CHAPTER 8&9 BSG QUESTIONS &
DETAILED CORRECT ANSWERS ALL
PASSED
Which of the following are negatives or disadvantages of pursuing unrelated
diversification strategies? - Correct Answer ✔✔ No potential for competitive advantage
beyond any benefits of corporate parenting and what each individual business can
generate on its own
Calculating quantitative attractiveness ratings for the industries a company has
diversified into involves - Correct Answer ✔✔ selecting a set of industry attractiveness
measures, weighting the importance of each measure, rating each industry on each
attractiveness measure, multiplying the industry ratings by the assigned weight to obtain
a weighted rating, adding the weighted ratings for each industry to obtain an overall
industry attractiveness of all the industries, both individually and as a group.
Which of the following is not part of the procedure for evaluating the pluses and
minuses of a diversified company's strategy and deciding what actions to take to
improve the company's performance? - Correct Answer ✔✔ Conducting a SWOT
analysis of each business the company has diversified into
The top-level executive task of crafting a diversified company's overall or corporate
strategy includes which one of the following? - Correct Answer ✔✔ Picking new
industries to enter and deciding on the means of entry
Once a company has diversified into a collection of related or unrelated businesses and
concludes that some strategy adjustments are needed, which one of the following is not
one of the main strategy options that a company can pursue? - Correct Answer ✔✔
Have all of the company's businesses under a common brand name and craft new
initiatives to build/enhance the reputation of this brand name worldwide
Creating added long-term value for share-holders via diversification requires - Correct
Answer ✔✔ building a multi-business company where the whole is greater than the sum
of its parts--such 1+1=3 effects are called synergy
Which one of the following is not an example of an economy of scope - Correct Answer
✔✔ building a larger plant or distribution center for a particular business that can
operated more cost efficiently
Strategic fit exists when the value chains of different businesses are sufficiently similar
to present such opportunities as - Correct Answer ✔✔ transferring competitively
valuable resources and capabilities form one business to enhance the competitiveness
DETAILED CORRECT ANSWERS ALL
PASSED
Which of the following are negatives or disadvantages of pursuing unrelated
diversification strategies? - Correct Answer ✔✔ No potential for competitive advantage
beyond any benefits of corporate parenting and what each individual business can
generate on its own
Calculating quantitative attractiveness ratings for the industries a company has
diversified into involves - Correct Answer ✔✔ selecting a set of industry attractiveness
measures, weighting the importance of each measure, rating each industry on each
attractiveness measure, multiplying the industry ratings by the assigned weight to obtain
a weighted rating, adding the weighted ratings for each industry to obtain an overall
industry attractiveness of all the industries, both individually and as a group.
Which of the following is not part of the procedure for evaluating the pluses and
minuses of a diversified company's strategy and deciding what actions to take to
improve the company's performance? - Correct Answer ✔✔ Conducting a SWOT
analysis of each business the company has diversified into
The top-level executive task of crafting a diversified company's overall or corporate
strategy includes which one of the following? - Correct Answer ✔✔ Picking new
industries to enter and deciding on the means of entry
Once a company has diversified into a collection of related or unrelated businesses and
concludes that some strategy adjustments are needed, which one of the following is not
one of the main strategy options that a company can pursue? - Correct Answer ✔✔
Have all of the company's businesses under a common brand name and craft new
initiatives to build/enhance the reputation of this brand name worldwide
Creating added long-term value for share-holders via diversification requires - Correct
Answer ✔✔ building a multi-business company where the whole is greater than the sum
of its parts--such 1+1=3 effects are called synergy
Which one of the following is not an example of an economy of scope - Correct Answer
✔✔ building a larger plant or distribution center for a particular business that can
operated more cost efficiently
Strategic fit exists when the value chains of different businesses are sufficiently similar
to present such opportunities as - Correct Answer ✔✔ transferring competitively
valuable resources and capabilities form one business to enhance the competitiveness
