Strategic Management - Ch. 5-9

A firm whose operations are human-capital intensive would most likely use which of the following entry modes? a. Licensing b. A cross-border acquisition c. Exporting d. A greenfield venture

A cross-border acquisition

MarTech is a technology firm. It must constantly develop product innovations and seek new markets. Its products are made up of a combination of hardware, requiring multiple component parts, and software which is regularly updated. What type of alliance network will MarTech use in order to develop additional competitive advantages? a. A stable alliance network b. A joint venture alliance network c. A dynamic alliance network d. A nonequity alliance network

A dynamic alliance network

In which of the following scenarios would a firm choose to downsize rather than downscope? a. A firm has excess resources after acquiring another firm. b. A firm wants to cut business units that are unrelated to its core business. c. A firm wants to correct managerial mistakes. d. A firm wants to build resources and expand operations.

A firm has excess resources after acquiring another firm

What is explicit collusion? a. A form of competition-reducing strategy in which several firms indirectly coordinate their production and pricing decisions by observing each other's actions and responses b. A form of competition-reducing strategy in which two or more firms negotiate directly to determine the amount to produce and the prices for the product c. A form of competition-reducing strategy in which firms do not take competitive actions against rivals d. A form of competition-reducing strategy in which firms share some of their resources from different stages of the value chain to create competitive advantage

A form of competition-reducing strategy in which two or more firms negotiate directly to determine the amount to produce and the prices for the product

In which of the following ways does the availability of tangible and intangible resources affect a firm's ability to create value through diversification? a. A resource has abundance and value. b. A resource is difficult to imitate and has abundance. c. A resource has rarity and value. d. A resource is difficult to substitute and has abundance.

A resource has rarity and value

Which of the following firms is more likely to take competitive action? a. A large firm b. A medium-sized firm c. A small firm d. Size is not a good predictor of the likelihood a firm will take competitive action.

A small firm

Ishanti owns the only yoga studio in town. However, a national gym is opening in a few months. Historically, businesses like hers have closed after the national chain opened nearby. Which of the following options should Ishanti implement? a. A competitive response b. A strategic action c. A strategic response d. A tactical action

A strategic action

A cross-border strategic alliance is: a. a strategy through which firms combine some of their resources to create a competitive advantage by competing in one or more product markets. b. an alliance in which firms share some of their resources from the same stage of the value chain. c. a strategy in which firms share some of their resources to create economies of scope. d. a strategy in which firms with headquarters in different countries decide to combine some of their resources to create a competitive advantage.

A strategy in which firms with headquarters in different countries decide to combine some of their resources to create a competitive advantage

What is an international diversification strategy? a. A strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into a potentially large number of geographic locations or markets b. An international strategy through which the firm seeks to achieve both global efficiency and local responsiveness c. An international strategy in which strategic and operating decisions are decentralized to the strategic business units in individual countries or regions for allowing each unit the opportunity to tailor its products to the local market d. A strategy through which the firm sells its goods or services outside its domestic market

A strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into a potentially large number of geographic locations or markets

Southern Poultry, a large poultry-growing operation, has agreed to be acquired by its' best customer, Chuck's Chicken 'N Biscuits, a popular regional chain of fast-food restaurants, to ensure the long-term health of the operation. This type of acquisition is called: a. a takeover. b. a vertical acquisition. c. a horizontal acquisition. d. a merger.

A vertical acquisition

A new family-owned organic grocery store has been successful since its grand opening nearly a year ago. With little competition in the area, the organic grocery store has been particularly successful in selling organic food to consumers. The grocer has just found out that Whole Foods will be starting construction on a new store nearby. The grocery store feels that its family ownership and locally grown food offerings give it a position in which to take action against the developing Whole Foods. However, as a small business, the organic grocery store does not have the financial means to launch a rivalry against Whole Foods. In this instance, the organic grocery store is missing which driver of competitive behavior? a. Awareness b. Motivation c. Ability d. The grocery is not missing any driver of competitive behavior.

Ability

Which of the following relates to a firm's resources and the flexibility they provide? a. Ability b. Awareness c. Incentive d. Motivation

Ability

Which of the following statements best explains how shareholders are affected by acquisitions? a. Acquired firms' shareholders often earn above-average returns as a result of acquisitions, whereas acquiring firms' shareholders often earn below-average returns as a result of acquisitions. b. Acquired firms' shareholders often earn above-average returns as a result of acquisitions, whereas acquiring firms' shareholders often earn returns that are close to zero as a result of acquisitions. c. Acquired firms' shareholders often earn below-average returns as a result of acquisitions, whereas acquiring firms' shareholders often earn above-average returns as a result of acquisitions. d. Both acquired and acquiring firms' shareholders often earn above-average returns as a result of acquisitions.

Acquired firms' shareholders often earn above-average returns as a result of acquisitions, whereas acquiring firms' shareholders often earn returns that are close to zero as a result of acquisitions

A jewelry firm has recently acquired its gem supplier. The jewelry firm prides itself on always being the first to predict and serve new trends. For example, the firm was one of the first to introduce rose gold jewelry pieces after research predicted a large demand. Which of the following attributes of the firm helps it to maintain a long-term competitive advantage in markets? a. Merged firm maintains a low to moderate debt position b. Acquisition is friendly c. Acquiring firm has financial slack d. Acquiring firm has a sustained and consistent emphasis on research and development (R&D) and innovation

Acquiring firm has a sustained and consistent emphasis on research and development (R&D) and innovation

Which of the following is an attribute of a successful acquisition? a. Merged firm maintains moderate to high debt position b. Acquisition is unfriendly c. Acquiring firm conducts ineffective due diligence to select target firms and effectively evaluate the target firms' health d. Acquiring firm has financial slack

Acquiring firm has financial slack

Corporate-level strategy is best described as: a. strategies a firm implements to gain a competitive advantage by selecting and managing a single business competing in several product markets. b. actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. c. actions a firm takes to gain a competitive advantage by selecting and managing one business competing in a single product market. d. strategies a firm implements to gain competitive advantage by selecting and managing a group of businesses competing in a single product market.

Actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets

Strategic competitiveness is achieved when a firm successfully manages political, economic, and other institutional risks while implementing its international strategies. The degree to which a firm achieves strategic competitiveness through international strategies is increased when they successfully implement: a. a national diversification strategy. b. an international expansion strategy. c. an international diversification strategy. d. political and economic risk analysis.

An international diversification strategy

Which of the following represents an example of an external incentive for value-neutral diversification? a. A company that is operating inefficiently and has an uncertain forecast b. A firm that has opportunities to transfer its capabilities to another profitable business area and spread its investment risk c. A company that has a predictable and steady revenue stream and is meeting its customers' needs efficiently d. An organization forced to pursue a new business unit because of changes in tax laws and regulations

An organization forced to pursue a new business unit because of changes in tax laws and regulations

How does diversification and firm size impact top managers of a firm? a. As a firm diversifies, its size increases, as does executive compensation. b. As a firm diversifies, its size decreases, as does executive compensation. c. As a firm diversifies, its size increases, while executive compensation decreases. d. As a firm diversifies, its size decreases, while executive compensation increases.

As a firm diversifies, its size increases, as does executive compensation

Which of the following is an advantage of pursuing diversification by entering into a greenfield venture? a. By taking advantage of intangible resources, such as experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources. b. By taking advantage of tangible resources, such as extra machinery, a new business can establish itself without paying the initial costs of machinery. c. By taking advantage of tangible resources through a greenfield venture, a business can claim to be environmentally friendly. d. By taking advantage of tangible resources, such as experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources.

By taking advantage of intangible resources, such as experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources

Interactions among the four determinants of national advantage influence a firm's: a. ability to be successful in its domestic market. b. choice of international business-level strategy. c. choice of national business-level strategy. d. competency within its domestic market

Choice of international business-level strategy

Which of the following is an example of multimarket competition? a. Company A makes only sedans and SUVs. Company B makes semi-trailer trucks that transport products to retailers. b. Company A prints coloring books. Company B makes crayons and markers. c. Company A makes tomato sauce sold to consumers in grocery stores and to restaurants. Company B sells tomato sauce to consumers in grocery stores. d. Company A sells property insurance in Ohio. Company B sells property insurance in California.

Company A makes tomato sauce sold to consumers in grocery stores and to restaurants. Company B sells tomato sauce to consumers in grocery stores

A fast-food chain, Bob's Bigger Burgers, has just launched a campaign to market its new pound-and-a-half burger against its competitor, Lou's Burgers, who previously sold the biggest burger at a pound and a quarter. Bob's Bigger Burgers' strategic move against Lou's Burgers is a: a. competitive response. b. strategic response. c. tactical response. d. competitive action.

Competitive Action

Awareness, motivation, and ability are drivers of: a. competitive behavior. b. a competitor analysis. c. competitive rivalry. d. competitive dynamics.

Competitive Behavior

By introducing Google Pay in response to Apple Pay, Google hopes to build and defend its competitive advantages and improve its market position through: a. competitive rivalry. b. competitive dynamics. c. competitive behavior. d. a competitor analysis.

Competitive Behavior

One constant improvement among smartphones of all brands is camera quality. As soon as Samsung, Google, or Apple introduces an updated phone, the others respond with equal or better quality in their next update. These competitive moves can be encompassed as the _____ of that market. a. market commonality b. competitor analysis c. resource similarity d. competitive dynamics

Competitive Dynamics

The ongoing set of competitive actions and competitive responses that occurs among firms as they maneuver for an advantageous market position is: a. competitive behavior. b. competitive dynamics. c. competitive rivalry. d. multimarket competition.

Competitive Rivalry

Awareness affects the extent to which the firm understands the consequences of its: a. product quality. b. competitive rivalry and dynamics. c. competitive motivation and ability. d. competitive actions and responses.

Competitive actions and responses

Slow-cycle markets are markets in which the firm's: a. competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly. b. capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often rapid and inexpensive. c. competitive advantages are partially shielded from imitation and where imitation is moderately costly. d. competitive advantages are shielded from imitation, commonly for short periods of time, and where imitation is cheap.

Competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly.

Rumor has it a new restaurant is coming to town called Italia Noodles. However, the owners are waiting to compare market commonalities and resource similarities to other local Italian restaurants. Italia Noodles is conducting a: a. tactical action plan. b. competitive action. c. strategic action. d. competitor analysis.

Competitor Analysis

Firms operating in the same market, offering similar products, and targeting similar customers are: a. allies b. competitors c. multimarket competitors d. market commonality

Competitors

Car maker BAAS is known for its risky competitive behavior, including drastically changing its prices over short time spans. Based on this information, which of the following is the most likely competitor response? a. Competitors will be more likely to respond because of BAAS' risky behavior. b. Competitors will be less likely to respond because of BAAS' risky behavior. c. Competitors will be more likely to respond because of BAAS' stability in the market. d. Competitors will be less likely to respond because of BAAS' stability in the market.

Competitors will be less likely to respond because of BAAS' risky behavior

Which of the following is a reason(s) that keeps managers from selfishly diversifying the firm for higher compensation? a. Concerns for their reputation and strong managerial talent market b. Concerns for their reputation and weak managerial talent market c. Fear that the firm would lose value d. To avoid the responsibility of a more highly complex firm

Concerns for their reputation and strong managerial talent market

A strategy in which firms collaborate to achieve a shared objective is known as: a. corporate strategy. b. a strategic alliance. c. cooperative strategy. d. international strategy.

Cooperative strategy

A strategy through which a firm collaborates with one or more companies to expand its operations is called: a. corporate-level cooperative strategy. b. diversifying strategic alliance. c. synergistic strategic alliance. d. cross-border strategic alliance.

Corporate-level cooperative strategy

Based on what you know about the various cooperative strategies, which is the most costly to implement? a. Corporate-level cooperative strategy b. Business-level cooperative strategy c. Strategic alliance d. Network cooperative strategy

Corporate-level cooperative strategy

A popular TV network, QTV, wishes to gain a competitive advantage by managing several businesses from its corporate headquarters. Among its goals, QTV hopes to acquire its competitor, RTV, in the process. In this instance, QTV is using which type of strategy? a. business-level strategy b. network-level strategy c. global-level strategy d. corporate-level strategy

Corporate-level strategy

Turtlecreek owns a high-end grocery chain, a high-end outdoor gear chain, and a sporting goods chain. Its retail businesses are unrelated; however, the firm hopes to gain an advantage over its competitors by associating its perceived luxury brand with each business. By selecting and managing these various businesses, Turtlecreek is implementing a _____ strategy. a. business-level b. corporate-level c. firm-level d. small-business

Corporate-strategy

When a company in a cooperative strategy is implementing mechanisms to ensure that its partner does not use its trade secrets to benefit outside the relationship alone, a firm is practicing which cooperative strategy management practice? a. Cost maximization b. Cost minimization c. Opportunistic minimization d. Opportunity maximization

Cost minimization

Two approaches used to manage cooperative strategies are: a. cost minimization and opportunity maximization. b. cost maximization and opportunity maximization. c. cost minimization and opportunity minimization. d. cost maximization and opportunity minimization.

Cost minimization and opportunity maximization

What are economies of scope? a. Complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise b. Cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses. c. The abilities of a firm to sell its products above the existing competitive level or to reduce the costs below the competitive level of its primary and support activities d. The advantages achieved when a company produces its own inputs or owns its own source of output distribution.

Cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses

One of the biggest economic risks of international strategy that can reduce the value of a firm's assets is: a. security risk. b. currency fluctuations. c. sufficient access to electrical power. d. the potential nationalization of invested assets.

Currency fluctuations

When a firm makes continual improvements to the processes used to produce, sell, distribute, and service its products across country borders, its ability to learn how to reduce costs and increase the value of its products for its customers is enhanced. The firm is: a. increasing its market size. b. achieving strategic competitiveness. c. developing economies of scale and learning. d. gaining a local advantage.

Developing economies of scale and learning

Intangible resources are more flexible than tangible physical assets in facilitating a. diversification. b. firm operations. c. product production. d. value creation

Diversification

A firm in France that makes locally made designer loafers has decided to expand its operation to the United States to meet the "Made in America" market demand. In order to do so, the firm has decided to partner with a United States shoe manufacturer to produce the loafers. What type of strategic alliance would best fit the partnership the firm is looking for? a. Synergistic b. Diversifying c. Franchising d. Business

Diversifying

_____ generally leads to more positive outcomes in both the short and long term. a. Downsizing b. Downscoping c. A leveraged buyout d. A nonleveraged buyout

Downscoping

Based on the various long-term outcomes, which restructuring strategy is the least recommended to implement? a. Downsizing b. Leveraged buyouts c. Downscoping d. Corporate restructure

Downsizing

Tommy's Toys, once the leading children's toy retailer in the region, has seen declining profits over the past decade. The firm has decided to close all of its 38 stores and move to an online-only retailing operation. Although it will need to expand its warehouse operations by about 100 employees, it will be eliminating approximately 500 retail sales employees. What is this restructuring strategy called? a. Downscoping b. A leveraged buyout c. Downsizing d. Restructuring

Downsizing

What are the two ways an unrelated diversification strategy can create value through financial economies? a. Efficient external capital allocations and the restructuring of acquired allocations b. Efficient internal capital allocations and the restructuring of acquired assets c. Efficient external capital allocations and the restructuring of acquired assets d. Inefficient internal capital allocations and the restructuring of acquired assets

Efficient internal capital allocations and the restructuring of acquired assets

The long-term outcomes of a leveraged buyout are higher performance and higher risk. What two short-term outcomes lead to these long-term outcomes? a. Reduced labor costs and reduced debt costs b. Reduced debt costs and emphasis on strategic controls c. Emphasis on strategic controls and high debt costs d. Reduced labor costs and high debt costs

Emphasis on strategic controls and high debt costs

An appliance company is considering entering the global market. It is unsure of what steps to take and is looking for a cost-effective method to work with a company that is already in the hosting country. Based on these preferences, which of the following modes of entry should the company choose? a. Exporting b. Setting up a greenfield venture c. Entering into a strategic alliance d. Making a cross-border acquisition

Entering into a strategic alliance

Because the resources and relationships among partners is complex, most R&D strategic alliances are what type? a. Equity b. Nonequity c. Cross-border d. Joint venture

Equity

An automotive company has entered into a strategic alliance with a motor manufacturer. The automotive company is depending on the motor manufacturer's expertise and experience in developing high horsepower motors for small sports cars. The automotive company holds a 60 percent stake in the partnership, and the motor manufacturer holds 40 percent. The strategic alliance between the two firms is best described as a(n): a. cooperative strategy. b. joint venture. c. equity strategic alliance. d. nonequity strategic alliance.

Equity strategic alliance

A stable alliance network is formed primarily to do what? a. Explore new ideas that may lead to product innovation b. Allow partners to develop new markets c. Exploit economies of scale and/or scope that exist between the partners. d. Enable partners to gain entry into new markets

Exploit economies of scale and/or scope that exist between the partners

The complexities of cooperative strategies increase the challenge of effectively implementing them and may contribute to alliance: a. success. b. failure. c. partnerships. d. extensions.

Failure

Apple quickly launches its next wave of innovative iPhones in order to keep up with competitors, such as Samsung and Microsoft. Imitation is rapid and inexpensive in the smartphone industry. Apple is a part of a _____ market. a. standard-cycle b. slow-cycle c. medium-cycle d. fast-cycle

Fast-cycle

Germany is known for its excellent technical training system, which has a strong emphasis on continuous product and process improvements. If Germany did not have such a system, it would lack which of the following determinants of national advantage? a. Firm strategy, structure, and rivalry b. Demand conditions c. Related and supporting industries d. Nature and size of domestic market

Firm strategy, structure, and rivalry

What are the advantages of choosing a vertical complementary strategic alliance versus a horizontal complementary strategic alliance? a. Firms can partner to share resources for separate parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain. b. Firms can partner to share resources for the same parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain. c. Firms can prevent their partners from having access to their most valuable resources, which helps the firms prevent opportunistic behavior by their partners. d. A firm can give its partner access to its most valuable resources, which enables both partners to maximize its success.

Firms can partner to share resources for separate parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain

Which of the following is a positive effect of downscoping? a. Firms have fewer employees that they have to compensate. b. Managerial effectiveness decreases. c. Firms spend less in operations costs. d. Firms refocus on their core business.

Firms refocus on their core business

If firms did not participate in cross-border strategic alliances, what might happen for firms expanding internationally? a. Firms would be more successful in entering foreign markets because they would be minimally influenced by other firms. b. Firms would be more successful in their domestic markets because they would not be as concerned with establishing themselves in a foreign market. c. There would be no measurable impact if firms did not implement cross-border strategic alliances. d. Firms would struggle to implement international strategies without the ability to use the resources and expertise of local firms in the foreign markets they were trying to enter.

Firms would struggle to implement international strategies without the ability to use the resources and expertise of local firms in the foreign markets they were trying to enter

Which of the following statements about standard-cycle markets is true? a. firms often obtain patents to protect, maintain, and extend a competitive advantage. b. there is a high velocity of change. c. firms' competitive advantages are partially sustainable. d. customer loyalty is less important.

Firms' competitive advantages are partially sustainable

Which of the following may result if Bella's Eatery does not conduct a competitor analysis? a. Creation of a competitive advantage b. Discovery of market commonality c. Formation of competitive blind spots d. Discovery of resource similarity

Formation of competitive blind spots

A firm can cope with differences in governmental policies and practices in the host country in which it has implemented an international strategy by: a. forming a strategic alliance. b. setting up a wholly owned subsidiary. c. setting up in a host country where governmental policies and practices are similar to the firm's home market. d. establishing clear lines of communication between the firm and the host country's government.

Forming a strategic alliance

All of the following are incentives for pursuing an international strategy EXCEPT: a. extending a product's life cycle. b. gaining easier access to raw materials. c. gaining access to consumers in emerging markets. d. gaining a bigger share of the national market.

Gaining a bigger share of the national market

How can firms implementing an international strategy become limited by diversification? a. Too many consumer cultures start to mirror one another as customers mold themselves to demand the same thing as a result of international diversification of the same products. b. Eventually, too many firms implement an international diversification strategy for similar products, making the market too saturated for any firm to be successful. c. Greater geographic dispersion across country borders results in increased costs of coordination between units and distribution of products. d. As a firm becomes more geographically dispersed, it loses its ability to keep track of its operations in terms of organization and costs.

Greater geographic dispersion across country borders results in increased costs of coordination between units and distribution of products

A publishing company publishes books, magazines, and scholarly journals. It is making far more money from its magazines and journals, so the firm has decided to downscope its book business, which will enable it to focus exclusively on new developments and growth in magazines and journals. What is the long-term outcome of the firm's decision? a. Lower performance b. Higher performance c. Reduced workforce d. Higher risk

Higher performance

The short-term outcomes of downscoping include reduced debt costs and an emphasis on strategic controls. What is the long-term outcome that results from the short-term outcomes? a. Higher risk b. Higher performance c. Lower performance d. Loss of human capital

Higher performance

Which of the following is NOT a managerial function for top-level executives during the acquisition process? a. Searching for viable acquisition candidates b. Identifying and pursuing other opportunities with external stakeholders c. Preparing for negotiations d. Managing the integration process after the acquisition

Identifying and pursuing other opportunities with external stakeholders

Risks associated with cooperative strategies include a partner's failure to present its resources to the other, as well as one firm acting opportunistically towards the other with the use of the partner's resources. How can these two risks be a result of each other? a. If a firm acts fairly towards its partner, the partner might misrepresent its resources in order to keep the firm from gaining any more access. b. If one firm feels that the other will act opportunistically, it might withhold its promised resources to keep the partner from gaining access to proprietary information. c. If one firm presents its resources first, the other will not present its resources to compete against the partner. d. When one firm doesn't present its resources, it is likely that it is going to try to act opportunistically towards its partner.

If one firm feels that the other will act opportunistically, it might withhold its promised resources to keep the partner from gaining access to proprietary information

Which of the following is an advantage of being part of a slow-cycle market as opposed to a fast-cycle market? a. In slow-cycle markets, firms must innovate rapidly in order to stay competitive. b. In slow-cycle markets, firms can shield themselves from imitation. c. In slow-cycle markets, firms can innovate at a slower pace, although it's often expensive. d. In slow-cycle markets, firms can innovate at a faster pace, and it's often inexpensive.

In slow-cycle markets, firms can shield themselves from imitation

A large software company is in the process of acquiring a small tech startup that has built an app for developers to code websites on their smartphones. It is rumored that the software company has grossly overestimated the future growth as a result of the acquisition. If this turns out to be true, what common acquisition problem has the software company encountered? a. Integration difficulties b. Inability to achieve synergy c. Too much diversification d. Inadequate evaluation of target

Inadequate evaluation of target

The main objective of the collaborating firms in a cooperative strategy is to: a. increase competitive advantage. b. neutralize each other's competitive advantage. c. decrease the other's competitive advantage. d. decrease both partners' competitive advantage.

Increase competitive advantage

Typically, a diversification strategy is used to _____ the firm's value by _____ its overall performance. a. increase; improving b. maintain; improving c. decrease; improving d. increase; decreasing

Increase; improving

Which of the following would be a motive for top-level executives to diversify their firm beyond value-creating and value-neutral levels? a. Decreased compensation and reduction of managerial risk b. Pursuit of a managerial challenge c. Interest in a promotion to a board position d. Increased compensation and reduced managerial risk

Increased compensation and reduced managerial risk

When a firm buys a competitor, supplier, distributor, or business in a highly related industry so a core competency can be used to gain competitive advantage, this demonstrates an acquisition strategy to gain: a. decreased market power. b. resources. c. higher profitability. d. increased market power.

Increased market power

A U.S.-based auto manufacturer is founded to focus on environmentally friendly smart cars. As it expands, it sets its sights on operating in France, where the population highly values compact "green" cars. By implementing an international strategy in France, the company will hope to gain: a. increased market size. b. increased economies of scale and learning. c. development of a competitive advantage through location. d. decreased market size.

Increased market size

What are the three basic benefits that firms can enjoy by successfully using international strategies? a. Increased market size, increased economies of scale and learning, and development of a competitive advantage through location b. Decreased market size, decreased economies of scale and learning, and development of a competitive disadvantage through location c. Increased market size, decreased economies of scale and learning, and development of a competitive advantage through location d. Decreased market size, increased economies of scale and learning, and development of a competitive disadvantage through location

Increased market size, increased economies of scale and learning, and development of a competitive advantage through location

A semiconductor company has established a plant overseas in South Africa, where the power grid is somewhat unreliable. Which of the following economic risks is most relevant to the circumstances of the semiconductor company? a. Infrastructure b. Potential naturalization of private assets c. Lack of natural resources d. Security risk

Infrastructure

When a firm uses a franchise as a form of corporate-level strategy, the franchisee gains the license of the franchisor's trademark and method of doing business through a(n): a. one-time royalty fee. b. ongoing franchise royalty rate. c. initial franchise fee and ongoing royalty rate. d. initial franchise fee.

Initial franchise fee and ongoing royalty rate

A secondhand computer retailer is often mistaken for an IT-help business. As a result, tech-savvy employees of the retailer are often fixing the customers' computer issues when they come into the store. The firm that owns the secondhand computer retailer has decided to diversify and open computer repair shops selling IT services. The retailer is diversifying on the basis of employee knowledge, which is considered a(n) _____ resource. a. tangible b. intangible c. nonsubstitutable d. rare

Intangible

What type of financial economy is undertaken to reduce risk among a firm's businesses? a. Internal capital market allocation b. Restructuring of assets c. Vertical integration d. Economies of scop

Internal capital market allocation

A strategy through which the firm sells its goods or services outside its domestic market is called a(n) _____ strategy. a. local b. international c. national d. domestic

International

Environmental trends, such as liability of foreignness, can impact a firm's choice of _____ strategy. a. international corporate-level b. national c. domestic d. business-level

International corporate-level

A company is looking to diversify as a way to reduce risk and protect against uncertain future cash flow from its core business. These efforts would most likely have which of the following impacts on the firm's value? a. It would create new value. b. It would increase the firm's value. c. It would be value-neutral. d. It would decrease the firm's value.

It would be value-neutral

If IKEA chose to implement a multidomestic strategy in which it practiced global efficiency and local responsiveness instead of its current successful global strategy, which of the following would be the most likely outcome? a. It would sacrifice the efficiency of centralized operations and distribution, which could affect its cost position, potentially driving up costs and prices. b. It would need less time to open stores in other countries based on speedy research of prime locations. c. Its products would stay the same, with the quirky Swedish selection IKEA currently offers. d. Its products would be even harder for customers to build themselves upon purchase.

It would sacrifice the efficiency of centralized operations and distribution, which could affect its cost position, potentially driving up costs and prices

A firm seeks to implement an international strategy in a location with which it is unfamiliar. The firm is unaware of the economics and cultural preferences of the location. The firm is influenced by which of the following environmental trends? a. Insensitivity to foreign culture b. Liability of foreignness c. Regionalization d. Localization

Liability of foreignness

A company is looking to expand internationally in the least costly way as possible. Which entry mode should it choose? a. Licensing b. Exporting c. A greenfield venture d. A cross-border acquisition

Licensing

External investors allocate capital by taking stakes in businesses with high growth and profitability potential. Which of the following is a disadvantage for external investors? a. Limited access to information b. Cannot estimate the performance of individual businesses c. Unlimited access to information d. Can understand the operational dynamics in large organizations

Limited access to information

A common reason firms enter into cross-border strategic alliances is: a. complete control over their foreign operations. b. limited domestic growth opportunities and foreign government economic policies. c. abundance of domestic growth opportunities and foreign government economic policies. d. help from domestic partners from an operational perspective.

Limited domestic growth opportunities and foreign government economic policies

A large car manufacturer has cut all but two of the employees in its marketing department to save money and return to profitability. What is the likely long-term outcome of this move? a. Loss of human capital and lower performance b. Loss of human capital and higher risk c. Higher performance and higher risk d. Lower performance and higher risk

Loss of human capital and lower performance

A single-business diversification strategy and a dominant-business diversification strategy are both examples of what level of diversification? a. moderate to high level b. very high level c. low-level d. very low-level

Low level

Which of the following characteristics can be used to describe licensing as an entry mode? a. Low risk b. Shared costs c. Maximum control d. Time consuming

Low risk

Which of the following is the result of a merged firm that maintains a low to moderate debt position? a. Lower financing cost b. Higher risk c. Inevitable trade-offs that are associated with high debt d. Maintenance of long-term competitive advantage in markets

Lower financing cost

A firm owns a wide variety of consumer goods businesses. Its portfolio includes a grocery store, shoe store, and gas station. How might the diversification of its businesses impact its ability to have successful acquisitions? a. Managers are unequipped to evaluate the success of businesses on a deeper level than finances. b. Managers are too focused on new acquisitions to maintain the success of the firm's current businesses. c. The firm is used to service-based businesses. d. Managers have been successful at juggling several different businesses.

Managers are unequipped to evaluate the success of businesses on a deeper level than finances

Sandra is developing a competitor analysis for two florists. Which of the following information in the analysis will be the basis for predicting the competitors' behavior in the form of their competitive actions and responses? a. Threats b. Capabilities c. Market commonality d. Weaknesses

Market Commonality

The number of markets with which a firm and a competitor are jointly involved and the degree of importance of the individual markets to each is referred to as: a. market commonality. b. market analysis. c. resource similarity. d. market differentiation.

Market Commonality

FreeForAll is an online retailer for graphic T-shirts and hats. Previously, it was the only mass retailer for such goods. Hatz, an in-store retailer that sells predominantly baseball hats, has just launched an e-commerce site that also features T-shirts for sale. FreeForAll has decided to respond quickly to Hatz's competitive action. This decision is based on FreeForAll's: a. market dependence. b. competitive dynamics. c. reputation. d. market independence.

Market Dependence

Apple has been known to sell its products at higher rates than competitors, such as Microsoft, as it has been successful at convincing consumers that Apple products are special and more luxurious in comparison. By accomplishing this, Apple has gained: a. multipoint competition. b. market power. c. corporate-level core competencies. d. brand awareness.

Market power

Two specialty craft stores have just been bought by craft giant Ultimate Crafts. By rebranding the small stores, Ultimate Crafts' executives hope to gain strategic competitiveness in what way? a. Diversification b. Market power c. Developing new capabilities d. Decreasing debt

Market power

Which of the following statements does NOT describe a challenge associated with the integration process of an acquisition? a. Meld two or more similar businesses' cultures b. Link different financial and control systems c. Build effective working relationships d. Determine the leadership structure and those who fill it for the integrated firm

Meld two or more similar businesses' cultures

Disney bought Pixar in 2004 to extend and begin a new partnership in its renewed focus on animation. In the deal, Steve Jobs, the CEO of Pixar at the time, vowed to preserve the independent nature of Pixar. Since then, the two have put out hits such as the Toy Story, The Incredibles, and Nemo franchises. This partnership is an example of a(n): a. merger. b. acquisition. c. joint venture. d. strategic alliance.

Merger

In which of the following international strategies are strategic and operating decisions decentralized to the strategic business units in individual countries or regions in order to allow each unit the opportunity to tailor its products to the local market? a. International business-level strategy b. Transnational strategy c. Multidomestic strategy d. Global strategy

Multidomestic strategy

SmallTown BigWorld, Inc. created a sports game that is customized for many different locations. The company has expanded its local markets in many locations in several countries. Although the company is doing well, it has several problems. Because each location does so much on its own, the corporation doesn't share knowledge internally because of the differences across markets, decentralization, and the different international business-level strategies employed by local units. It has not been able to develop economies of scale. Which of the following strategies is the company using? a. Transnational strategy b. Multidomestic strategy c. Global strategy d. International strategy

Multidomestic strategy

As soon as United Parcel Service (UPS) moved into overnight delivery, FedEx's strong point, FedEx bought trucking and ground shipping assets to gain advantage over UPS's strong point. These activities between UPS and FedEx are referred to as: a. market power. b. economies of scope. c. vertical integration. d. multipoint competition.

Multipoint competition

In what type of strategy do several firms form multiple partnerships in order to reach their shared objectives? a. Complementary strategic alliance b. Cross-border strategic alliance c. Network cooperative strategy d. Uncertainty reducing strategy

Network cooperative strategy

Sports Inc. has developed a shoe to compete with Air Jordans. In order to keep up with competitors and minimize competitor market power, the firm decides to sell branded sports equipment as well. By introducing another new business so soon outside of its shoe products, the firm stands to lose value. Sports Inc.'s reason for diversifying itself is to _____ by acquiring a _____. a. neutralize another firm's advantage; similar distribution outlet b. decrease another firm's advantage; similar distribution outlet c. increase its value; similar distribution outlet as a competitor d. decrease another firm's value; different distribution outlet

Neutralize another firm's advantage; similar distribution outlet

A convenience store chain recently implemented an international diversification strategy by opening stores in Canada, Australia, and several South American countries. As a U.S.-based company, the chain is still actively learning how to manage its new geographical diversification. Six months in, the firm has seen a drop in its return on investment. Should executives be concerned for the firm's future? a. Yes, the firm should see a quick increase in return on investment since there are more stores for profits to be made from. b. No, typically when a firm implements an international diversification strategy, its return on investment decreases initially and then increases quickly as the firm learns how to manage the increased geographical diversification it has created. c. No, the firm should see its return on investment drop and then increase gradually to match its return on investment before implementing an international diversification strategy. d. Yes, the firm should have kept its previous rate of return on investment before implementing an international diversification strategy.

No, typically when a firm implements an international diversification strategy, its return on investment decreases initially and then increases quickly as the firm learns how to manage the increased geographical diversification it has created

A car manufacturer and its partner in a cooperative strategic alliance have very minimal contract terms. Both firms are hoping to learn from each other to develop new, value-creating, innovative products. By implementing very few contractual terms in their alliance, the two firms are managing their cooperative strategy using which approach? a. Cost maximization b. Cost minimization c. Opportunity maximization d. Opportunity minimization

Opportunity maximization

How is an opportunity maximization approach a more effective alternative to the cost minimization approach of managing cooperative strategy? a. Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success. b. Opportunity maximization enables firms to decrease their cost structure, which leads to an increased likelihood of success. c. Opportunity maximization leads to more definite contractual obligations for each partner, which leads to an increased likelihood of success. d. Opportunity maximization allows firms to take advantage of each other's resources without limitations imposed by one another.

Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success

In order to remain relevant, firms must explore opportunities to maintain or increase their competitive advantage at all times. In doing so, some opportunities may be out of reach of the firm's normal capabilities. By entering into strategic alliances, how can a firm achieve competitive advantage? a. Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage. b. Both firms can achieve competitive advantage over one another, even if they are operating in the same product market, by using each other's most valuable resources. c. Both firms can behave opportunistically towards one another to keep the other from gaining competitive advantage. d. One firm can gain competitive advantage by taking advantage of its partner's resources and giving its partner less valuable resources.

Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage

The probability of disruption of the operations of multinational enterprises by political forces or events whether they occur in host countries, home country, or result from changes in the international environment describes which of the following risks associated with international strategy? a. Economic risk b. Reputational risk c. Political risk d. Financial risk

Political risk

A clothing manufacturer that sells wholesale to small fashion boutiques has just expanded its operations internationally to South Korea. In that country, labor costs and various materials are cheaper. If South Korea contemplates closing its border to importing and exporting because of an international military conflict, the clothing manufacturer would suffer as a result of which of the following environmental risks to its international strategy? a. Economic risks b. International risks c. Political risks d. Cultural risks

Political risks

Your company, which transports medical equipment to emerging nations, is conducting a political risk analysis before signing a contract to transport equipment within a South American country. Which of the following findings in the political risk analysis would indicate that the company should NOT sign the contract? a. Potential nationalization of invested assets b. Devaluation of the country's currency c. Uncertain prices for critical commodities d. High government debt

Potential nationalization of invested assets

Firms use corporate-level strategies for several reasons, including to: a. decrease revenues and profits. b. pursue development of a market. c. sell a supplier or customer. d. segment themselves into limited markets.

Pursue development of a market

Fast-cycle markets are markets in which the firms' capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often _____ and _____. a. slow; inexpensive b. rapid; inexpensive c. rapid; expensive d. slow; expensive

Rapid; inexpensive

A popular juniors clothing store features young designers and has been very successful. To gain strategic competitiveness, the clothing store frequently acquires young social-media sensations' designs and brings their designs to life in the store. What type of acquisition is the store using to increase its strategic competitiveness? a. Unrelated acquisition b. Related acquisition c. Cross-border acquisition d. Vertical acquisition

Related acquisition

The four determinants of national advantage are factors of production; demand conditions; firm strategy, structure, and rivalry; and: a. nature and size of domestic market. b. related and supporting industries. c. factors of distribution. d. unrelated industries.

Related and supporting industries

Glow Makeup is a moderately-diversified firm, as it has three main related businesses, including a skin care business, nail polish business, and facial cosmetic business. Its divisions are composed of different products, but they are all related to cosmetics. As a result, the firm maintains many of the same resources and certain activities within each of its operations. Based on this information, Glow Makeup uses a(n) _____ diversification strategy. a. unrelated b. related linked c. related constrained d. dominant-business

Related constrained

Which of the following types of diversification strategies is characterized by less than 70 percent of revenue coming from the dominant business and limited links between businesses? a. dominant-business b. related constrained c. related linked d. unrelated

Related linked

Which of the following characteristics best describes tactical actions? a. Relatively easy to implement and reverse b. Involve significant resources c. Difficult to implement and reverse d. Fully counter the effects of a competitor's actions

Relatively easy to implement and reverse

FedEx and United Parcel Service (UPS) compete in many of the same markets and have similar types of truck and airplane fleets, similar levels of financial capital, and other similarities. These tangible and intangible resources between the two firms describe the: a. resource differentiation. b. resource similarity. c. market similarity. d. market differentiation.

Resource Similarity

The strategy through which a firm changes its set of businesses or its financial structure is called: a. downsizing. b. restructuring. c. an acquisition. d. a merger.

Restructuring

A firm that responds to the first mover's competitive action, typically through imitation, is called a: a. slow-cycle mover. b. late mover. c. second mover. d. last mover.

Second mover

A pharmaceutical company has a patented antidepressant that has few side effects and dominates the market. The company has been conducting research and development (R&D) to improve this drug for several years. The pharmaceutical company would be categorized as part of a _____ market. a. fast-cycle b. slow-cycle c. standard-cycle d. no-cycle

Slow-cycle

An international diversification strategy creates the potential for firms to do all of the following EXCEPT: a. sustain a competitive advantage without the need to continually upgrade it. b. generate the resources required to sustain a large-scale research and development (R&D) operation. c. achieve greater return on their innovations. d. reduce the often-substantial risks of R&D investments.

Sustain a competitive advantage without the need to continually upgrade it

Which of the following is a market-based move that firms take to fine-tune a strategy? a. Competitive action b. Strategic response c. Strategic action d. Tactical action

Tactical Action

When a target firm does not solicit an acquiring firm's bid, it is known as a(n): a. acquisition. b. merger. c. takeover. d. cross-border acquisition.

Takeover

Two American appliance firms have equal share of the market. U.S. Elite, one of the firms, has decided to implement an international strategy in China. The firm is looking to grow manufacturing and start selling internationally while increasing its competitive advantage in the process. Why is a cross-border strategic alliance the most effective option for U.S. Elite? a. The alliance enables U.S. Elite to share resources for manufacturing and knowledge about the Chinese market. b. The alliance keeps U.S. Elite from sharing resources with Chinese manufacturers to help them with manufacturing. c. The alliance gives U.S. Elite minimal responsibility for its foreign operations in China. d. The alliance gives the Chinese manufacturer sole control of U.S. Elite operations.

The alliance enables U.S. Elite to share resources for manufacturing and knowledge about the Chinese market

When a firm takes over another firm in an unfriendly acquisition process, what is a challenge to its future success? a. The firm will have a high probability of synergy and competitive advantage by maintaining strengths. b. The firm will struggle to maintain long-term competitive advantage in markets. c. The firm will struggle to effectively integrate its operations. d. Financing will be harder to obtain.

The firm will struggle to effectively integrate its operations

Which of the following is NOT a reason for a firm to respond to a competitor's action? a. The action leads to better use of the competitor's capabilities to develop a stronger competitive advantage or an improvement in its market position. b. The action damages the firm's ability to use its core competencies to create or maintain an advantage. c. The firms have resource dissimilarity. d. The firm's market position becomes harder to defend.

The firms have resource dissimilarity

A top-level executive of a tire manufacturer is considering diversifying and expanding operations into China, where labor and materials are cheaper. The firm has already diversified itself to double its original number of locations. All of its newest locations have been implemented by the same executive. So far, the return on investment for each of the newer locations is negative. Why might the executive want to open yet another location? a. The larger the firm gets, the less compensation the executive will receive because no value has been created. b. The larger the firm gets, the more compensation the executive will receive, even if no value has been created yet. c. The executive is worried about creating jobs, even if there is no value created for the manufacturer. d. The executive predicts that the return on investments will provide positive returns soon.

The larger the firm gets, the more compensation the executive will receive, even if no value has been created yet

Spark is the only energy company in the fictional country of Blacksburgia and therefore holds a monopoly in its home country. Spark's lack of competition in its home country can contribute to an international strategy in which of the following way? a. Access to raw materials is not a problem in the home country. b. The company has perfected its consumer relationship. c. Other countries may have companies offering similar products. d. The resources gained at home can be invested in international markets.

The resources gained at home can be invested in international markets

A small software firm has formed a cooperative strategic alliance with a startup company to develop the startup's product, an app for smartphones. The startup promised to connect the software firm with other startup companies looking for software services. So far, the startup has not followed through, while the software firm has neared completion of its portion of the app development. Based on this scenario, which risk has manifested in the alliance between the software firm and the startup company? a. The software firm has misrepresented its resources to the startup. b. The startup has failed to make its resources available to the software firm. c. The software firm has failed to make its resources available to the startup. d. The startup is acting opportunistically towards the software firm.

The startup has failed to make its resources available to the software firm

Ronson Foods, a corporation that operates more than 400 large supermarkets in 12 states in the northeastern United States, is considering acquiring East Coast Organics, a small chain of 26 specialty food stores known for their friendly atmosphere and humorous advertising. While many see the potential in this acquisition, some analysts worry about the integration process following the acquisition. What is a difference between the two that might cause difficult integration? a. East Coast Organics has a smaller share of the market. b. Both firms are experiencing financial instability. c. Ronson Foods and East Coast Organics have been competing in the same domestic market. d. There may be cultural differences in operations between the two firms.

There may be cultural differences in operations between the two firms

DOS, a leader in the computer industry, implemented a new strategic action to offer a video streaming service to consumers. The move has proven to be successful. How are competitors likely to respond? a. They are likely to imitate the action quickly. b. They are likely to imitate the action, but only after a significant amount of time. c. They are likely to imitate the action only if other competitors take the same action. d. They are not likely to imitate the action at all.

They are likely to imitate the action quickly

Which of the following is a reason why firms with a low level of diversification are often able to earn positive returns? a. They develop capabilities that are useful across many markets. b. They can transfer knowledge across businesses. c. They are able to constantly adjust the mix in their portfolio to increase profits. d. They can provide superior customer service.

They can provide superior customer service

Why would firms choose to use complementary strategic alliances? a. To reduce competition b. To launch competitive responses to their competitor's actions c. To expand operations d. To focus on long-term product development and distribution opportunities

To focus on long-term product development and distribution opportunities

As web development continues to grow as a career field, more and more education options are being created for interested mid-career professionals. A software firm that has developed online courses for people to learn web development has decided to partner with a popular computer manufacturer to build a laptop with a special keyboard and interface elements for web development education. The idea came after a competitor implemented a similar strategy to develop a smartphone interface compatible with educational software. Which of the following is a motive for the education and computer firms to implement a cooperative strategy? a. To minimize their rivals' returns b. To gain a higher a price point than their rivals c. To outperform rivals with a similar idea d. To neutralize competition with rivals

To outperform rivals with a similar idea

Why would a firm in a standard-cycle market want to pursue a strategic alliance? a. To gain access to a restricted market b. To speed up new market entry c. To share risky R&D expenses d. To overcome trade barriers

To overcome trade barriers

An American sandal company has completely saturated its local market. The sandals, which are made of specially molded rubber soles that minimize soreness associated with unsupportive soles, have started to build a demand in Australia, a market the company is unfamiliar operating in. Why might the sandal company enter into a cooperative strategy with an Australian firm? a. To explore export options from the United States to Australia b. To give responsibility of the company's expansion to the Australian firm c. To share unique resources to design, produce, and launch the product in Australia d. To take advantage of the Australian company in a hostile takeover

To share unique resources to design, produce, and launch the product in Australia

A large car manufacturer has acquired its tire supplier through a vertical acquisition. Unfortunately, instead of realizing economies of scale by adding to its value chain, the manufacturer has had a very small return on its investment. The firm is struggling to prioritize its efforts between manufacturing and acting as a tire supplier for outside businesses. With so much production power and so little use of it, the manufacturer's operations have become ineffective. What common problem of acquisitions has the manufacturer encountered? a. Inability to achieve synergy b. Too much diversification c. Too large d. Inadequate evaluation of target

Too large

Which of the following is an example of a problem that can prevent an acquisition from being successful? a. Ability to achieve synergy b. Little to no debt c. Adequate evaluation of target d. Too much diversification

Too much diversification

A firm owns several businesses, including a personal loan office and a furniture store. Another standalone personal loan office is suffering financially because of the allocation of its assets. The furniture business decides to buy the standalone personal loan business, restructure its assets, and then sell it as operations resume more successfully. This is an example of: a. unrelated diversification. b. value-neutral diversification. c. value-creating related diversification. d. vertical integration.

Unrelated diversification

Upon reaching saturation level in the U.S. market, a fitness firm with an activity tracker decides to expand its service internationally, where its technology is superior. This illustrates which of the following incentives for implementing an international strategy? a. Searching for needed resources to help improve these technological capabilities b. Using rapidly developing technologies in other countries c. Competing with similar services in other countries d. Gaining classification as an international company

Using rapidly developing technologies in other countries

The need to create _____ for stakeholders is a primary influence on a firm's decisions to engage in merger and acquisition activity. a. growth b. value c. profitability d. shares

Value

What is the distinction between value-neutral reasons and value-creating reasons for a firm to diversify? a. Value-neutral reasons seek to help the firm establish a more competitive position, whereas value-creating reasons seek to serve the managers of the firm. b. Value-neutral reasons seek to serve the managers of the firm, whereas value-creating reasons seek to help the firm establish a more competitive position. c. Value-neutral reasons seek to improve the firm overall, whereas value-creating reasons seek to help the firm establish a more competitive position. d. Value-neutral reasons seek to help the firm establish a more competitive position, whereas value-creating reasons seek to improve the firm overall

Value-neutral reasons seek to help the firm establish a more competitive position, whereas value-creating reasons seek to improve the firm overall

A tech startup is exploring ways to develop an app that allows patients to visit their doctors virtually. The startup is partnering with a local practice to compile data, including symptoms, common ailments, and clinical expertise, to be accessible through the interface of the app. The company anticipates the project will take two to three years. What type of business-level strategy best fits this partnership? a. Competition-reducing strategy b. Vertical complementary strategic alliance c. Uncertainty-reducing strategy d. Competition response strategy

Vertical complementary strategic alliance

Steeler Manufacturing uses an unrelated diversification strategy throughout its operations. For instance, Steeler has five core businesses, all of which are unrelated. Each of its businesses is large and indicates Steeler's success in implementing an unrelated diversification as a _____ firm. a. low diversified b. very highly diversified c. moderately to highly diversified d. nondiversified

Very highly diversified

Corporate-level strategy is concerned with which of the following key issues? a. What product markets the firm can compete in as a standalone business b. What businesses the firm should plan to acquire to increase its competitive advantage c. What product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses d. What product markets and businesses the firm should compete in and how the firm should manage itself

What product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses

What does it mean when an acquisition is unable to achieve synergy? a. When a firm finds itself in extraordinary debt as the result of acquiring another firm b. When the acquiring firm and acquired firm do not effectively share resources, economies of scale, and economies of scope across the businesses c. When a firm has too many business units and no clear method of measuring their performance d. When a firm becomes so large it does not have the economics necessary to manage the complexity of the organization made by the acquisition

When the acquiring firm and acquired firm do not effectively share resources, economies of scale, and economies of scope across the businesses