Reference no: EM133389531
Questions
1. There is a limit to the level of diversification that any firm can manage successfully - diversification beyond some point leads to poorer firm performance:-
A. This statement is true only for related diversification but is not true for unrelated diversification.
B. This statement is true only for unrelated diversification but is not true for related diversification
C. This statement is true for both unrelated and related diversification.
D. This statement is false for both unrelated and related diversification.
2. The success of a strategic alliance hinges on three main factors: partner selection, alliance structure, and:-
A. avoiding be distracted by alliance partners' cultures and processes
B. focusing on market opportunities that drove the alliance and on trying to integrate lessons
C. the manner in which the alliance is managed
D. geographic proximity
3. All of the following are activities with which managers become involved in a firm's acquisition strategy except:-
A. Preparing for negotiations
B. Estimating future market price of shares
C. Searching for viable acquisition candidates
D. Managing the integration process after the acquisition is completed
E. Completing effective due diligence processes.
4. The relative informality and lower commitment levels characterizing _________________ make them unsuitable for complex projects where success requires effective transfers of tacit knowledge between partners.
A Vertical Complementary Alliances
B. Opcrating joint ventures
C. Non-cquity alliances
D. Mergers and acquisitions
5. All of the following are reasons that firms in a strategic alliance for the purpose of learning from competitors may vary in their rates of learning except
A. The firms in the alliance are of similar sizes.
B. Some things are easier to learn than others.
C. The firms may differ in their ability to learn.
D. One firm may not provide all of the necessary information, which slows the partner's rate of learning
6. Empirical evidence on acquisitions indicates_________excess returns on average to the shareholders of the selling company, and _______________ excess returns on average to those of the buying company.
A. no: no
B. substantial; no
C no: Substantial
D. substantial: substantial
7. A related diversification strategy
A. makes expansion into foreign markets more difficult than does a strategy of unrelated diversification
B. is more risky than a strategy of unrelated diversification because of the difficulty in passing the better-off test and the attractiveness test.
C. exploits economics of scale whereas an unrelated diversification strategy exploits economies of scope.
D. offers relatively more competitive advantage potential than an unrelated diversification strategy.
E. is usually based on market-related strategic fit rather than value chain fits.
8. Successful corporate strategy involves all the activities that go towards
A. Determine the right mix of businesses in its portfolio
B. Determining how to achieve competitive advantage in an industry
C Developing distinctive resource(s) or competence(s) that act(s) as a source of competitive advantage in multiole industrics
D. A, Band C
E. A and C
9. Which of the following is a benefit of using an acquisition instead of internal development to enter a new business?
A. Acquisitions are less expensive than internal development
B. Acquisitions offer more points at which a project can be assessed or re-evaluated before a full investment is made than does internal development
C. Acquisitions are less likely to develop cultural clashes than is internal development
D. Acquisitions allow firms to more quickly establish a foothold in a new business than internal development allows.
10. BMW's failure in its acquisition of Rover can be primarily attributed to
A. Rover mislead BMW as to the extent it had learned from Honda
B. The difficulty in integrating two contradictory competitive positions
C. Overpaying
D. The difficulty in integrating German culture with English culture.