Full Test Bank Corporate Strategy Henry Chapter 7

Chapter 7: Corporate Strategy

Test Bank

Type: fill-in-blank

Title: Chapter 07 Question 01

1) The corporate head office has no real _______________.

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Title: Chapter 07 Question 02

2) The concept of _______________ can be explained using the sum 2+2=5.

Type: multiple choice question

Title: Chapter 07 Question 03

3) Using Ansoff’s matrix, if a firm enters new markets using existing products it is using the growth strategy of:

a. Market penetration

b. Market development

c. Product development

d. Diversification

Type: true-false

Title: Chapter 07 Question 04

4) An organization pursuing diversification seeks to increase the market share in its existing markets by using its existing products.

a. True

b. False

Type: multiple response question

Title: Chapter 07 Question 05

5) Product developing strategy will be successful when: Please select all that apply.

Type: multiple choice question

Title: Chapter 07 Question 06

6) If there is a high degree of relatedness between a business and its corporate parent, it means:

a. The corporate parent is more likely to add value to the business.

b. The corporate parent is less likely to add value to the business.

c. The corporate parent is more likely to add synergies to the business.

d. The corporate parent is less likely to add synergies to the business.

Type: multiple choice question

Title: Chapter 07 Question 07

7) A firm acquires or merges with a competitor. This is an example of:

a. Vertical integration upstream

b. Vertical integration downstream

c. Horizontal integration

d. Complementary integration

Type: true-false

Title: Chapter 07 Question 08

8) There is sound evidence to back up the claim that related diversification is more successful than unrelated diversification.

a. True

b. False

Type: multiple response question

Title: Chapter 07 Question 09

9) Why did the Daimler-Benz Chrysler merger fail? Please select all that apply.

Type: multiple response question

Type: multiple response question

Type: fill-in-blank

Title: Chapter 07 Question 12

12) Porter suggests three criteria for deciding whether to acquire a particular business. The test which looks at whether the corporate parent can add value to the business is called the ______________ test.

Type: multiple response question

Title: Chapter 07 Question 13

13) Which of the following are advantages of organic growth? Please select all that apply.

Type: multiple response question

Type: multiple response question

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Title: Chapter 07 Question 16

16) A __________exists when two organizations form a separate independent company in which they own shares equally.

Type: multiple response question

Title: Chapter 07 Question 17

17) The benefits that each partner may gain within the strategic alliance are: Select all that apply.

Type: fill-in-blank

Title: Chapter 07 Question 18

18) A _________________ is simply the different mix of businesses that an organization possesses.

Type: true-false

Title: Chapter 07 Question 19

19) Organizations with a balanced portfolio perform better than those that do not.

a. True

b. False

Type: multiple response question

Title: Chapter 07 Question 20

20) The strategic options facing a question mark are to: Please select all that apply.

Type: fill-in-blank

Title: Chapter 07 Question 21

21) In 1990 Prahalad and Hamel argued that firms were ignoring core competences at corporate level and instead treating their portfolio of businesses as separate from each other. They use the phrase “______________________” to describe this problem.

Type: multiple response question

Title: Chapter 07 Question 22

22) What are criticisms of the BCG matrix? Please select all that apply.

Type: multiple response question

Type: multiple response question

Type: multiple choice question

Title: Chapter 07 Question 25

25) Goold et al (1994) describe four ways that a corporate parent can add value. These are; standalone influence, functional services influence, corporate development influence and:

a. Relatedness influence.

b. Synergy influence.

c. Linkage influence.

d. Portfolio influence.

Type: true-false

Title: Chapter 07 Question 26

26) Businesses are businesses which appear attractive to the corporate parent on the surface but, in reality, there exist areas of misfit with the parent.

portfolio unless the parent is capable of learning to reduce or eliminate the misfits.

a. True

b. False

Type: true-false

Title: Chapter 07 Question 27

27) In assessing a number of strategic options, the ‘suitability’ criterion is to do with the degree to which the organization has the appropriate resources at its disposal.

a. True

b. False

Type: fill-in-blank

Title: Chapter 07 Question 28

28) In assessing a number of strategic options, the three criteria of suitability, acceptability and _____________________ can be used to judge which strategy should be implemented.

Type: true-false

Title: Chapter 07 Question 29

29) When evaluating strategic options, a particular strategy should satisfy all three tests of suitability, acceptability, and feasibility.

a. True

b. False

Type: multiple response question

Title: Chapter 07 Question 30

30) Ricahrd Rumelt proposes four tests to evaluate a strategy.