversification improve capital allocations?
Better internal information and resource control ➡️
Lower transaction costs versus external
markets
Challenges of unrelated diversification?
Hard to coordinate, little synergy, complex management
Virgin Group strategy type?
Related-linked diversification
Why high-tech/service firms are risky to restructure?
Knowledge and skills are intangible and hard to transfer
Corporate-level strategy concerns?
Managing multiple businesses to create synergy
Types of competitive actions?
Strategic (big, long-term) vs Tactical (small, reversible)
High-debt acquisition needs?
Strong cash flow and effective integration
Stuck in the middle means?
No clear cost or differentiation advantage
Better long-term: downsizing or downscoping?
Downscoping
CEO motive for unrelated acquisitions?
Power, compensation, personal job security
, How to judge corporate-level strategy value?
Synergy: more value together than separate
Negative of leveraged buyouts?
Excessive debt limiting growth, risk of distress
Purpose of related constrained diversification?
Share resources and capabilities across businesses
Watch company response to declining demand?
Diversify into new product markets
Risk of unrelated diversification in developed markets?
Weak synergy and poor performance
What triggers stronger competitive response?
Strategic actions
Goal of Facebook acquiring Instagram?
Eliminate competitor and increase market power
Fast-cycle market false statement?
Products are too costly to imitate
How Disney increases market power?
Leverages brand and IP across businesses
Not a risk of differentiation strategy?
Customers see uniqueness as too valuable
What is business-level strategy?
How the firm competes in one market
Why attack rivals when weak?
Reduces their ability to compete
High market dependence leads to?
Strong retaliation to protect revenue
