FSU MAN 4720 EXAM 2 STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED SOLUTIONS || 100% GUARANTEED PASS NEWEST VERSION

FSU MAN 4720 EXAM 2 STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED SOLUTIONS || 100% GUARANTEED PASS NEWEST VERSION 1. Corporate Level Strategy vs Business Level Strategy - ANSWER Corporate-Level Strategy: What industries or market segments should we be in? - Specifies actions taken by the firm to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. Business Level Strategy: How are we going to compete in the industry or market segment we are in? - Each business unit in a diversified firm chooses a business-level strategy as its means of competing in its individual product markets. 2. Levels of Diversification: Low Level - ANSWER Single Business: 95% or more revenue comes from a single business Dominant: Between 70% and 95% of revenue comes from a single business 3. Levels of Diversification: Moderate to High - ANSWER Related constrained: Less than 70% of revenue comes from a single business and all businesses share product, technological and distribution linkages. Ex. Pepsi Related Linked (mixed related and unrelated: Less than 70% of revenue comes from the dominant business, and there are only limited links between businesses. Ex. Amazon 4. Levels of Diversification: Very High Levels - ANSWER Unrelated Diversification: Less than 70% of revenue comes from the dominant business, and there are no common links between businesses. Ex. Samsung 5. Value Creating Diversification - ANSWER 1. Economies of Scope: sharing activities, transferring core competencies 2. Market Power: blocking competitors thru multipoint competition 3. Financial Economies: efficient internal capital allocation, business restriction 1. Operational Relatedness/Corporate Relatedness: High/Low 2. Operational Relatedness/Corporate Relatedness: High/High 3. Operational Relatedness/Corporate Relatedness: Low/Low 4. Operational Relatedness/Corporate Relatedness: Low/High - ANSWER Operational Relatedness: Sharing activities between businesses 6. Disney Industry Analysis - ANSWER Supplier Power: weak Buyer Power: weak Threat of New Entrants: weak Threat of Substitute Goods: weak Rivalry Among Existing Firms: high among established rivals 7. Disney Tangible Resources - ANSWER Financial Resources: ABC 1st to invest, park sponsors Entertainment segments Physical: Land, Human Resource/ Labor, Capital and Entrepreneurship 8. Disney Intangible Resources - ANSWER HR: Leadership excellence ,Employee engagement , Quality of Service, Business excellence Brand Loyalty Customer experience 9. Disney Capabilities - ANSWER •Having a strong brand •Being able to meet customers needs •Having innovation •Competitive Capabilities •Market achievement •Resources 10. Disney CORE COMPETENCIES: - ANSWER Imagination and Engineering- Creating value to their brand bringing imaginary characters to life and leaving an everlasting Memories on customers and their family. 11. **The Publicis Groupe has three major groups of business (advertising, media, and digital) that share resources and activities. The Publicis Groupe is using which diversification strategy? - ANSWER related constrained 12. Baby Doe's, a designer and manufacturer of children's clothing, has decided to purchase a retail chain specializing in children's clothing. This purchase is a(n) - ANSWER vertical acquisition 13. **Which of the following is a framework for how a firm will create, deliver, and capture value? - ANSWER business model 14. Cherrywood Fine Furniture Company finds itself with excess capacity in its plant and equipment for furniture manufacturing. This excess capacity will be useful in - ANSWER related diversification projects 15. **According to the text, which company differentiates itself by providing a very wide assortment of high-quality foods while focusing on Hispanic consumers? - ANSWER Goya Foods 16. Which pair of firms has the LEAST resource similarity? - ANSWER small, family-owned Italian restaurant; Olive Garden 17. **Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, what action do shareholders prefer that corporations take? - ANSWER Keep free cash flows for investment in acquisitions 18. **Which of the following is NOT a characteristic of a successful acquisition? - ANSWER Investments in advertising and image building are made quickly. 19. **New Balance Athletic Shoes target baby boomers' needs for well-fitting shoes. The company is unique in that it offers a very broad range of shoe widths. A realistic potential risk New Balance runs in this focused differentiation strategy includes the possibility that - ANSWER a competitor may be able to better use flexible manufacturing systems to make shoes with an individualized fit. 20. **In general, firms are more aware of competitors that have similar resources and that - ANSWER compete against the firm in multiple markets. 21. **Blue Apron is committed to helping customers make good choices in what they eat by delivering food directly to consumers. Blue Apron had a __________ model and uses a __________ strategy - ANSWER subscription, differentiation 22. **Which attribute of successful acquisition strategies involves maintaining a low or moderate level of debt after the acquisition? - ANSWER Financial slack 23. **Two firms, such as Apple and Samsung, are direct and mutually acknowledged competitors. What does this mean with regards to their market commonality and resource similarity? - ANSWER They have high market commonality and high resource similarity.