BUS498 Chapter 8 HW

The fact that Apple is able to secure critical supplies and facilitate investments in specialized assets (chips for Apple) is considered a(n) a. example of full vertical integration. b. example of increasing costs. c. benefit of vertical integration. d. example of vertical disintegration. e. benefit of vertical disintegration.

c. benefit of vertical integration.

From the textbook material, when all activities of the value chain are conducted within the boundaries of the firm, the firm is said to be a. wholly value chain integrated. b. taper integrated. c. fully vertically integrated. d. vertically disintegrated. e. completely value chain integrated.

c. fully vertically integrated.

- Diversification most often tied to good performance. - A tool used in corporate portfolio planning. - Tata is an example firm successfully using this. - Process of reorganizing activities to refocus a firm.

- Related Diversification - BCG Growth-Share Matrix - Unrelated Diversification - Restructuring

In Paris, France, a new provider was able to negotiate with the mayor and get outdoor ad space in exchange for a bicycle rental program. What is one feature of Paris that he credits for helping get this done (something that is absent in many other cities)? a. budget crisis and new revenues b. historical context in Europe c. strong top-down management d. high gasoline prices e. history of biking in the city

c. strong top-down management

Corporate Strategy helps managers understand which strategy question? a. How should the firm compete? b. How should the firm expand? c. How can the firm buy out a competitor? d. Where should the firm expand? e. Where should the firm compete?

e. Where should the firm compete?

Disney's ability to leverage its characters across its network of theme parks, media networks and movies, and consumer products is an example of a corporate a. integration advantage. b. expansion into new geographies. c. vertical advantage. d. synergy advantage. e. parenting advantage.

e. parenting advantage.

The selling of Busch Entertainment, a theme park unit that owns SeaWorld, by Belgium-based AB InBev after the acquisition of Anheuser-Busch by InBev to ensure a focus on AB InBev's core business, is an example of a. franchising. b. taper integration. c. a diversification premium. d. a principal-agent problem. e. restructuring.

e. restructuring.

When HTC, a manufacturer of phone hardware, started to design its own smartphones, HTC engaged in a. taper forward integration. b. backward horizontal integration. c. backward vertical integration. d. forward vertical integration. e. backward vertical disintegration.

c. backward vertical integration.

Professor Mitchell mentioned that America's large cities are very complex to manage. If we think of an elected mayor as the agent and the voters as principals, which of the following best reflects the principal-agent problem? a. The mayor acts in his own interests rather than the voters' interests. b. The voters decide the mayor has done a poor job and elect someone else into the office. c. The mayor gives large bonuses to his staff to encourage better teamwork. d. The mayor partners with mayors of other cities for better transportation solutions. e. The voters influence the mayor to act in their collective interests.

a. The mayor acts in his own interests rather than the voters' interests.

Apple's primary reason to acquire P.A. Semi was to a. add the talent of P.A. Semi's engineers to Apple's workforce to help them build custom chips for Apple devices. b. move ownership of activities closer to the end point of the value chain. c. increase revenues by becoming a manufacturer of microprocessors for all mobile devices. d. develop an open-source chip. e. become more dependent on suppliers of core components.

a. add the talent of P.A. Semi's engineers to Apple's workforce to help them build custom chips for Apple devices.

The relationship between the type of diversification and overall firm performance a. takes on the shape of an inverted U so related diversification has the best performance. b. takes on the shape of a U where modest diversification has the worst performance. c. is positive, meaning that more diversification always leads to higher firm performance. d. is negative, meaning that more diversification always leads to lower firm performance. e. there is no relationship between the type of diversification and overall firm performance.

a. takes on the shape of an inverted U so related diversification has the best performance.

Apple acquiring P.A. Semi is an example of a. forward horizontal integration. b. backward vertical integration. c. backward value chain integration. d. forward vertical integration. e. forward value chain integration.

b. backward vertical integration.

Strategic business units that compete in a low-growth market but hold considerable market share are called _________. Their earnings and cash flows are high and stable. a. dogs b. cash cows c. stars d. question marks e. piggy banks

b. cash cows

Disney's expansion from short films to animated films to live action films to television is an example of a. expansion into vertical markets to address critical supplier power. b. expansion into new markets by leveraging a core capability. c. expansion into new geographies by leveraging a core capability. d. expansion into new geographies by leveraging assets. e. expansion into vertical markets by leveraging a core asset.

b. expansion into new markets by leveraging a core capability.

Participating in collaborations to solve large-scale problems entails organizations choosing to "buy" rather than "make" some of their inputs. Reaching out into the market for these relationships can bring benefits. However, expanding beyond the firm's boundaries also has drawbacks. Which of the following is an advantage of "buying" key relationships outside the organization? a. information asymmetries b. flexibility in selecting partners c. search costs to find the right partners d. enforcement of agreements e. incomplete contracting

b. flexibility in selecting partners

Professor Mitchell mentioned that transportation issues require cross-disciplinary academic teamwork to be successful. If we use the continuum from markets to firms to represent different academic working arrangements, which type of structure best represents the one he is describing here? a. parent-subsidiary relationship activities performed within the academic department b. strategic alliances c. franchising of research transactions d. arm's-length market transactions

b. strategic alliances