MGT 401 Final Exam Questions With correct
Answers
4 types of corporate strategies - CORRECT ANSWER✔✔-growth strategies,
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stability strategy, retrenchment, combination
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3 growth strategies - CORRECT ANSWER✔✔-horizontal integration, related
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diversification, conglomerate or unrelated diversification
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horizontal integration - CORRECT ANSWER✔✔-in the same industry; P&G
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detergents
related diversification - CORRECT ANSWER✔✔-related industries: share/transfer
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core competencies; vertical integration within supply chain:
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forward/downstream; backward/upstream
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example of forward vertical integration - CORRECT ANSWER✔✔-film exhibition
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for movie producers
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example of backward vertical integration - CORRECT ANSWER✔✔-publishing for
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Amazon and film production for Cineplex
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example of conglomerate or unrelated diversification - CORRECT ANSWER✔✔-
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holding company- berkshire hathaway; GE
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, ways to grow within growth strategies - CORRECT ANSWER✔✔-internal
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development, joint venture, acquisition, merger | | | |
stability strategy - CORRECT ANSWER✔✔-low growth, expansion too costly,
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uncertainty; Avoid anti-trust action, wait & see on environment
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3 retrenchment strategies - CORRECT ANSWER✔✔-turnaround, divestment,
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liquidation
combination strategy - CORRECT ANSWER✔✔-growth and retrenchment: seldom
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50/50, must classify which is more
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6 objectives of corporate strategy - CORRECT ANSWER✔✔-synergy or economies
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of scope from managing multiple businesses, market power, multipoint
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competition, provide direction, allocating resources better than market, reduce
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risk/diversify into other industries (controversial)
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what is multipoint competition? - CORRECT ANSWER✔✔-challenge competitors
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wherever they may be (no uncontested markets); aggressive competition reduces
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likelihood of attacks or price wars
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diversification concerns (8) - CORRECT ANSWER✔✔-most diversification ends in
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divesture, increased debt affects all division, may create new enemies,
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management loses focus, hard to align incentives, increased agency costs,
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diseconomies of management, culture clash among business units
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Answers
4 types of corporate strategies - CORRECT ANSWER✔✔-growth strategies,
| | | | | | | | |
stability strategy, retrenchment, combination
| | |
3 growth strategies - CORRECT ANSWER✔✔-horizontal integration, related
| | | | | | | |
diversification, conglomerate or unrelated diversification
| | | |
horizontal integration - CORRECT ANSWER✔✔-in the same industry; P&G
| | | | | | | | |
detergents
related diversification - CORRECT ANSWER✔✔-related industries: share/transfer
| | | | | | |
core competencies; vertical integration within supply chain:
| | | | | |
forward/downstream; backward/upstream
| |
example of forward vertical integration - CORRECT ANSWER✔✔-film exhibition
| | | | | | | | |
for movie producers
| |
example of backward vertical integration - CORRECT ANSWER✔✔-publishing for
| | | | | | | | |
Amazon and film production for Cineplex
| | | | |
example of conglomerate or unrelated diversification - CORRECT ANSWER✔✔-
| | | | | | | |
holding company- berkshire hathaway; GE
| | | |
, ways to grow within growth strategies - CORRECT ANSWER✔✔-internal
| | | | | | | | |
development, joint venture, acquisition, merger | | | |
stability strategy - CORRECT ANSWER✔✔-low growth, expansion too costly,
| | | | | | | | |
uncertainty; Avoid anti-trust action, wait & see on environment
| | | | | | | |
3 retrenchment strategies - CORRECT ANSWER✔✔-turnaround, divestment,
| | | | | | |
liquidation
combination strategy - CORRECT ANSWER✔✔-growth and retrenchment: seldom
| | | | | | | |
50/50, must classify which is more
| | | | |
6 objectives of corporate strategy - CORRECT ANSWER✔✔-synergy or economies
| | | | | | | | | |
of scope from managing multiple businesses, market power, multipoint
| | | | | | | | |
competition, provide direction, allocating resources better than market, reduce
| | | | | | | | |
risk/diversify into other industries (controversial)
| | | |
what is multipoint competition? - CORRECT ANSWER✔✔-challenge competitors
| | | | | | | |
wherever they may be (no uncontested markets); aggressive competition reduces
| | | | | | | | |
likelihood of attacks or price wars
| | | | | |
diversification concerns (8) - CORRECT ANSWER✔✔-most diversification ends in
| | | | | | | | |
divesture, increased debt affects all division, may create new enemies,
| | | | | | | | | |
management loses focus, hard to align incentives, increased agency costs,
| | | | | | | | | |
diseconomies of management, culture clash among business units
| | | | | | |
