Capstone Exam 3 study guide
When large incumbent firms by startup companies, the transaction is generally considered as an:
Acquisition.
The talk group, Warren Buffett's Berkshire Hathaway and the Japanese Yamaha group have several strategic business units under one corporate umbrella and are pursuing an unrelated diversification strategy. We would refer to these businesses as.
Conglomerates.
_________Which are incurred when pursuing a related diversification strategy or a function of the number, size and types of businesses that are linked to one another.
Coordination costs.
Horizontal integration through mergers and acquisitions can help firms strengthen their competitive positions by increasing
Differentiation.
Which of the following foreign entry modes primarily involves producing goods in one country to sell and another?
Exporting
In Michael Porter's diamond framework, _________ conditions describe a country's endowments in terms of natural, human, and other resources.
Factor
Google, the leader in online search and advertisement, engaged in a number of smaller acquisitions of Tech Ventures. It did this in order to:
Fill gaps in its competency lineup.
Which of the following types of organizations comparatively requires the lowest levels of investment and control?
Franchising
The process of closer integration and exchange between different countries and peoples worldwide is.
Globalization
Each stage of the vertical value chain typically represents a distinct _____ in which a number of different firms are competing.
Industry
Because keeping low cost is critical to Ikea's value innovation, it's switched from a(n)
International strategy into a global standardization strategy.
Which of the following is a common drawback of a non-equity alliance?
Lack of trust between partners.
What causes the winner's curse?
Overpaying for an acquisition.
What is the main reason that most mergers and acquisitions negatively affect shareholder value?
Promised synergies never take place.
Disney became the world leading media company to a large extent by pursuing a corporate strategy of.
Related linked diversification.
The Boston Consulting Group Growth share matrix locates a firm's individual strategic business units in which two dimensions?
Relative market share and speed of market growth.
The process of alliance management begins with.
Selecting the best possible partner.
What is horizontal integration?
The process of merging with a competitor at the same stage of the value chain.
Which of the following factors is the most important determinant of economic distance?
The wealth and per capita income of consumers
A firm follows a _____. When less than 70% of its revenues come from a single business and there are a few, if any, linkages among its businesses.
Unrelated diversification strategy.
When does a merger between two companies typically occur?
When two firms of comparable size join to form a combined entity.
Which of the following motivations for business growth involves principal agent problems?
motivating managers
Michael Porter's diamond framework explains
national competitive advantage
_____ are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services to lead to competitive advantage
strategic alliances
Which of the following stakeholders of a company would most likely be responsible for formulating a corporate strategy?
the chief executive officer
Decisions relating to "what stages of the industry value chain to participate in" determine a firm's
vertical integration
_____ is best described as a firm's ownership of its production of needed inputs or of the channels by which it distributes its outputs
vertical integration
During the period of globalization 1.0 the motive entry into foreign markets primarily involved.
Exporting goods
How did Canada, Mexico, and the United States reduce the administrative and political distance between them?
By establishing the North American Free Trade Agreement (NAFTA)
Which of the following entry nodes was used extensively and go globalization 1.0 stage?
Exports