BSG Final Exam Questions and Answers Already Passed

Brinker International operates restaurants in several different segments of the casual dining market. This is a. a relatively high level of diversification. b. an example of product diversification. c. unlikely to reduce variability in the firm's profitability since the restaurants are all in the casual dining category. d. an example of related linked diversification. Ansb. an example of product diversification. On the most basic level, corporate-level strategy is concerned with ____ and how to manage these businesses. a. whether the firm should invest in global or domestic businesses b. what product markets and businesses the firm should be in c. whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring d. whether to integrate backward or forward. Ansb. what product markets and businesses the firm should be in Which acquisition would be considered the LEAST related? a. a candy manufacturer purchases a chemical laboratory specializing in food flavorings. b. a chain of garden centers acquires a landscape architecture firm. c. a hospital acquires a long-term care nursing home. d. an upscale "white-tablecloth" restaurant chain acquires a travel agency Ansd. an upscale "white-tablecloth" restaurant chain acquires a travel agency The more "constrained" the relatedness of diversification, a. the less likely the firm's portfolio of businesses will reduce the firm's variability in profitability. b. the wider the variation in the portfolio of businesses owned by the firm. c. the more links there are among the businesses owned by an organization. d. lower the proportion of total organizational revenue derived from the dominant-business. Ansc. the more links there are among the businesses owned by an organization. Which of the following is NOT a limit to vertical integration? a. bureaucratic costs b. the loss of flexibility through investment in specific technologies c. capacity balance and coordination problems from changes in demand d. imitation of core technology by potential competitors Ansd. imitation of core technology by potential competitors Horizontal acquisitions in the video rental industry are typically intended to a. take advantage of innovations created by the other firm. b. reduce some of the overcapacity in the industry. c. control more parts of the value chain. d. overcome barriers to entry Ansb. reduce some of the overcapacity in the industry.