Strat MGMT Chapter 8 Exam Questions With
100% Correct Answers 2024/2025
the top level executive task of crafting a diversfied companys overall or corporate strategy does not
include which of the following 1
Choosing the most appropriate value chain for each of the businesses
Diversification becomes a prime strategic option for a single business company in all but which of the
following situations 3
When a company has a greater number of resources/capability deficiences than resources/capability
strengths
To create longterm economic value for shareholders by diversfying into one or more new businesses,
a company must 4
diversiying into businesses that pass the industry attractiveness test, cost of entry test, and the better-
off test
Businesses are said to be "related" when 5
they possess competitively valuable cross-business value chain-matchups
Which one of the following is not one of the appeals of related diversification 6
it is particularly well-suited for minimizing business risk and captuing valuable industry attractiveness
fits
Which of the following is not an example of economy of scope 7
Building a larger plant or distribution center that can be operated more cost efficiently
Diversifying into related businesses where competitively valuable strategic fit benefits can be
captured and turned into a competitive advantage over business rivals whoe operations do not offer
comparable strategic-fit benefits 8
is what fuels 1 + 1 = 3 gains in shareholder value -- the necessary outcome for satisfying the better off
test and proving the business merit of a company's diversifcation effort
The basic premise of unrelated diversification is that 9
any company or business that can be acquired on good financial terms and that hs satisfactory growth
and earnings potential represents a good acquistition and a good business opportunity
Which one of the following is not one of the appeals of unrelated diversification 10
it is quicker and easier to build a competitive advantage over undiversified or less-diversified
companies
which one of the following is not something that corporate executives committed to a strategy of
unrelated diversification can do to aid efforts to achieve companywide financial results above and
beyond what the individual businesses could achieve as stand-alone entities 11
be shrewed in identifying opportunities to acquire businesses that possess exceptionally good
resource fits and or that can signifcantly boose sales and market share by incorportating use of the
parnet company's technological expertise
100% Correct Answers 2024/2025
the top level executive task of crafting a diversfied companys overall or corporate strategy does not
include which of the following 1
Choosing the most appropriate value chain for each of the businesses
Diversification becomes a prime strategic option for a single business company in all but which of the
following situations 3
When a company has a greater number of resources/capability deficiences than resources/capability
strengths
To create longterm economic value for shareholders by diversfying into one or more new businesses,
a company must 4
diversiying into businesses that pass the industry attractiveness test, cost of entry test, and the better-
off test
Businesses are said to be "related" when 5
they possess competitively valuable cross-business value chain-matchups
Which one of the following is not one of the appeals of related diversification 6
it is particularly well-suited for minimizing business risk and captuing valuable industry attractiveness
fits
Which of the following is not an example of economy of scope 7
Building a larger plant or distribution center that can be operated more cost efficiently
Diversifying into related businesses where competitively valuable strategic fit benefits can be
captured and turned into a competitive advantage over business rivals whoe operations do not offer
comparable strategic-fit benefits 8
is what fuels 1 + 1 = 3 gains in shareholder value -- the necessary outcome for satisfying the better off
test and proving the business merit of a company's diversifcation effort
The basic premise of unrelated diversification is that 9
any company or business that can be acquired on good financial terms and that hs satisfactory growth
and earnings potential represents a good acquistition and a good business opportunity
Which one of the following is not one of the appeals of unrelated diversification 10
it is quicker and easier to build a competitive advantage over undiversified or less-diversified
companies
which one of the following is not something that corporate executives committed to a strategy of
unrelated diversification can do to aid efforts to achieve companywide financial results above and
beyond what the individual businesses could achieve as stand-alone entities 11
be shrewed in identifying opportunities to acquire businesses that possess exceptionally good
resource fits and or that can signifcantly boose sales and market share by incorportating use of the
parnet company's technological expertise
