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15 Cards in this Set
- Front
- Back
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Common core competencies are the unique resources and knowledge that a company's management must consider when developing strategy.
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T(True)
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Corporate-level strategy must maintain strategic coherence across business units to create value for shareholders.
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T
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Synergy is the condition in which the combined benefits of multiple activities are greater than the simple sum of those benefits.
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T
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The economic logic of diversification incorporates levers to achieve synergy and transfer knowledge between business units.
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T
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Moving "upstream" in an industry value chain will draw firms closer to the source of needed raw materials.
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T
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A conglomerate is a corporation consisting of many companies in different businesses or industries.
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T
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Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool.
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T
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Substantial empirical evidence indicates that some forms of diversification can create significant shareholder wealth.
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T
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Expanding a firm's scope does not necessarily create value for shareholders.
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T
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The ability to join the procurement function across more than one business unit and buy materials jointly creates an economy of scope.
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T
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Firms often acquire and merge with firms in adjacent sectors in order to bundle related products and cross sell to existing customers.
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T
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Transferring capabilities is a special case of resource sharing that can create cost savings and revenue enhancement.
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T
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The strategy of common ownership can dissipate potential shareholder value.
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T
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A firm becomes a prime candidate for takeover when investors suspect the prospect of a significant diversification discount.
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T
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Relatedness is assessed by how similar the underlying industries are.
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T
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