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37 Cards in this Set
- Front
- Back
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Which of the following is NOT a value adding activity of the corporate parent?
Providing clarity and focus in envisioning the overall role and expectations of the organisation Buffering managers from the realities of the financial markets by providing a financial safety net Providing expertise and services not available within smaller units Actively seeking to challenge and develop the strategic ambitions of the business units Investment, especially in the early days of new ventures |
Buffering managers from the realities of the financial markets by providing a financial safety net
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Which of the following is a circumstance in which a conglomerate strategy may be effective?
In developed markets In developing markets In the energy industry In commodities |
In developing markets
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Which of the following is NOT a value-creating reason for diversification?
Efficiency gains from applying existing resources and competences to new markets and products/services Gains from applying corporate managerial capabilities to new markets and products/services A diverse range of products/services can increase market power A diverse range of products/services can diffuse management effort Need to respond to environmental change |
A diverse range of products/services can diffuse management effort
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Which of the following terms in the Ansoff matrix is used for focusing on existing products in existing markets?
Market penetration Product development Market development Diversification |
Market penetration
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What is the primary aim of market penetration?
To gain market share. To develop new products. To fight off competitor retaliation. To defend market share. |
To gain market share.
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What term is used to describe a business unit which has high market growth but low market share?
Star Question mark Cash cow Dog |
Question mark
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What benefits are likely to result if an organisation increases its market penetration and achieves greater market share?
Increased power in relation to buyers Increased power in relation to suppliers Greater economies of scale Experience curve benefits All of the above |
All of the above
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Which of the following is generally most successful, according to research findings?
Related diversifiers Unrelated diversifiers Specialists There is no discernable difference |
Related diversifiers
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Corporate parenting seeks to analyse:
Relationships between head office and subsidiaries Value adding and value destroying activities of corporate parents Employee relations Corporate strategy |
Value adding and value destroying activities of corporate parents
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What term is used for a situation where a company has diversified beyond its current products and markets, but within its existing capabilities?
Related diversification Synergy Stretched capability Market penetration |
Related diversification
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Who is primarily responsible for the development of corporate level strategy?
Supervisors Middle management team Senior management team Shareholders |
Senior management team
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Another way of describing a strategy of unrelated diversification is:
A transnational strategy A conglomerate strategy A differentiated strategy A multiple business strategy |
A conglomerate strategy
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A company has started to produce machinery for use in the production of its main product range. What type of related diversification is this?
Horizontal integration Backward integration Forward integration Unrelated integration |
Backward integration
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Which of the following is NOT one of the strategic directions identified in the Ansoff matrix?
Corporate parenting Market penetration Product development Market development Diversification |
Corporate parenting
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Which of the following is not a type of diversification?
Related Horizontal Forward Backward Downward |
Downward
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The corporate parent is:
The management of subsidiaries The Board of Directors The shareholders' representative The management level above SBUs |
The management level above SBUs
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Which of the following is not a framework for analysing the corporate portfolio?
The Ashridge portfolio display The BCG matrix The value chain The directional policy matrix |
The value chain
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Research into diversification has shown that:
Related diversification underperforms compared to specialisation and unrelated diversification. Related diversification outperforms compared to specialisation and unrelated diversification. The performance of conglomerates is consistently good over long time periods. Diversification is too risky and always fails. |
Related diversification outperforms compared to specialisation and unrelated diversification.
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What term is used to describe a business unit which has low market growth but high market share?
Star Question mark Cash cow Dog |
Cash cow
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What term is used for a situation in which a company develops into activities concerned with the inputs into the company's business?
Backward integration Forward integration Unrelated diversification Synergy |
Backward integration
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Which three of the following are most likely to be useful methods of market development?
New segments New users New geographies New products New production techniques |
New segments
New users New geographies |
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Which of the following is NOT a way in which the corporate parent can add value?
Envisioning Coaching and facilitating Providing central services and resources Adding management costs |
Adding management costs
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Which two of the following are reasons why related diversification may be problematic?
There are significant corporate-level time and cost implications. Business-unit complexity may mean that business unit managers are unable to focus on their own business-unit needs. There may be significant synergy benefits from links between the various business units. It may enable the parent to exploit dominant logics. |
There are significant corporate-level time and cost implications.
Business-unit complexity may mean that business unit managers are unable to focus on their own business-unit needs. |
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Which are the two axes of the BCG matrix?
Growth and attractiveness Long term market attractiveness and SBU strength Fit between business unit CSFs and the parent's skills resource and characteristics; fit between business unit parenting opportunities and the parent's skills, resources and characteristics Growth and market share |
Growth and market share
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An unrelated diversification strategy is often described as a conglomerate strategy. True or False?
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True
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Which of the following is NOT a way in which the corporate parent can destroy value?
Adding bureaucratic complexity Obscuring financial performance Providing central services and resources Adding management costs |
Providing central services and resources
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What term is used for a strategy that takes an organisation away from both its existing markets and its existing products?
Consolidation Product development Market development Diversification Market penetration |
Diversification
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Horizontal integration is:
Development into activities concerned with the inputs into the company's current business Development into activities concerned with the outputs from the company's current business Development into activities which are complementary to present activities Development into new geographical markets |
Development into activities which are complementary to present activities
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What are the four elements of the BCG matrix?
Stars, sun, moon and planets Stars, question marks, cash cows and dogs New products, new markets, market penetration and diversification Heartland, value trap, alien businesses, ballast businesses |
Stars, question marks, cash cows and dogs
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Which three of the following are most likely to be effective value-creating benefits from diversification?
Efficiency gains Stretching corporate parenting capabilities Increasing market power Spreading risk |
Efficiency gains
Stretching corporate parenting capabilities Increasing market power |
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Which of the following terms in the Ansoff matrix is used for developing new products for new markets?
Market penetration Product development Market development Diversification |
Diversification
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What term is used for the benefits that are gained where an organisations activities or assets complement each other so the overall effect is greater than the sum of the parts?
Synergy Corporate parenting Diversification Empathy |
Synergy
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Corporate level strategy is concerned with:
The scope of an organisation and how value is added (or destroyed) at corporate level Competitive strategy of SBUs Directions of growth e.g. Ansoff matrix Addressing threats and opportunities in the macroenvironment and leveraging strategic capability to create and sustain competitive advantage |
The scope of an organisation and how value is added (or destroyed) at corporate level
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What type of integration occurred when Google diversified into news, images and maps?
Horizontal Forward Backward Unrelated |
Horizontal
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A company has started to develop complementary products. What type of related diversification is this?
Backward integration Forward integration Horizontal integration Synergy |
Horizontal integration
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Which of the following is NOT one of the key criteria for assessing the corporate portfolio?
Balance Maturity Attractiveness Fit |
Maturity
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Which of the following are NOT key concerns of corporate level strategy?
Portfolio management Marketing planning Corporate parenting Diversification |
Marketing planning
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