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Estrategia de Nivel Corporativo: Creando Valor a través de la Diversificación
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Chapt er06 Cor por at eLev elSt r at egy :Cr eat i ngVal uet hr oughDi v er s i fic at i on True / False Questions 1. Resear chshowst hatt hev astmaj or i t yofacqui si t i onsofpubl i ccor por at i onsr esul t si nval ue cr eat i onr at hert hanval uedest r uct i on. Tr ue Fal se 2. TheHewl et t Packar dandAut onomymer geri n2011i sanexampl eofasuccessf ulmer ger . Tr ue Fal se 3. Manyacqui si t i onsul t i mat el yr esul ti ndi vest i t ur e. Tr ue Fal se 4. Att i mes,t heonl yot herpeopl ewhomayhavebenefit edf r om amer ger acqui si t i onwer et he shar ehol der soft heacqui r edfir msort hei nvest mentbanker sadvi si ngt heacqui r i ngfir m. Tr ue Fal se 5. Reasonsf oracqui si t i onf ai l ur ei ncl udet heeffect i v ei nt egr at i onoft heacqui si t i on. Tr ue Fal se 6. Cor por at el evelst r at egyf ocusesongai ni ngshor t t er mr evenuet hr oughmanagi ngoper at i onsi n mul t i pl ebusi nesses. Tr ue Fal se 7. Spr i ntandNext elmer gedi n2005.Thesuccessf ulmer gerr esul t edi na31bi l l i onUSDmer ger r el at edchar get hatl eadt oa76per centdecr easei ni t sv al uebyl at e2012. Tr ue Fal se 8. I nast udyof270i nt er nat i onalmer ger sbet ween2000and2003i twasf oundt hatsal esgr owt h i ncr eased,ear ni ngsgr owt hi ncr eased,andmar ketv al uat i onsi ncr easedover al lf ort hemer ged compani es. Tr ue Fal se 9. Oneoft her easonst hatt heCi scoacqui si t i onoft heFl i ppr oductf ai l edi st hatt hecor ebusi nesses wer ever ydi ffer ent . Tr ue Fal se 6-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 10.I nl ar ge,wi del ydi ver si fiedfir ms,deci si onmaki ngcanbecomesl owandr emot et omar k et condi t i onst huscr eat i ngpot ent i aldi ffic ul t i esf ors uccess f ulmer ger sasevi dencedbyt heCi scoFl i pf ai l ur e. Tr ue Fal se 11.Al ldi v er si fi cat i onmov es ,i ncl udi ngt hos ei nv ol v i ngmer ger sandacqui si t i ons,er odeper f or mance. Tr ue Fal se 12.Di v er s i ficat i oni ni t i at i v esmustbej us t i fiedbyt hecr eat i onofv al uef ors har ehol der s . Tr ue Fal se 13.Whenfir msdi v er si f yi nt ounr el at edbusi nesses,t hepr i mar ypot ent i albenefit sar ehor i z ont al r el at i ons hi ps ,i . e. ,busi ness ess har i ngt angi bl eandi nt angi bl er esour ces . Tr ue Fal se 14.Whenfir msdi v er si f yi nt or el at edbusi nesses,t hepr i mar ypot ent i albenefit scomef r om hor i z ont al r el at i ons hi ps ,whi char ebus i nessess har i ngi nt angi bl eandt angi bl er esour ces. Tr ue Fal se 15.Benefit sder i v edf r om hor i z ont alandhi er ar chi c alr el at i onshi psar emut ual l yex cl usi v e. Tr ue Fal se 16.Economi esofs copear ecos tsavi ngsf r om l ev er agi ngc or ecompet enci esors har i ngunr el at ed act i vi t i esamongbus i nessesi nacor por at i on. Tr ue Fal se 17.CooperI ndust r i eshasf ol l owedasuc cessf uls t r at egyofr el at eddi v er si fi cat i on.Ther ear ef ew s i mi l ar i t i esi nt hepr oduct si tmakesort hei ndust r i esi nwhi c hi tcompet es . Tr ue Fal se 18.ConAgr ausest her el at eddi v er si ficat i onv er t i c ali nt egr at i oni ni t i at i v et oenhancemar k etpower . Theydot hi st oi nc r easet hei rpowerov ersuppl i er sbyc ent r al l ypur chasi nghugequant i t i esof packagi ngmat er i al sf oral lofi t sf ooddi vi si ons. Tr ue Fal se 19.ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err aw mat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputt oi t smanuf act ur i ngpr ocess .Thi si san ex ampl eofusi ngt her el at eddi v er s i ficat i onv er t i cali nt egr at i oni ni t i at i v et oenhancet hei rmar k et power . Tr ue Fal se 6-2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 20.Nov ar t i s ,f or mer l yCi baGei gy ,usespor t f ol i omanagementt oi mpr ov emanyk eyact i vi t i es , i nc l udi ngr esour ceal l ocat i onandr ewar dandev al uat i ons ys t ems .Thi si sanex ampl eofus i ng unr el at eddi v er si ficat i oncor por at er est r uct ur i ngandpar ent i ngi ni t i at i v est oc r eat ev al ue. Tr ue Fal se 21.Rel at eddi v er si ficat i onenabl esafi r mt obenefitf r om hor i z ont alr el at i onshi psacr ossdi ffer ent busi nessesi nt hedi ver si fiedcor por at i onbyl ev er agi ngc or ecompet enci esands har i ngact i v i t i es. Tr ue Fal se 22.Economi esofs copei nar el at eddi v er s i ficat i onst r at egyr esul tf r om t hel ev er agi ngofc or e c ompet enci esandt hes har i ngofact i vi t i esamongbus i ness esi nt hec or por at i ons uchas pr oduct i on. Tr ue Fal se 23.Cor ecompet enci esdonotcr eat ev al uei nabusi ness. Tr ue Fal se 24.Foracor ecompet enc yt ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustatl eas tcr eat esuper i orcus t omerv al ueandi tmustbedi fficul t t oi mi t at e. Tr ue Fal se 25.Gi l l et t edev el opedt heFus i onandMac h3s havi ngs y s t emst hatcr eat eds uper i orc ust omerv al ue asar esul toft hec ompanycor ec ompet encyi nr esear c handdevel opment . Tr ue Fal se 26.Oneoft hec r i t er i af oracor ecompet encei st hatt hedi ffer entbusi nes sesi nt hec or por at i onmust besi mi l ari natl eastonei mpor t antwayr el at edt ot hec or ecompet ence. Tr ue Fal se 27.I ti snotnecess ar yf orac or ecompet encet obedi fficul tt oi mi t at eort obenonsubs t i t ut abl e. Tr ue Fal se 28.I BM l ev er agesi t scompet enci esi ncomput i ngt echnol ogyt opr ovi deheal t hcar eser vi ces .Thi si s anex ampl eofacor ec ompet encebei ngusedac r ossdi ssi mi l arbusi nes seswi t hi nt hes ame c or por at i on. Tr ue Fal se 29.Shar i ngact i v i t i esacr ossbus i nessuni t scanpr ov i det wopr i mar ybenefit s :costs avi ngsandcos t enhancement s . Tr ue Fal se 6-3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 30.St ar bucksacqui r edt hebakerchai n,LaBoul ange,wi t ht hei nt ent i onofsel l i ngt hebaker ypr oduct s ati t scoffeec af es .Thei ncr easedmar k etexposur ef orLaBoul angei sanex ampl eofar ev enue enhanci ngbenefi tt hatcanar i sef r om t hedi ffer ent i at i ons t r at egy . Tr ue Fal se 31.Wi t hunr el at eddi v er s i ficat i on,pot ent i albenefit scanbegai nedf r om v er t i calorhi er ar chi cal r el at i ons hi ps ;t hati s ,t hec r eat i onofs yner gi esf r om t hei nt er act i onoft hecor por at eofficewi t h out si des t akehol der s. Tr ue Fal se 32.Rest r uct ur i ngr equi r est hecor por at eofficet ofi ndei t herpoor l yper f or mi ngfi r mswi t hunr eal i z ed pot ent i alorfir msi ni ndust r i esont het hr eshol dofs i gni ficant ,posi t i v ec hange. Tr ue Fal se 33.Por t f ol i omanagements houl dbeconsi der edast hepr i mar ybasi sf orf or mul at i ngcor por at el ev el s t r at egi es . Tr ue Fal se 34.Por t f ol i omanagementmat r i cesgener al l ycons i stoft woax est hatr eflecti ndus t r yormar k et gr owt handt hemar k etshar eofabusi ness. Tr ue Fal se 35.Theac qui si t i onoft woormor ecount er c y cl i calbusi nes sesi sanexampl eofusi ngdi v er si ficat i on t or educer i sk. Tr ue Fal se 36.LoewsCor por at i on,acongl omer at ewi t h15bi l l i onUSDi nr ev enues ,compet esacr osss ev er al i ndust r i esi ncl udi ngoi l andgas,t obacco,wat c hes ,i nsur ance,andhot el s.I t sr el at eddi v er si ficat i on s t r at egyi st obuyl owands el lhi ghasi nt heex ampl ewher et heyboughtsi xoi lt ank er sf or5 mi l l i onUSDandt hens ol dt hem ei ghty ear sl at erf or50mi l l i onUSD. Tr ue Fal se 37.Di v er s i fiedpubl i ccor por at i ons,s uchasBer ks hi r eHat hawayandVi r gi nGr oup,cr eat ev al ue t hr oughmanagementexper t i s ebyi mpr ov i ngpl ansandbudget s .Thi si sanex ampl eofar el at ed di v er si ficat i onst r at egy . Tr ue Fal se 38.Por t f ol i omodel ssuc hast heBCG Por t f ol i omat r i xar el i mi t edi nv al uebec auset heyonl ycompar e t heSBUonf ourdi mensi ons . Tr ue Fal se 6-4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 39.I nanal y zi ngt heCabotCor por at i onpor t f ol i ousi ngt heBDG mat r i x ,t hecompanydeci dedt os hi f t awayf r om i t scor ec ompet encet ounr el at edar easofi t sbusi ness .Theensui ngdecl i nei nasset s i ndi cat edt hati tneededt or et ur nt oi t scor ec ompet encei nor dert ogr ow. Tr ue Fal se 40.Ri skr educt i onbyi t s el fi sus ual l yameanst oc r eat es har ehol derv al ue,r egar dl essoft heov er al l di v er si ficat i onst r at egyoft hefir m. Tr ue Fal se 41.Anadv ant ageofmer ger sandac qui si t i onsi st hatt heyc anenabl eafi r mt or api dl yent ernew pr oductmar k et s . Tr ue Fal se 42.Amongt headv ant agesofacqui si t i onsar et heexpens i v epr emi umst hatar ef r equent l ypai dt o acqui r eabusi ness . Tr ue Fal se 43.Thr oughj oi ntv ent ur es,fi r msc andi r ect l yac qui r et heas set sandc ompet enci esofot herfir ms. Tr ue Fal se 44.Thepot ent i aladv ant agesofst r at egi cal l i ancesandj oi ntv ent ur esi ncl udeent er i ngnewmar k et sas wel lasdev el opi nganddi ffusi ngnewt ec hnol ogi es. Tr ue Fal se 45.Oneoft heobl i gat or yaspec t sofst r at egi cal l i ancesi st hedependenceonwr i t t encont r act st o del i mi tr espons i bi l i t i esandenf or cecompl i ance. Tr ue Fal se 46.Anadv ant ageofafir m ent er i ngi nt oas t r at egi cal l i ancei st hati tdoesnothav et os har et heweal t h wi t hi t spar t ner s . Tr ue Fal se 47.Anadv ant ageofi nt er naldev el opmenti st hatfir msdonothavet oc ombi neact i v i t i esacr osst he v al uechai nsofmanycompani esandmer gec ompanycul t ur es. Tr ue Fal se 48.Di v est menti susef ult ohel pafir mr ev er s eanear l i erac qui si t i ont hatdi dnotr esul ti nsuccess f ul gr owt h. Tr ue Fal se 6-5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 49.Zar a,aSpani shcl ot hi ngcompany ,oper at ess t or esi nov er70count r i es .Whenent er i ngmar k et s v er ydi st antf r om i t shomemar k et s ,Zar ar ar el yus esl ocalal l i ancepar t ner st ohel pi tnegot i at et he di ffer entc ul t ur alandr egul at or yenvi r onment s . Tr ue Fal se 50.Compar edt omer ger sandac qui s i t i ons ,fi r mst hatengagei ni nt er naldev el opmentc apt ur et he v al uecr eat edbyt hei rowni nnov at i v eact i vi t i esbynothav i ngt os har et heweal t hwi t hal l i ance par t ner sorf acet hedi fficul t i esass oci at edwi t hcombi ni ngact i vi t i esac r osst hev al uec hai nsof s ev er alfi r msormer gi ngc or por at ecul t ur es. Tr ue Fal se 51.I nr ecenty ear s,manyhi ght echfir mssuc hasPr i c el i ne. com hav es uffer edf r om t henegat i v e i mpactofuncont r ol l edgr owt h. Tr ue Fal se 52.Gr eenmai li sanofferbyacompany ,t hr eat enedbyt ak eov er ,t oofferi t ss t ockatar educedpr i cet o at hi r dpar t y . Tr ue Fal se 53.Agol denpar achut ei sapr ear r angedcont r actwi t hmanager sspeci f yi ngt hat ,i nt heev entofa host i l et ak eov er ,t het ar getc ompanymanager swi l lbepai das i gni ficants ev er ancepackage. Tr ue Fal se 54.Unf r i endl yorhost i l et ak eov er sal way soccurwhent hes t ockoft hecompanybecomes under v al ued. Tr ue Fal se 55.For merMer r i l lLync hCEO J ohnThai ngav eout4bi l l i onUSDi ndi scr et i onar yy ear endbonuses j ustbef or et hecompanywasr esc uedbyBankofAmer i ca.Thi spr act i c edemonst r at esmanager i al gr eed. Tr ue Fal se 56.Poi sonpi l l sar eusedbyacompanyt ot ak eaways har ehol derr i ght si nt heev entofat ak eov erby anot herfi r m. Tr ue Fal se 57.Ant i t ak eoverdef ensesar eal way samanagementpl oyt opr ot ectt hei rownsel fi nt er est s . Tr ue Fal se 58.WhenOr acl el aunc hedahost i l ebi df orPeopl eSof ti n2003,CEO Lar r yEl l i sonaccused Peopl eSof tofl aunchi ngapoi s onpi l lc ampai gn.Theout c omeoft hebi t t erfightwasabet t er fi nanci alr ewar df orPeopl eSof ts har ehol der s . Tr ue Fal se 6-6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 59.Poi sonpi l l sal waysar eus edt opr ot ectt hebesti nt er est sofmanagement . Tr ue Fal se 60.Manager i albehavi or st hater odeshar ehol derr et ur nsi ncl udeegot i s m,ant i t ak eov ert act i csand c ont r ol l edgr owt h. Tr ue Fal se Multiple Choice Questions 61.TheCi scoac qui si t i onofPur eDi gi t alTechnol ogi es,t hepar entoft heFl i pvi deocamer a,f ai l ed because A.Ci scohadv al uabl e compet enci es. B.t heFl i pdi vi si onofCi scowassl ow andl essr es ponsi v et omar k et pr essur es . C. c onsumer scont i nuedt opur c haset he c amer a. D.Ci scohadgoodv i si onoft he mar k et . 62.Whi choft hef ol l owi ngi snotar easonf ormer gerandacqui si t i onf ai l ur es ? A.Theacqui r i ngc ompanypay sapr emi um f ort hecommons t ockoft het ar get c ompany . B.Topex ec ut i v esacti nt hei rbesti nt er est sr at hert hant hoseoft he s har ehol der s. C. Theacqui r edc ompanyass et sar epoor l yi nt egr at edi nt ot heac qui r i ngcompany busi nessl i nes. D.Theac qui si t i onl eadst ov al ue c r eat i on. 6-7 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 63.Cor por at el ev els t r at egyf ocuseson A.gai ni ngl ongt er m r ev enue. B. gai ni ngs hor t t er m pr ofi t s. C. decr eas i ngbusi ness l ocat i ons . D.managi ngi nv est mentbank er sandt hei r i nt er est s . 64.Anac qui si t i ont hatr es ul t si n______________i ndi cat est hatexpect at i onswer enotmet . A.expansi o n B.di v est i t ur e C. c ost s avi ngs D.i ncr eased s al es 65.I n2012,Mi cr osof tadmi t t edt oamaj or_________mi st ak ewheni twr ot eoffessent i al l yt heent i r e 6. 2bi l l i onUSDi tpai df oradi gi t aladv er t i s i ngfir m,aQuant i v e,t hati tpur chas edi n2007. A.expansi o n B.di v est i t ur e C. c ost s avi ngs D.acqui si t i o n 66.I famul t i nat i onalfi r mi sunabl et ounder s t andhowt heacqui r edcompany' sasset swoul dfitwi t h t hei rownl i nesofbusi ness ,t hi scanl eadt o A.expansi o n. B.di v est i t ur e. C. c ost s avi ngs. D.acqui si t i o n. 6-8 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 67.I famul t i nat i onalfi r m pai dt oohi ghapr emi um f ort hecommonst ockoft hecompany ,t hi scanl ead t o A.expansi o n. B.cost s avi ngs. C. di v est i t ur e. D.acqui si t i o n. 68.I famul t i nat i onalc ompany ' smot i vef ort heacqui si t i onmayhav ebeent oenhanceex ecut i v e power sandpr est i ger at hert hant oi mpr ov es har ehol derr et ur n,t hi sc anl eadt o A.di v est i t ur e. B.cost s avi ngs. C. expansi o n. D.acqui si t i o n. 69.I famul t i nat i onalfi r mf ai l st oeffect i v el yi nt egr at et hei racqui si t i ons,t hi sc anr esul ti n A.cost s avi ngs. B.di v est i t ur e. C. expansi o n. D.f ur t her acqui si t i on. 70.Oneoft her easonsi ti ss ai dt hatonl yt hei nv est mentbank erwi nswhenacompanyi sacqui r edi s t hatt hey A.ass ur et henewl yac qui r edcompanywi l lbe s uccessf ul . B.cont i nuet owor kwi t ht het woc ompani es i nv ol v ed. C. c ol l ecthugeupf r ontf eesr egar dl essoft heout come af t er war ds . D.moni t ort hepr ogr essofbot hcompani esf orl ongt er m gr owt h. 6-9 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 71.Di v er s i ficat i oni ni t i at i v esi ncl udeal loft hef ol l owi ngex cept A.mer ger sand acqui si t i ons . B.st r at egi c al l i ances. C. s har ehol der dev el opment . D.j oi nt v ent ur es. 72.Pol ar i s ,amanuf act ur erofsnowmobi l es ,mot or c yc l es,wat er cr af t ,andoffr oadv ehi cl es ,s har es manuf act ur i ngoper at i onsac r ossi t sbusi nesses.I tal s ohasac or por at er esear chand dev el opmentf aci l i t yands t affdepar t ment st hatsuppor tal l oft hePol ar i soper at i ngdi vi si ons .Thi s i sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oac qui r emar k etv al uebyl ev er agi ngcor e c ompet enci es . B.r el at eddi v er si ficat i ont oac qui r eeconomi esofs copeby s har i ng. C. unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.r el at eddi v er si ficat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. 73.ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err aw mat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputt oi t smanuf act ur i ngpr ocess .Thi si san ex ampl eofusi ng A.r el at eddi v er si ficat i ont oac qui r emar k etpowerbypool i ngnegot i at i ng power . B.r el at eddi v er si ficat i ont oac qui r eeconomi esofs copebyl ev er agi ngcor e c ompet enci es . C. r el at eddi v er si ficat i ont oac qui r eeconomi esofs copebyi nt egr at i ngv er t i cal l yi nor dert oacqui r e mar k etpower . D.r el at eddi v er si ficat i ont oac qui r emar k etpowerbyi nt egr at i ng v er t i cal l y . 6-10 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 74.AtCooperI ndus t r i es,t her ear ef ew s i mi l ar i t i esi nt hepr oduct si tmakesort hei ndust r i esi nwhi c hi t c ompl et es .Thecor por at eofficeaddsv al uet hr oughs uchact i vi t i esass uper bhumanr esour ce pr act i cesandbudget i ngs ys t ems .Thi si sanex ampl eofusi ng A.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er si ficat i ont oac qui r emar k etpowerbyl ev er agi ngc or e c ompet enci es . C. unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er si ficat i ont oacqui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. 75.Nov ar t i s ,f or mer l yCi baGei gy ,usespor t f ol i omanagementt oi mpr ov emanyk eyact i vi t i es, i nc l udi ngr esour ceal l ocat i onandr ewar dandev al uat i ons ys t ems .Thi si sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oac hi ev ev al uebyl ev er agi ngpool ednegot i at i ngpowert oat t ai n economi esofscope. B.r el at eddi v er si ficat i ont oac qui r emar k etpowerbyl ev er agi ngpool ednegot i at i ng power . C. unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.r el at eddi v er si ficat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. 76.3M l ev er agesi t scompet enci esi nadhesi v est ec hnol ogi est omanyi ndust r i es ,i ncl udi ng aut omot i v e,c onst r uct i on,andt el ecommuni c at i ons.Thi si sanex ampl eofusi ng A.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er si ficat i ont oac qui r eeconomi esofs copebyl ev er agi ngcor e c ompet enci es . C. unr el at eddi v er si ficat i ont ofinanci als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er si ficat i ont opar ent i ng,r est r uct ur i ng,andfi nanci als y ner gi est hr ough r est r uct ur i ngandpar ent i ng. 6-11 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 77.Manyl eadi nghi ght ec hfir mss uchasGoogl e,Appl e,andI nt elhavedr amat i c al l yenhancedt hei r r ev enues ,pr ofit s ,andmar k etv al uest hr oughawi dev ar i et yofdi v er s i ficat i oni ni t i at i v es.Whi chof t hef ol l owi ngi snots uchani ni t i at i v e? A.ac qui si t i on s B.st r at egi c al l i ances C. s t ockhol der enhancement D.j oi nt v ent ur es 78.Fi r mshav esev er alchoi cesofdi ver si ficat i oni ni t i at i v est hatcanbeus edt ocr eat ev al ue.Whi chof t hef ol l owi ngi snotoneoft hem? A.usi ngr el at eddi v er si ficat i ont oac qui r eeconomi esofscopel ev er agi ngpool ed negot i at i ngpower B.usi ngr el at eddi v er si ficat i ont oac qui r emar ketpowerbyl ev er agi ngc or e c ompet enci es C. usi ngunr el at eddi v er si ficat i ont oac qui r efinanci als yner gi est hr oughpor t f ol i o management D.usi ngr el at eddi v er s i ficat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfi nanci als yner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng 79.ConAgr a,adi v er si fiedf oodpr oducer ,i nc r easesi t spowerov ers uppl i er sbycent r al l ypur chas i ng hugequant i t i esofpack agi ngmat er i al sf oral lofi t sf ooddi vi si ons .Thi si sanex ampl eofusi ng A.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er si ficat i ont oac qui r emar k etpowerbyl ev er agi ngpool ednegot i at i ng power . C. unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er si ficat i ont oacqui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough r est r uct ur i ngandpar ent i ng. 6-12 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 80.Pr oc t orandGambl ei sal ar gemul t i nat i onalor gani z at i ont hathasmanybusi nesss har i ng di s t r i but i onr esour ces .Di v er si ficat i onst r at egi est ak eadv ant ageoft he__________t hatexi sti n t hei ror gani z at i on. A.cost s B.empl oy e es C. s yner gi e s D.di s cont i nui t i e s 81.Casi o,agi antel ect r oni cpr oduct spr oducer ,s y nt hesi z esi tabi l i t i esi nmi ni at ur i z at i on, mi cr opr ocessordesi gn,mat er i als ci ence,andul t r at hi npr eci si onc ast i ngst opr oducedi gi t al wat c hes .I tusest hes ameski l l st opr oducec ar dcal cul at or s ,di gi t alcamer as,andot hers mal l el ect r oni cs .Thes ecol l ect i v es ki l l sar ek nownas A.cor e compet enci es. B.st r at egi c r esour ces. C. s har ed act i vi t i es . D.economi esof s cope. 82.Foracor ecompet encet obeavi abl ebasi sf ort hec or por at i ons t r engt heni nganewbus i nessuni t , t her ear et hr eer equi r ement s .Whi choneoft hef ol l owi ngi snotoneoft heser equi r ement s ? A.Thecompet encemus thel pt hebus i nessgai ns t r engt hr el at i v et oi t s c ompet i t i on. B.Thenewbusi nessmustbes i mi l art oexi st i ngbus i nessest obenefi tf r om acor e c ompet ence. C. Thenewbus i nessmus thav eanest abl i s hedl ar ge mar k ets har e. D.Thecol l ect i onofcompet enci ess houl dbeuni que,sot hatt heycannotbeeasi l y i mi t at ed. 6-13 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 83.Shar i ngcor ecompet enci esi soneoft hepr i mar ypot ent i aladv ant agesofdi v er si fic at i on.I nor der f ordi v er s i fi cat i ont obemosts uccess f ul ,i ti si mpor t antt hatt he A.pr oduc t sus esi mi l ardi st r i but i on c hannel s . B.si mi l ar i t yr equi r edf orshar i ngc or ecompet enci esmustbei nt he v al uechai n. C. t ar getmar k eti st hes ame,ev eni ft hepr oduct sar ev er y di ffer ent . D.met hodsofpr oduct i onar et he s ame. 84.Whenmanagementusescommonpr oduct i onf aci l i t i esorpur chas i ngpr ocedur est odi s t r i but e di ffer entbutr el at edpr oduct s ,t heyar e A.bui l di ngoncor e c ompet enci es . B.achi evi ngpr oces s gai ns . C. usi ngpor t f ol i o anal ys i s. D.s har i ng act i vi t i es . 85.ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err aw mat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputi nt oi t smanuf act ur i ngpr ocess .Thi si s anex ampl eof A.v er t i c al i nt egr at i on. B.shar i ng act i vi t i es . C. pool ednegot i at i ng power . D.l ev er agi ngc or e compet enci es. 86.Ther i sksofv er t i cali nt egr at i oni ncl udeal loft hef ol l owi ngex cept A.cost sandex pensesassoci at edwi t hi ncr easedov er headandcapi t al expendi t ur es . B.l ackofcont r olov erv al uabl e as set s . C. pr obl emsass oci at edwi t hunbal ancedc apaci t i esal ongt he v al uechai n. D.addi t i onaladmi ni s t r at i v ecos t sas soci at edwi t hmanagi ngamor ecompl exs etof act i v i t i es. 6-14 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 87.Unbal ancedcapaci t i est hatl i mi tc ostsav i ngs ,di fficul t i esi nc ombi ni ngspeci al i zat i ons ,and r educedfl exi bi l i t yar edi s adv ant agesassoci at edwi t h A.st r at egi c al l i ances. B.v er t i cal i nt egr at i on. C. hor i z ont al i nt egr at i on. D.di vest i t ur e. 88.Afir ms houl dconsi derv er t i cali nt egr at i onwhen A.t hecompet i t i v es i t uat i oni shi ghl y v ol at i l e. B.cust omerneedsar e ev ol vi ng. C. t hes uppl i er sofr awmat er i al st ot hefir m ar eunabl et omai nt ai nqual i t y s t andar ds. D.t hesuppl i er soft hefi r m wi l l i ngl ycooper at ewi t ht he fi r m. 89.Tr ansact i oncost si ncl udeal loft hef ol l owi ngc ost sex cept A.agenc y c ost s . B.negot i at i ng c ost s . C. s ear ch c ost s . D.moni t or i ng c ost s . 90.Ver t i cali nt egr at i oni sat t r act i v ewhen A.i nt er naladmi ni st r at i v ec ost sar ehi ghert hant r ansact i on c ost s . B.t r ansact i oncos t sandi nt er naladmi ni st r at i v ec ost sar e equal . C. t r ansact i oncost sar ehi ghert hani nt er naladmi ni st r at i v e c ost s . D.sear chcost sar ehi ghert hanmoni t or i ng c ost s . 6-15 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 91.Cr eat i ngv al uewi t hi nbusi nessuni t scanhappenwhent hecor por at eofficehel pss ubsi di ar i es mak ewi s echoi cesi nt hei rownac qui si t i ons ,di vest ur es,andnewv ent ur es.Thi si sk nownas A.par ent i n g. B.r est r uct ur i n g. C. l ev er agi ngcor e c ompet enci es . D.i ncr easi ngmar k et power . 92.Cr eat i ngv al uewi t hi nbusi nessuni t scanhappenwhenafir mt r i est ofindandac qui r eei t herpoor l y per f or mi ngfi r mswi t hunr eal i z edpot ent i alorfir msi ni ndus t r i esont het hr eshol dofs i gni ficant , posi t i v ec hange.Thi sact i oni sknownas A.r es t r uct ur i n g. B.l ev er agi ngcor e c ompet enci es . C. par ent i n g. D.s har i ng act i vi t i es . 93.Accor di ngt ot het ext ,c or por at er es t r uct ur i ngi ncl udes A.capi t alr est r uct ur i ng,assetr est r uct ur i ng,andt ec hnol ogy r est r uct ur i ng. B.capi t alr est r uct ur i ng,assetr est r uct ur i ng,andmanagement r est r uct ur i ng. C. managementr es t r uct ur i ng,financi alr est r uct ur i ng,andpr oc ur ement r est r uct ur i ng. D.gl obaldi v er si ficat i on,c api t alr est r uct ur i ng,andass et r est r uct ur i ng. 94.Por t f ol i omanagementmat r i cesar eappl i edt owhatl ev elofs t r at egy ? A.depar t ment al l ev el B.busi nes s l ev el C. c or por at e l ev el D.i nt er nat i onal l ev el 6-16 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 95.Whenusi ngaBCG mat r i x ,abus i nesst hatcur r ent l yhol dsal ar gemar kets har ei nar api dl y gr owi ngmar k etandhasmi ni malornegat i v ec ashfl ow woul dbek nownasa A.St ar . B.Dog . C. Cash Cow. D.Quest i on Mar k. 96.I nt heBCG Mat r i x ,abusi nesst hathasal owmar kets har ei nani ndust r ychar act er i z edbyhi gh mar k etgr owt hi st er meda A.St ar . B.Cash Cow. C. Quest i on Mar k. D.Dog . 97.Por t f ol i omanagementf r amewor k s,s uc hast heBCG mat r i x ,s har ewhi choft hef ol l owi ng c har act er i st i c s ? A.Busi nessesar epl ot t edona3di mensi onal gr i d. B.Gr i ddi mensi onsar ebasedonext er nalenvi r onment sandi nt er nalcapabi l i t i esmar k et posi t i ons . C. Posi t i oni nt hemat r i xs uggest saneedf orshar i ng s yner gi es . D.Theyar emos thel pf uli nhel pi ngbus i nessesdevel opt ypesofcompet i t i ve adv ant age. 98.ACas hCow,i nt heBCGf r amewor k ,r ef er st oabusi nes st hathas A.hi ghmar k etgr owt handr el at i vel yhi ghmar k et s har e. B.r el at i v el yl ow mar k etshar eandl owmar k et gr owt h. C. r el at i v el yl ow mar k etshar eandhi ghmar k et gr owt h. D.l owmar k etgr owt handr el at i v el yhi ghmar k et s har e. 6-17 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 99.I nmanagi ngt hecor por at epor t f ol i o,t heBCG mat r i xwoul ds uggestt hat A.Dogss houl dbei nv est edi nt oi ncr easemar k ets har eandbecome Cas hCows . B.St ar sar ei nl owgr owt hmar k et sandcanpr ovi deex cesscasht of undot her oppor t uni t i es. C. CashCowsr equi r esubst ant i alcas hout l ay st omai nt ai n mar k ets har e. D.Quest i onMar k scanr epr esentf ut ur eSt ar si ft hei rmar k ets har ei s i nc r eased. 100I nt heBCG Gr owt hShar eMat r i x ,t hes uggest edst r at egyf orSt ar si st o . A.mi l kt hem t ofinanceot her busi nesses. B.i nvestl ar ges umst ogai nagoodmar k et s har e. C. mai nt ai nposi t i onandaf t ert hemar k etgr owt hsl owsus et hebusi nesst opr ovi de c ashfl ow. D.noti nv es ti nt hem andt oshi f tc ashflowt oot her busi nesses. 101Thepr i mar ymeansbywhi chafi r mc andi ver si f yar e__________,_________,and________. . A.mer ger sandacqui si t i ons;di ffer ent i at i on;ov er al lcost l eader s hi p B.mer ger sandacqui si t i ons;j oi ntv ent ur esands t r at egi cal l i ances ;i nt er nal dev el opment C. j oi ntv ent ur esandst r at egi cal l i ances;i nt egr at i onofv al uechai nact i v i t i es ;ac qui r i ng humancapi t al D.mer ger sandacqui si t i ons;i nt er naldev el opment ; di ffer ent i at i on 102Thedownsi desorl i mi t at i onsofmer ger sandac qui si t i onsi nc l udeal loft hef ol l owi ngex cept : . A.I ti sasl ow meanst oent ernewmar k et sandacqui r es ki l l sand c ompet ences . B.Di fficul t i esex i s ti ni nt egr at i ngt heact i v i t i esandr es our cesoft heacqui r edfi r mi nt oongoi ng oper at i ons . C. Ther ec anbemanycul t ur ali s suest hatcandoom anot her wi s epr omi si ng acqui si t i on. D.Pr emi umst hatar ef r equent l ypai dt oacqui r eabusi nessar e expensi v e. 6-18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 103Di v est i ngofbusi ness esc anaccompl i s hmanydi ffer entobj ect i v es ,exc ept . A.enabl i ngmanager st of ocust hei reffor t smor edi r ect l yont hec or ebusi nessesof t hefi r m. B.pr ovi di ngt hefir m wi t hmor er es our cest os pendonmor eat t r act i ve al t er nat i ves. C. r ai si ngcas ht ohel pf undexi st i ng busi nesses. D.di s per si ngmanager f ocus . 104I BM,Memor i alSl oanKet t er i ng,andCedar s Si naihav ea_________wher ebyI BM r ecei v es . exper tmedi c alknowl edget hati tusest ol ev er agei t st echnol ogi calski l l st odev el opnewmedi cal i ns i ght s . A.j oi nt di v er si ficat i on B.di v est me nt C. s t r at egi c al l i ance D.gl obal i nt egr at i on 105Cooper at i v er el at i onshi pss uchas__________hav epot ent i aladv ant agess uchasent er i ngnew . mar k et s ,r educi ngmanuf act ur i ng( orot her )c ost si nt hev al uec hai n,anddev el opi nganddi ffusi ng newt echnol ogi es. A.f r anc hi se s B.mer ger s C. acqui si t i on s D.j oi ntv ent ur esandst r at egi c al l i ances 106Whi choft hef ol l owi ngi snotpar tofagoodgui del i nel i s tf ormanagi ngs t r at egi cal l i ances ? . A.es t abl i shi ngac l earunder s t andi ngbet ween par t ner s B.notshor t c hangi ngy our par t ner C. r el yi ngpr i mar i l yonacont r actt omak et hej oi ntv ent ur e wor k D.wor ki nghar dt oensur eacol l abor at i ver el at i onshi pbet ween par t ner s 6-19 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 107Whi choft hef ol l owi ngst at ement sr egar di ngi nt er naldev el opmentasameansofdi ver si ficat i oni s . f al s e? A.Manycompani esusei nt er naldev el opmentt oext endt hei rpr oductor s er vi c eoffer s . B.Anadv ant ageofi nt er naldev el opmenti st hati ti sgener al l yf ast ert hanot hermeansof di v er si ficat i onandfir msc anbenefitf r om s peedi ndev el opi ngnew pr oduct sands er v i ces. C. Thefi r mi sabl et oc apt ur eweal t hc r eat edwi t houthavi ngt os har et heweal t hwi t hal l i ance par t ner s . D.Fi r mscanof t endev el oppr oduct sors er vi cesatal owerc ost ,i ft heyr el yont hei rown r esour cesi ns t eadofext er nalf undi ng. 108I nt er naldev el opmentmaybet i mec onsumi ngand,t her ef or e,fir msmayf or f ei tt hebenefit sof . s peedt hatgr owt ht hr ough__________and__________canpr ov i de. A.st r at egi cal l i ances;j oi nt v ent ur es B.st r at egi cal l i ances; mer ger s C. mer ger s ; acqui si t i ons D.mer ger s;j oi nt v ent ur es 109Fi r mst hatchoos et odi v er s i f yt hr oughi nt er naldev el opmentmustdev el op_________t hatal l ow . t hem t omov e__________f r om i ni t i aloppor t uni t yr ecogni t i ont omar k eti nt r oduct i on. A.st r at egi es; s l owl y B.capabi l i t i es; qui ckl y C. c apabi l i t i es; s l owl y D.st r at egi es; qui ckl y 6-20 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 110Li onsgat e( aCanadi anAmer i canent er t ai nmentc ompany)andAl i baba( aChi nes eecommer c e . c ompany )c r eat ed_________t oopent heChi nes emar k etf ort heLi ons gat est r eami ngshowsand movi es .Al i babapr ofi t sbyget t i ngaccesst oc ont entt oi nc r easedemandf ori t sownset t opmedi a box es . A.aj oi nt v ent ur e B.a mer ger C. an acqui si t i on D.ast r at egi c al l i ance 111Accor di ngt oMi chaelPor t er ,t her ei sat r emendousal l ur et o_________.I ti st hebi gpl ay ,t he . dr amat i cgest ur e.Wi t hones t r ok eoft hepeny ouc anaddbi l l i onst os i z e,getaf r ont pagest or y , andc r eat eex ci t ementi nmar k et s . A.st r at egi cal l i ancesandj oi nt v ent ur es B.i nt er nal dev el opment C. mer ger sand acqui si t i ons D.di ffer ent i at i on s t r at egi es 112Theant i t ak eov ert act i c,_______,i swhenafi r m offer st obuys har esoft hei rs t ockf r om a . c ompany( ori ndi v i dual )pl anni ngt oacqui r et hei rfir m atahi gherpr i cet hant heunf r i endl y c ompanypai df ori t . A.gol den par achut e B.poi son pi l l C. gr eenma i l D.sc or ched ear t h 6-21 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 113Anant i t ak eov ert act i ci nwhi c hexi st i ngshar ehol der shav et heopt i ont obuyaddi t i onalshar esof . s t ockatadi scountt ot hec ur r entmar k etpr i c ei scal l ed______. A.gr eenma i l B.agol den par achut e C. apoi s on pi l l D.sc or ched ear t h 114Thet er m gol denpar achut er ef er st o . A.acl auser equi r i ngt hathugedi vi dendpayment sbemadeupon t ak eover . B.paygi v ent oex ecut i v esfir edbecaus eofa t ak eover . C. fi nanci ali nducement soffer edbyat hr eat enedfi r mt os t opahost i l es ui t orf r om acqui r i ngi t . D.manager sofafir mi nahost i l et ak eov erappr oachi ngat hi r dpar t yaboutmaki ngt he ac qui si t i on. 115Ant i t ak eovert act i csi ncl udeal loft hef ol l owi ngex cept . A.gr eenmai l . B.poi son pi l l s . C. gol den par achut es . D.gol den handcuffs . 6-22 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Chapt er06Cor por at eLev elSt r at egy :Cr eat i ngVal uet hr ough werKey Di v er s i fi cat i onAns True / False Questions 1. Resear chs howst hatt hev astmaj or i t yofac qui si t i onsofpubl i cc or por at i onsr es ul t si nv al ue c r eat i onr at hert hanv al uedes t r uct i on. FALSE Resear chs howst hatt hev astmaj or i t yofac qui si t i onsofpubl i cc or por at i onsr es ul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 2. TheHewl et t Pac kar dandAut onomymer geri n2011i sanexampl eofasuccess f ulmer ger . FALSE I n2012,Hewl et t Pack ar dwr ot eoff9bi l l i onUSDoft he11bi l l i onUSDi tpai df orAut onomy ,a s of t war ec ompanyt hati tpur chasedoney earear l i er .Af t ert hepur c hasewascompl et ed,HP r eal i z edt hatt heAut onomyaccount i ngst at ement swer enotacc ur at e.Thi sr esul t edi nanear l y 80per centdr opi nt hev al ueofAut onomyoncet heaccount i ngi r r egul ar i t i eswer ecor r ect ed. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 3. Manyacqui si t i onsul t i mat el yr esul ti ndi v es t i t ur e. TRUE Manyacqui si t i onsul t i mat el yr esul ti ndi v es t i t ur e,t hati s ,anadmi ss i ont hatt hi ngsdi dnotwor k outaspl anned.I nf act ,s omey ear sago,awr i t erf orFor t unemagaz i nel ament edt hatst udi es s how t hat33per centt o50per centofacqui si t i onsar el at erdi v est ed,gi vi ngcor por at e mar r i agesadi v or cer at er oughl ycompar abl et ot hatofmenandwomen. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-23 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 4. Att i mes ,t heonl yot herpeopl ewhomayhav ebenefit edf r om amer ger acqui si t i onwer et he s har ehol der soft heac qui r edfir msort hei nv est mentbank er sadvi si ngt heacqui r i ngfir m. TRUE Att i mes ,t heonl yot herpeopl ewhomayhav ebenefit edwer et heshar ehol der soft heac qui r ed fi r msort hei nv est mentbank er swhoadv i s et heac qui r i ngfir m,becauset heyc ol l ecthugef ees upf r ontr egar dl essofwhathappensaf t er war d. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 5. Reasonsf orac qui si t i onf ai l ur ei nc l udet heeffect i vei nt egr at i onoft heac qui si t i on. FALSE Resear chs howst hatt hev astmaj or i t yofac qui si t i onsr es ul ti nv al uedes t r uct i onr at hert han v al uecr eat i on.Manyl ar gemul t i nat i onalfir mshav eal s of ai l edt oeffect i v el yi nt egr at et hei r acqui si t i ons ,pai dt oohi ghapr emi um f ort hecommons t ockoft heacqui r edfi r m,orwer e unabl et ounder s t andhowt heass et soft heacqui r edfi r m woul dfitwi t ht hei rownl i nesof busi ness . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6. Cor por at el ev els t r at egyf ocusesongai ni ngs hor t t er mr ev enuet hr oughmanagi ngoper at i ons i nmul t i pl ebus i nesses . FALSE Cor por at el ev els t r at egyf ocusesongai ni ngl ongt er mr ev enue,pr ofit s ,andmar k etv al ue t hr oughmanagi ngoper at i onsi nmul t i pl ebusi nesses. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-24 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 7. Spr i ntandNex t elmer gedi n2005.Thesuc cessf ulmer gerr esul t edi na31bi l l i onUSDmer ger r el at edchar get hatl eadt oa76per centdecr easei ni t sv al uebyl at e2012. FALSE Thi si sanex ampl eofanunsucces sf ulmer ger .Thes t ockpr i c econt i nuedt obeani s suewhen Sof t Bankannouncedt hati twoul dpur chaseSpr i ntNext eli n2012andf oundt hati t sownst ock pr i cedr opped20per centt heweekaf t erannounci ngi t sac qui si t i oni nt ent i ons . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 8. I nas t udyof270i nt er nat i onalmer ger sbet ween2000and2003i twasf oundt hats al esgr owt h i nc r eased,ear ni ngsgr owt hi nc r eased,andmar k etv al uat i onsi ncr easedov er al lf ort hemer ged c ompani es . FALSE Ast udyi nv est i gat ed270mer ger st hatt ookpl ac ebet ween2000and2003i nmul t i pl ecount r i es andr egi ons .I tf oundt hataf t eramer ger ,s al esgr owt hdecr easedby6per cent ,ear ni ngs gr owt hdr opped9. 4per cent ,andmar k etv al uat i onsdec l i ned2. 5per cent( figur esar eadj ust ed f ori ndust r yt r endsandr ef ert ot hr eey ear spr e-orpos t mer ger ) . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 9. Oneoft her easonst hatt heCi s coacqui s i t i onoft heFl i ppr oductf ai l edi st hatt hec or e busi nesseswer ev er ydi ffer ent . TRUE Ci scowasunabl et oav oi df ai l ur ewi t hFl i pf ort wor eas ons.Fi r st ,Ci scocor ebusi ness oper at i onsar ei nbusi nessnet wor ki ngequi pmentands of t war e.Fl i pbus i nesswassel l i ng v i deocamer ast oi ndi vi dualcus t omer s .Thi si sav er ydi ffer entbusi ness ,wher et heCi s co k nowl edgeandot herc ompet enci eswer eofl i t t l ev al ue.Whi l eCi s cohass omesuccess ext endi ngi nt ot hecons umermar k et ,s uchaswi t hi t sacqui si t i onofLi nks ys ,t hi ss uccesshas c omei nt hehomenet wor ki ngbusi ness ,amar k ett owhi chCi scoc ant r ansf ers omeofi t s busi nessnet wor ki ngc ompet enci es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-25 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 10. I nl ar ge,wi del ydi v er s i fiedfir ms,deci si onmaki ngcanbecomesl ow andr emot et omar k et c ondi t i onst husc r eat i ngpot ent i aldi fficul t i esf ors uccessf ulmer ger sasevi dencedbyt heCi scoFl i pf ai l ur e. TRUE Ci scowasunabl et oav oi df ai l ur ewi t hFl i pf ort wor eas ons.Oneoft hesei st hati t snear l y60 deci si onmaki nggr oupswi t hmanyl ay er sofr espons i bi l i t ymadei tdi fficul tf orCi s cot obe r esponsi v et omar k etpr essur esont heFl i ppr oduct .Thi sj us twasnotapr i or i t ys i ncet heFl i p di vi si onhadamer e400mi l l i onUSDi nannuals al es ,r epr esent i ngonl y1per centoft heov er al l s al esofCi sco. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 11. Al ldi v er s i fi cat i onmov es ,i ncl udi ngt hos ei nv ol v i ngmer ger sandacqui si t i ons,er ode per f or mance. FALSE Notal ldi v er si ficat i onmoves,i ncl udi ngt hosei nv ol vi ngmer ger sandacqui s i t i ons,er ode per f or mance.Forex ampl e,acqui si t i onsi nt heoi li ndust r y ,suchast heBr i t i s hPet r ol eum pur c hasesofAmocoandAr co,ar eper f or mi ngwel lasi st heEx x onMobi lmer ger .Met Li f ewas abl et odr amat i cal l yexpandi t sgl obalf oot pr i ntbyacqui r i ngAl i co,agl obalpl ayeri nt he i ns ur ancebusi nessf r om AI Gi n2010whenAI Gwasi nfi nanci aldi st r es s. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 12. Di v er s i ficat i oni ni t i at i v esmustbej ust i fiedbyt hecr eat i onofv al uef ors har ehol der s . TRUE Di v er s i ficat i oni ni t i at i v es,whet hert hr oughmer ger sandac qui si t i ons,s t r at egi cal l i ancesand j oi ntv ent ur es ,ori nt er naldev el opment ,mus tbej ust i fiedbyt hecr eat i onofv al uef or s har ehol der s.Theyt ypi cal l yar es ucces sf ulwhent heyi nt r oduces yner gy . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-26 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 13. Whenfir msdi v er si f yi nt ounr el at edbus i nesses ,t hepr i mar ypot ent i albenefit sar ehor i z ont al r el at i ons hi ps ,i . e. ,busi ness ess har i ngt angi bl eandi nt angi bl er esour ces . FALSE Whenac or por at i ondi v er s i fi esi nt ounr el at edbusi nesses,t hepr i mar ypot ent i albenefit sar e der i v edl ar gel yf r om hi er ar chi calr el at i onshi ps,whi chi sv al uecr eat i onder i v edf r om t he c or por at eoffice.Hor i z ont alr el at i onshi psar et hepr i mar ybenefitofdi v er si fi cat i oni nt or el at ed busi nesses. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 14. Whenfir msdi v er si f yi nt or el at edbusi ness es,t hepr i mar ypot ent i albenefi t sc omef r om hor i z ont alr el at i onshi ps ,whi char ebusi nessesshar i ngi nt angi bl eandt angi bl er es our ces. TRUE Afir m maydi v er s i f yi nt or el at edbusi nesses .Her e,t hepr i mar ypot ent i albenefit st obeder i v ed c omef r om hor i z ont alr el at i onshi ps;t hati s,busi nes sess har i ngi nt angi bl er esour ces( e. g. ,cor e c ompet enci ess uchasmar k et i ng)andt angi bl er esour ces( e. g. ,pr oduct i onf aci l i t i es, di s t r i but i onc hannel s) . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 15. Benefit sder i v edf r om hor i z ont alandhi er ar chi c alr el at i onshi psar emut ual l yex cl usi v e. FALSE Benefit sder i v edf r om hor i z ont al( r el at eddi v er si ficat i on)andhi er ar chi cal( unr el at ed di v er si ficat i on)r el at i onshi psar enotmut ual l yexc l usi v e.Manyfi r mst hatdi v er si f yi nt or el at ed ar easbenefitf r om i nf or mat i ont echnol ogyexper t i sei nt hec or por at eoffice.Si mi l ar l y ,unr el at ed di v er si fier sof t enbenefitf r om t hebestpr act i cesofsi st erbusi nes sesev ent hought hei r pr oduct s ,mar k et s ,andt ec hnol ogi esmaydi fferdr amat i cal l y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-27 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 16. Economi esofs copear ecos ts avi ngsf r om l ev er agi ngc or ecompet enci esorshar i ngunr el at ed act i vi t i esamongbus i nessesi nacor por at i on. FALSE Economi esofs copear ecos ts avi ngsf r om l ev er agi ngc or ecompet enci esorshar i ngr el at ed act i vi t i esamongbus i nessesi nacor por at i on. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 17. CooperI ndust r i eshasf ol l owedas uccessf uls t r at egyofr el at eddi v er si ficat i on.Ther ear ef ew s i mi l ar i t i esi nt hepr oduct si tmakesort hei ndust r i esi nwhi c hi tcompet es . FALSE CooperI ndust r i eshasf ol l owedas uccessf uls t r at egyofunr el at eddi v er si ficat i on.Ther ear ef ew s i mi l ar i t i esi nt hepr oduct si tmakesort hei ndust r i esi nwhi c hi tcompet es ;howev er ,t he c or por at eofficeaddsv al uet hr oughs uchact i vi t i esass uper bhumanr esour cepr act i cesand budget i ngs y st ems. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 18. ConAgr ausest her el at eddi v er si ficat i onv er t i c ali nt egr at i oni ni t i at i v et oenhancemar k etpower . Theydot hi st oi nc r easet hei rpowerov ersuppl i er sbycent r al l ypur chasi nghugequant i t i esof packagi ngmat er i al sf oral lofi t sf ooddi vi si ons. FALSE ConAgr ausespool ednegot i at i ngpowert oenhancemar k etpower .Theydot hi st oi ncr ease t hei rpowerov ersuppl i er sbycent r al l ypur chas i nghugequant i t i esofpackagi ngmat er i al sf or al lofi t sf ooddi vi s i ons. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-28 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 19. ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err awmat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputt oi t smanuf act ur i ngpr ocess .Thi si s anex ampl eofusi ngt her el at eddi v er s i ficat i onv er t i cali nt egr at i oni ni t i at i v et oenhancet hei r mar k etpower . TRUE Fi r st ,afir m maydi v er si f yi nt or el at edbus i ness es.Her e,t hepr i mar ypot ent i albenefit st obe der i v edcomef r om hor i z ont alr el at i onshi ps ,t hati s,busi nes sess har i ngi nt angi bl er esour ces ( e. g. ,cor ecompet enci essuchasmar k et i ng)andt angi bl er esour ces( e. g. ,pr oduct i onf aci l i t i es, di s t r i but i onc hannel s) .Fi r mscanal soenhancet hei rmar k etpowervi apool ednegot i at i ng powerandv er t i cali nt egr at i on. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 20. Nov ar t i s,f or mer l yCi baGei gy ,usespor t f ol i omanagementt oi mpr ov emanyk eyact i v i t i es , i nc l udi ngr esour ceal l ocat i onandr ewar dandev al uat i ons ys t ems .Thi si sanex ampl eofusi ng unr el at eddi v er si ficat i oncor por at er est r uct ur i ngandpar ent i ngi ni t i at i v est oc r eat ev al ue. FALSE Acor por at i onmaydi v er si f yi nt ounr el at edbus i nesses .Nov ar t i shasf ol l owedasuc cessf ul s t r at egyofunr el at eddi v er si fi cat i on.Her e,t hepr i mar ypot ent i albenefit sar eder i v edl ar gel y f r om hi er ar c hi calr el at i onshi ps ,t hati s,v al uecr eat i onder i v edf r om t hecor por at eoffice. Ex ampl esoft hel at t erwoul di nc l udel ev er agi ngs omeoft hesuppor tact i vi t i esi nt hev al ue c hai n.Unr el at eddi v er si fier sof t enbenefitf r om t hebestpr act i cesofsi st erbusi ness es,ev en t hought hei rpr oduct s ,mar k et s ,andt echnol ogi esmaydi fferdr amat i cal l y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 21. Rel at eddi v er si ficat i onenabl esafir mt obenefitf r om hor i z ont alr el at i onshi psacr ossdi ffer ent busi nessesi nt hedi ver si fiedcor por at i onbyl ev er agi ngc or ecompet enci esands har i ng act i vi t i es . TRUE Rel at eddi v er si ficat i onenabl esafir mt obenefitf r om hor i z ont alr el at i onshi psacr ossdi ffer ent busi nessesi nt hedi ver si fiedcor por at i onbyl ev er agi ngc or ecompet enci esands har i ng act i vi t i es( e. g. ,pr oduct i onanddi st r i but i onf aci l i t i es) .Thi senabl esac or por at i ont obenefitf r om economi esofscope. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :1Eas y 6-29 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 22. Economi esofs copei nar el at eddi v er si ficat i onst r at egyr esul tf r om t hel ev er agi ngofc or e c ompet enci esandt hes har i ngofact i vi t i esamongbus i ness esi nt hec or por at i ons uchas pr oduct i on. TRUE Rel at eddi v er si ficat i onenabl esafir mt obenefitf r om economi esofsc ope,whi char ecost s avi ngst hatar eder i v edf r om l ev er agi ngc or ecompet enci esorshar i ngr el at edact i v i t i esamong busi nessesi nacor por at i on.Afi r m canal soenj oygr eat err ev enuesi ft wobusi nes sesat t ai n hi gherl ev el sofsal esgr owt hcombi nedt hanei t herc ompanycoul dat t ai ni ndependent l y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :1Eas y Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 23. Cor ec ompet enci esdonotcr eat ev al uei nabusi ness. FALSE Cor ec ompet enci esmayal sobevi ewedast hegl uet hatbi ndsexi st i ngbusi nessest oget heror ast heengi net hatf uel snewbusi nessgr owt h.Theyr eflectt hecol l ect i v el ear ni ngi n or gani z at i onss uchashowt oc oor di nat edi v er s epr oduct i onski l l s ,i nt egr at emul t i pl est r eamsof t ec hnol ogi es ,andmar k etdi ver sepr oduct sandser vi ces. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 24. Foracor ecompet encyt oc r eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustatl eas tcr eat esuper i orcus t omerv al ueandi tmustbe di ffic ul tt oi mi t at e. TRUE Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:i tmustenhancec ompet i t i v eadv ant age byc r eat i ngs uper i orc ust omerv al ue;di ffer entbusi nessesi nt hec or por at i onmustbes i mi l ari n atl eastonei mpor t antwayr el at edt ot hecor ec ompet ence;andi tmustbedi fficul tf or c ompet i t or st oi mi t at eorfi nds ubst i t ut esf ori t . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 6-30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 25. Gi l l et t edev el opedt heFusi onandMac h3s havi ngs y st emst hatc r eat eds uper i orc ust omer v al ueasar esul toft hecompanycor ecompet enc yi nr esear chanddevel opment . TRUE Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:i tmustenhancec ompet i t i v eadv ant age byc r eat i ngs uper i orc ust omerv al ue;di ffer entbusi nessesi nt hec or por at i onmustbes i mi l ari n atl eastonei mpor t antwayr el at edt ot hecor ec ompet ence;andi tmustbedi fficul tf or c ompet i t or st oi mi t at eorfi nds ubst i t ut esf ori t .Ev er yv al uec hai nact i vi t yhast hepot ent i alt o pr ovi deav i abl ebasi sf orbui l di ngonacor ecompet ence.AtGi l l et t e,s ci ent i s t sdev el opedt he Fusi onandMac h3af t ert hei nt r oduct i onoft het r emendousl ys uccessf ulSens orSy st em becauseofat hor oughunder st andi ngofsev er alphenomenat hatunder l i eshav i ng.Thes e i nc l udet hephy si ol ogyoff ac i alhai rands ki n,t hemet al l ur gyofbl adest r engt handshar pness, t hedynami csofacar t r i dgemovi ngac r osss ki n,andt hephy si csofar az orbl ades ev er i nghai r . Suchi nnov at i onsar eposs i bl eonl ywi t hanunder s t andi ngofsuchphenomenaandt heabi l i t y t oc ombi nesuc ht echnol ogi esi nt oi nnov at i v epr oduct s .Cus t omer sar ewi l l i ngt opaymor ef or s ucht ec hnol ogi cal l ydi ffer ent i at edpr oduc t s. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 26. Oneoft hec r i t er i af oracor ec ompet encei st hatt hedi ffer entbusi nes sesi nt hec or por at i on mus tbesi mi l ari natl eastonei mpor t antwayr el at edt ot hecor ec ompet ence. TRUE Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:i tmustenhancec ompet i t i v eadv ant age byc r eat i ngs uper i orc ust omerv al ue;di ffer entbusi nessesi nt hec or por at i onmustbes i mi l ari n atl eastonei mpor t antwayr el at edt ot hecor ec ompet ence;andi tmustbedi fficul tf or c ompet i t or st oi mi t at eorfi nds ubst i t ut esf ori t . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 27. I ti snotnecess ar yf oracor ec ompet encet obedi ffic ul tt oi mi t at eort obenons ubs t i t ut abl e. FALSE Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:i tmustenhancec ompet i t i v eadv ant age byc r eat i ngs uper i orc ust omerv al ue;di ffer entbusi nessesi nt hec or por at i onmustbes i mi l ari n atl eastonei mpor t antwayr el at edt ot hecor ec ompet ence;andi tmustbedi fficul tf or c ompet i t or st oi mi t at eorfi nds ubst i t ut esf ori t . AACSB:Anal yt i calThi nki ng 6-31 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 28. I BM l ev er agesi t scompet enci esi ncomput i ngt echnol ogyt opr ovi deheal t hcar es er vi ces .Thi s i sanex ampl eofacor ecompet enc ebei ngusedacr ossdi ssi mi l arbusi nesseswi t hi nt hesame c or por at i on. TRUE Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:i tmustenhancec ompet i t i v eadv ant age byc r eat i ngs uper i orc ust omerv al ue;di ffer entbusi nessesi nt hec or por at i onmustbes i mi l ari n atl eastonei mpor t antwayr el at edt ot hecor ec ompet ence;andi tmustbedi fficul tf or c ompet i t or st oi mi t at eorfi nds ubst i t ut esf ori t .Wi t hWat s on,t heuni quec omput erdev el opedby I BM t hatpr ocessesnat ur all anguage,t heywer eabl et ol ev er aget hei rcomput i ngexper t i s e ( cor ecompet ence)t os ol v ei mpor t antmedi calpr obl emsandt husbecomemedi c alexper t s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 29. Shar i ngact i v i t i esacr ossbusi nessuni t scanpr ov i det wopr i mar ybenefit s :costs avi ngsand c ostenhancement s . FALSE Cor por at i onsal soc anachi eves yner gybyshar i ngact i v i t i esacr osst hei rbusi nessuni t s .Thes e i nc l udev al uecr eat i ngact i v i t i ess uchascommonmanuf act ur i ngf aci l i t i es ,di st r i but i on c hannel s ,ands al esf or ces.Shar i ngact i v i t i esc anpr ovi det wopr i mar ypayoffs:c osts avi ngs andr ev enueenhancement s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 6-32 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 30. St ar bucksacqui r edt hebakerc hai n,LaBoul ange,wi t ht hei nt ent i onofsel l i ngt hebak er y pr oduct sati t scoffeecaf es .Thei nc r easedmar k etex posur ef orLaBoul angei sanex ampl eof ar evenueenhanci ngbenefitt hatc anar i sef r om t hedi ffer ent i at i ons t r at egy . TRUE Of t enanac qui r i ngfi r m andi t st ar getmayac hi ev eahi gherl ev elofsal esgr owt ht oget hert han ei t hercompanycoul doni t sown.Forex ampl e,St ar bucksr ecent l yac qui r edas mal lbak er y c hai n,LaBoul ange,andi nt endst osel lLaBoul angepr oduct satSt ar buckscaf esnat i onal l y .I n l ev er agi ngSt ar bucksnat i onalr et ai lc hai n,LaBoul angewi l lbeabl et odr amat i cal l yexpandi t s mar k etexpos ur eands al esmuchbey ondi t sc ur r ent19s t or eWestCoastmar k et . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 31. Wi t hunr el at eddi v er s i ficat i on,pot ent i albenefi t scanbegai nedf r om v er t i calorhi er ar chi cal r el at i ons hi ps ;t hati s ,t hec r eat i onofs yner gi esf r om t hei nt er act i onoft hecor por at eofficewi t h out si des t akehol der s. FALSE Wi t hunr el at eddi v er s i ficat i on,pot ent i albenefi t scanbegai nedf r om v er t i calorhi er ar chi cal r el at i ons hi ps ;t hati s ,t hec r eat i onofs yner gi esf r om t hei nt er act i onoft hecor por at eofficewi t h t hei ndi vi dualbus i nessuni t s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 32. Rest r uct ur i ngr equi r est hecor por at eofficet ofi ndei t herpoor l yper f or mi ngfi r mswi t hunr eal i z ed pot ent i alorfir msi ni ndust r i esont het hr eshol dofs i gni ficant ,posi t i v ec hange. TRUE Rest r uct ur i ngi sameansbywhi cht hecor por at eofficecanaddv al uet oabusi nes s.Her e,t he c or por at eofficet r i est ofindei t herpoor l yper f or mi ngfir mswi t hunr eal i z edpot ent i alorfir msi n i ndust r i esont het hr eshol dofsi gni ficant ,pos i t i v ec hange.Thepar enti nt er v enes,of t ensel l i ng offpar t soft hebusi ness;c hangi ngt hemanagement ;r educ i ngpayr ol landunnecessar y s our cesofexpenses;c hangi ngst r at egi es;andi nf usi ngt hec ompanywi t hnewt echnol ogi es, pr ocesses ,r ewar ds yst ems,ands of or t h. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-33 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 33. Por t f ol i omanagements houl dbeconsi der edast hepr i mar ybasi sf orf or mul at i ngcor por at el ev els t r at egi es . FALSE Por t f ol i omanagementhel psachi ev eabet t erunder s t andi ngoft hecompet i t i veposi t i onofan ov er al lpor t f ol i oofbus i nesses ,t os uggests t r at egi cal t er nat i v esf oreachoft hebus i ness es,and t oi dent i f ypr i or i t i esf ort heal l ocat i onofr esour ces . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 34. Por t f ol i omanagementmat r i cesgener al l yconsi stoft woax est hatr eflecti ndus t r yormar k et gr owt handt hemar k etshar eofabusi ness . TRUE TheBost onConsul t i ngGr oup( BCG)gr owt hshar emat r i xi samongt hebestknownoft he por t f ol i omanagementt ool s.I nt heBCG appr oach,eac hoft hest r at egi cbusi nessuni t s( SBUs) oft hefi r mi spl ot t edonat wodi mensi onalgr i di nwhi cht heax esar er el at i v emar k ets har eand i ndust r ygr owt hr at e. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :1Eas y Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 35. Theac qui si t i onoft woormor ecount er c y cl i calbusi nessesi sanex ampl eofusi ng di v er si ficat i ont or educer i sk . TRUE Oneoft hepur posesofdi v er s i ficat i oni st or educet her i skt hati si nher enti nt hev ar i abi l i t yi n r ev enuesandpr ofit sofafir m ov ert i me.I fafir m ent er snewpr oduct sormar k et st hatar e affect eddi ffer ent l ybyseas onalorec onomi cc y cl es ,i t sper f or manceov ert i mewi l lbemor e s t abl e.Forex ampl e,afir mt hatmanuf act ur esl awnmower smaydi ver si f yi nt os nowbl ower si n or dert oev enouti t sannuals al es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-34 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 36. LoewsCor por at i on,acongl omer at ewi t h15bi l l i onUSDi nr ev enues ,compet esac r osssev er al i ndust r i esi ncl udi ngoi l andgas,t obacco,wat c hes ,i nsur ance,andhot el s.I t sr el at ed di v er si ficat i onst r at egyi st obuyl owandsel l hi ghasi nt heex ampl ewher et heyboughtsi xoi l t ank er sf or5mi l l i onUSDandt hens ol dt hem ei ghty ear sl at erf or50mi l l i onUSD. FALSE Wi t hunr el at eddi v er s i ficat i on,f ewbenefit sar eder i v edf r om hor i z ont alr el at i onshi ps( t he l ev er agi ngofc or ecompet enci esort hes har i ngofact i vi t i esac r os sbusi nessuni t swi t hi na c or por at i on) .I nst ead,pot ent i albenefit scanbegai nedf r om v er t i cal( orhi er ar chi cal ) r el at i ons hi psi nwhi c hs y ner gi esar ec r eat edf r om t hei nt er act i onoft hec or por at eofficewi t ht he i ndi vi dualbus i nessuni t s.Ther ear et womai nsour cesofsuchs yner gi es.Fi r st ,t hecor por at e offic ecanc ont r i but et opar ent i ngandr es t r uct ur i ngof( of t enacqui r ed)busi nesses .Second,t he c or por at eofficecanaddv al uebyv i ewi ngt heent i r ecor por at i onasaf ami l yorpor t f ol i oof busi nessesandal l ocat i ngr esour cest oopt i mi z ecor por at egoal sofpr ofit abi l i t y ,cashfl ow,and gr owt h. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 37. Di v er s i fiedpubl i ccor por at i ons,s uchasBer ks hi r eHat hawayandVi r gi nGr oup,cr eat ev al ue t hr oughmanagementexper t i s ebyi mpr ov i ngpl ansandbudget s .Thi si sanex ampl eofa r el at eddi v er si ficat i onst r at egy . FALSE Oneoft hepur posesofdi v er s i ficat i oni st or educet her i skt hati si nher enti nt hev ar i abi l i t yi n r ev enuesandpr ofit sofafir m ov ert i me.I fafir m ent er snewpr oduct sormar k et st hatar e affect eddi ffer ent l ybyseas onalorec onomi cc y cl es ,i t sper f or manceov ert i mewi l lbemor e s t abl e.Forex ampl e,afir mt hatmanuf act ur esl awnmower smaydi ver si f yi nt os nowbl ower si n or dert oev enouti t sannuals al es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 38. Por t f ol i omodel ssuc hast heBCG Por t f ol i omat r i xar el i mi t edi nv al uebecaus et heyonl y c ompar et heSBUonf ourdi mensi ons. FALSE Des pi t et hepot ent i albenefit sofpor t f ol i omodel s ,t her ear eal sos omenot abl edowns i des . Fi r st ,t heyc ompar eSBUsononl yt wodi mensi ons ,maki ngt hei mpl i ci tbuter r oneous as sumpt i ont hat( 1)t hosear et heonl yf act or st hatr eal l ymat t erand( 2)ev er yuni tcanbe acc ur at el ycompar edont hatbasi s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on 6-35 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 39. I nanal y zi ngt heCabotCor por at i onpor t f ol i ous i ngt heBDG mat r i x ,t hecompanydeci dedt o s hi f tawayf r om i t scor ecompet enc et ounr el at edar easofi t sbusi ness .Theensui ngdecl i nei n as set si ndi cat edt hati tneededt or et ur nt oi t scor ec ompet encei nor dert ogr ow. TRUE CabotCor por at i ons uppl i esc ar bonbl ackf ort her ubber ,el ect r oni cs ,andpl ast i csi ndust r i es . Fol l owi ngt heBCG mat r i x ,Cabotmov edawayf r om i t scashc ow,car bonbl ack,anddi v er s i fi ed i nt os t ar ss uchascer ami csandsemi conduct or si naseemi ngl yov er aggr es si v eeffor tt ocr eat e mor er ev enuegr owt hf ort hec or por at i on.Thecompanyr et ur nonasset sdecl i nedast hefi r m s hi f t edawayf r om i t scor ecompet encet ounr el at edar eas.Thepor t f ol i omodelf ai l edbecause i tpoi nt edt hecompanyi nt hewr ongdi r ect i on( awayf r om i t scor ebusi ness )i naneffor tt ospur gr owt h.Rec ogni z i ngi t smi st ak e,CabotCor por at i onr et ur nedt oi t smai nst aycar bonbl ack manuf act ur i nganddi v est edunr el at edbus i nesses .Todayt hecompanyi sal eaderi ni t sfiel d wi t h3. 6bi l l i onUSDi nr ev enuesi n2014. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 40. Ri skr educt i onbyi t sel fi susual l yameanst ocr eat eshar ehol derval ue,r egar dl es soft he ov er al ldi v er si ficat i onst r at egyoft hefi r m. FALSE Ri skr educt i oni nandofi t s el fi sr ar el yvi abl easameanst oc r eat es har ehol derv al ue.I tmust beunder t ak enwi t havi ewoft heov er al ldi v er si ficat i onst r at egyoft hefi r m. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 41. Anadv ant ageofmer ger sandacqui s i t i onsi st hatt heycanenabl eafir mt or api dl yent ernew pr oductmar k et s . TRUE Gr owt ht hr oughmer ger sandac qui s i t i onshasbeenc r i t i c alt omanycor por at i onsi nawi de v ar i et yofhi ght ec hnol ogyandk nowl edgei nt ens i vei ndust r i es.Speed( s peedt omar ket ,s peed t oposi t i oni ng,ands peedt obecomi ngav i abl ecompany)i scr i t i cali nsuchi ndust r i es .For ex ampl e,i n2010,Appl eacqui r edSi r iI nc.sot hatt heyc oul dqui ck l yf ul l yi nt egr at et heSi r i nat ur all anguagev oi cer ecogni t i ons of t war ei nt oi OS,t heAppl epr opr i et ar yoper at i ngs y st em. AACSB:Anal yt i calThi nki ng 6-36 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 42. Amongt headv ant agesofacqui s i t i onsar et heexpensi v epr emi umst hatar ef r equent l ypai dt o acqui r eabusi ness . FALSE Ther ear emanypot ent i aldr awbacksorl i mi t at i onst omer geract i v i t y .Forex ampl e,t het ak eover pr emi um t hati spai df oranacqui si t i ont ypi cal l yi sv er yhi gh.Twot i mesoutoft hr ee,t hes t ock pr i ceoft heac qui r i ngc ompanyf al l soncet hedeali smadepubl i c .Si ncet heacqui r i ngfir m of t enpaysa30per centorhi gherpr emi um f ort het ar getc ompany ,t heacqui r ermustcr eat e s yner gi esandscal eeconomi est hatr esul ti ns al esandmar k etgai nsex ceedi ngt hepr emi um pr i ce. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 43. Thr oughj oi ntv ent ur es,fi r mscandi r ect l yac qui r et heas set sandcompet enci esofot herfi r ms . FALSE J oi ntv ent ur esr epr es entaspec i alcaseofal l i ances ,wher ei nt wo( ormor e)fir mscont r i but e equi t yt of or m anewl egalent i t y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 44. Thepot ent i aladv ant agesofst r at egi cal l i ancesandj oi ntv ent ur esi ncl udeent er i ngnew mar k et s aswel lasdev el opi nganddi ffusi ngnewt echnol ogi es. TRUE St r at egi cal l i ancesandj oi ntv ent ur eshav emanypot ent i aladv ant ages .Amongt hesear e ent er i ngnewmar ket s ,r educ i ngmanuf act ur i ng( orot her )cos t si nt hev al uec hai n,and dev el opi nganddi ffusi ngnewt echnol ogi es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-37 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 45. Oneoft heobl i gat or yas pect sofst r at egi cal l i ancesi st hedependenceonwr i t t encont r act st o del i mi tr espons i bi l i t i esandenf or cecompl i ance. FALSE Ast r at egi cal l i ancei sac ooper at i v er el at i onshi pbet weent wo( ormor e)fir ms.Al l i ancesmaybe ei t heri nf or malorf or mal ,onei nv ol vi ngawr i t t encont r act . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 46. Anadv ant ageofafir m ent er i ngi nt oast r at egi cal l i ancei st hati tdoesnothav et os har et he weal t hwi t hi t spar t ner s . FALSE Fi r mst hatengagei ni nt er naldevel opment( l i k ecor por at eent r epr eneur s hi p)c apt ur et hev al ue c r eat edbyt hei rowni nnov at i v eact i vi t i eswi t houthavi ngt oshar et heweal t hwi t hal l i ance par t ner sorf acet hedi fficul t i esass oci at edwi t hcombi ni ngact i vi t i esac r osst hev al uec hai nsof s ev er alfi r msormer gi ngcor por at ec ul t ur es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 47. Anadv ant ageofi nt er naldev el opmenti st hatfir msdonothavet oc ombi neact i v i t i esacr osst he v al uechai nsofmanycompani esandmer gec ompanycul t ur es. TRUE Fi r mst hatengagei ni nt er naldevel opment( l i k ecor por at eent r epr eneur s hi p)c apt ur et hev al ue c r eat edbyt hei rowni nnov at i v eact i vi t i eswi t houthavi ngt oshar et heweal t hwi t hal l i ance par t ner sorf acet hedi fficul t i esass oci at edwi t hcombi ni ngact i vi t i esac r osst hev al uec hai nsof s ev er alfi r msormer gi ngcor por at ec ul t ur es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-38 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 48. Di v est menti susef ult ohel pafir mr ev er s eanear l i erac qui si t i ont hatdi dnotr es ul ti n s uccessf ulgr owt h. TRUE Di v est ment s ,t heex i tofabus i nessf r om t hec ompanypor t f ol i o,ar equi t ecommon.Onest udy f oundt hatl ar ge,pr es t i gi ousU. S.compani esdi v est edmor eacqui si t i onst hant heyk ept . Di v est i ngabusi nesscanaccompl i shmanydi ffer entobj ect i v es .I tcanbeusedt ohel pafir m r ev er s eanear l i eracqui si t i ont hatdi dnotwor koutaspl anned. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 49. Zar a,aSpani shc l ot hi ngcompany ,oper at ess t or esi nov er70c ount r i es .Whenent er i ng mar k et sv er ydi s t antf r om i t shomemar k et s ,Zar ar ar el yus esl ocalal l i ancepar t ner st ohel pi t negot i at et hedi ffer entcul t ur alandr egul at or yenvi r onment s . FALSE Zar a,aSpani shc l ot hi ngcompany ,oper at ess t or esi nov er70c ount r i es .St i l l ,whenent er i ng mar k et sv er ydi s t antf r om i t shomemar k et s ,Zar aof t enus esl oc alal l i ancepar t ner st ohel pi t negot i at et hedi ffer entcul t ur alandr egul at or yenvi r onment s .Ent er i ngnewmar k et sr equi r es fi nanci alr es our ces,r equi si t emar k etexper t i s et ounder s t andl ocalcus t omerneeds,k now how t opr omot et hepr oduct ,andaccesst ot hepr operdi st r i but i onc hannel s .Thesear er eas onst hat acompanyi sl i k el yt ousel ocalal l i ancepar t ner swheni tfir s tent er sanewmar k etdi st antf r om i t sown. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 50. Compar edt omer ger sandac qui si t i ons ,fi r mst hatengagei ni nt er naldev el opmentcapt ur et he v al uecr eat edbyt hei rowni nnov at i v eact i vi t i esbynothav i ngt os har et heweal t hwi t hal l i ance par t ner sorf acet hedi fficul t i esass oci at edwi t hcombi ni ngact i vi t i esac r osst hev al uec hai nsof s ev er alfi r msormer gi ngcor por at ec ul t ur es. TRUE Compar edt omer ger sandac qui si t i ons ,fi r mst hatengagei ni nt er naldev el opmentcapt ur et he v al uecr eat edbyt hei rowni nnov at i v eact i vi t i eswi t houthavi ngt oshar et heweal t hwi t hal l i ance par t ner sorf acet hedi fficul t i esass oci at edwi t hcombi ni ngact i vi t i esac r osst hev al uec hai nsof s ev er alfi r msormer gi ngcor por at ec ul t ur es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um 6-39 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 51. I nr ecenty ear s,manyhi ght echfir mssuc hasPr i cel i ne. com haves uffer edf r om t henegat i v e i mpactofuncont r ol l edgr owt h. TRUE I nr ecenty ear smanyhi ght echfi r mshav es uffer edf r om t henegat i v ei mpactoft hei r uncont r ol l edgr owt h.Cons i der ,f orex ampl e,Pr i cel i ne. com madeani l l f at edv ent ur ei nt oan onl i neser vi cet ooffergr ocer i esandgas ol i ne.Amyr i adofpr obl ems,per hapsmos ti mpor t ant l y al ackofpar t i c i pat i onbymanuf act ur er s,c aus edt hefir mt ol osemor et han5mi l l i onUSDa weekpr i ort oabandoni ngt hes ev ent ur es. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 52. Gr eenmai li sanofferbyacompany ,t hr eat enedbyt akeov er ,t oofferi t ss t ockatar educed pr i cet oat hi r dpar t y . FALSE Gr eenmai li saneffor tbyt het ar getfir mt opr ev entani mpendi ngt ak eov er .Whenahos t i l efi r m buy sal ar gebl ockofout s t andi ngt ar getcompanyst ockandt het ar getc ompanymanagement f eel st hatat enderofferi si mpendi ng,t heyoffert obuyt hes t ockbackf r om t hehost i l e c ompanyatahi gherpr i c et hant heunf r i endl ycompanypai df ori t . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :1Eas y Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 53. Agol denpar achut ei sapr ear r angedcont r actwi t hmanager ss peci f yi ngt hat ,i nt heev entofa host i l et ak eov er ,t het ar getc ompanymanager swi l lbepai das i gni ficants ev er ancepackage. TRUE Agol denpar achut ei sapr ear r angedcont r actwi t hmanager ss peci f yi ngt hat ,i nt heev entofa host i l et ak eov er ,t het ar getc ompanymanager swi l lbepai das i gni ficants ev er ancepackage. Al t hought opmanager sl oset hei rj obs ,t hegol denpar ac hut epr ov i si onspr ot ectt hei ri ncome. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-40 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 54. Unf r i endl yorhost i l et ak eov er sal waysoccurwhent hes t ockoft hec ompanybecomes under v al ued. FALSE Unf r i endl yorhost i l et ak eov er sc anoccurwhent hes t ockoft hec ompanybecomes under v al ued.Ther i ski st hatl eader s hi pengagesi nant i t akeov ert act i cst opr es er v et hei r weal t horpower . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 55. For merMer r i l lL ync hCEO JohnThai ngav eout4bi l l i onUSDi ndi scr et i onar yy ear end bonusesj ustbef or et hecompanywasr escuedbyBankofAmer i ca.Thi spr act i ce demonst r at esmanager i algr eed. TRUE Aheal t hyegohel psmak eal eaderconfi dent ,cl ear headed,andabl et oc opewi t hc hange. CEOs,byt hei rv er ynat ur e,ar ei nt ensel yc ompet i t i v epeopl ei nt heofficeaswel lasont he t enni scour torgol fcour se.Butsomet i meswhenpr i dei sats t ak e,i ndi vi dual swi l lgot ogr eat l engt hst owi n.Fewex ec ut i v esar eex emptf r om t hepot ent i aldownsi deofex ces si v eegosand gr eed. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 56. Poi sonpi l l sar eusedbyacompanyt ot ak eaways har ehol derr i ght si nt heev entofat ak eov er byanot herfi r m. FALSE Poi sonpi l l sar eusedbyacompanyt ogi v eshar ehol der scer t ai nr i ght si nt heev entofa t ak eoverbyanot herfi r m.Theyar eal soknownass har ehol derr i ght spl ans. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-41 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 57. Ant i t ak eoverdef ensesar eal way samanagementpl oyt opr ot ectt hei rowns el fi nt er est s . FALSE Ant i t ak eoverdef ensesr epr esentagr ayar ea,becaus emanagementcanof t enl egi t i mat el y ar guet hatsuchact i onsar enott her es ol el yt obenefitt hemsel ves.Rat her ,t heycanbenefit ot hers t akehol der s,s uchasempl oy ees,c ust omer s ,andt hecommuni t y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 58. WhenOr acl el aunchedahost i l ebi df orPeopl eSof ti n2003,CEO Lar r yEl l i sonaccused Peopl eSof tofl aunchi ngapoi s onpi l lc ampai gn.Theout c omeoft hebi t t erfightwasabet t er fi nanci alr ewar df orPeopl eSof ts har ehol der s . TRUE I nDecember2004,Or acl es t r uckadealt obuyPeopl eSof t ,endi ngabi t t er18mont hhos t i l e t ak eoverbat t l e.TheOr acl e10. 3bi l l i onUSDac qui si t i onv al uedt hefi r m at26. 50USDas har e, whi c hwasani ncr easeof66per centov eri t si ni t i alofferof16USDas har e. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 59. Poi sonpi l l sal waysar eus edt opr ot ectt hebesti nt er est sofmanagement . FALSE Onmor algr ounds ,s omeant i t ak eov erdef ensesar enotunder t ak ent oent r enchandpr ot ect management ,butof t ent heyar e.Whens uchdef ensesar eus edsi mpl yt ok eepmanagement i npower ,t heyar ewr ong.Howev er ,whent heyar eusedt odef endt hel ongt er m financi al heal t hoft hecompanyandt opr ot ectbr oaderst ak ehol deri nt er est s ,t heywi l lbemor al l y per mi ssi bl e. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-42 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 60. Manager i albehavi or st hater odes har ehol derr et ur nsi ncl udeegot i sm,ant i t ak eov ert act i csand c ont r ol l edgr owt h. FALSE Somemanager i albehavi or smayser v et oer odeshar ehol derr et ur ns .Amongt hesear egr owt h f ort hes ak eofgr owt h,egot i s m,andant i t ak eovert act i cs . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :2Medi um Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on Multiple Choice Questions 61. TheCi scoac qui si t i onofPur eDi gi t alTechnol ogi es,t hepar entoft heFl i pvi deocamer a,f ai l ed because A.Ci s cohadv al uabl e compet enci es. B.t heFl i pdi vi si onofCi scowassl owandl es sr es ponsi v et omar k et pr essur es . C.consumer scont i nuedt opur chaset he camer a. D.Ci scohadgoodv i si onoft he mar k et . I nl ar ge,wi del ydi v er s i fiedfir ms,deci si onmaki ngcanbecomesl ow andr emot et omar k et c ondi t i ons .Ci scoc ompet esi nawi der angeofmar k et sandhadnear l y60deci si onmaki ng gr oupsi ni t ss t r uct ur e,wi t hsev er all ay er ss epar at i ngJohnChamber s ,t heCEO ofCi s co,f r om t hei ndi vi dualmar k et s .I ns uchal ar geanddi v er s i fiedfir m,t hedeci si onmaki ngi nasmal l di vi si onwi t honl y400mi l l i onUSDi nsal es ,1per centoft heov er al lsal esofCi s co,wasnott he t oppr i or i t yofcor por at emanager s .St ephenBak er ,ananal y s twi t hNPDGr oup,s ai dt hatCi s co wasnev err eal l yc ommi t t edt ot hepr oduct .Asar esul t ,Fl i pwass l owerandl es sr es ponsi v et o mar k etpr essur est hani twaswheni twasanent r epr eneur i alfi r m. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-43 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 62. Whi choft hef ol l owi ngi snotar easonf ormer gerandac qui si t i onf ai l ur es ? A.Theacqui r i ngc ompanypay sapr emi um f ort hecommons t ockoft het ar get c ompany . B.Topex ecut i v esacti nt hei rbesti nt er est sr at hert hant hos eoft he s har ehol der s. C.Theacqui r edcompanyasset sar epoor l yi nt egr at edi nt ot heacqui r i ngcompany busi nessl i nes. D.Theacqui si t i onl eadst ov al ue c r eat i on. Resear chs howst hatt hev astmaj or i t yofac qui si t i onsr es ul ti nv al uedes t r uct i onr at hert han v al uecr eat i on.Manyl ar gemul t i nat i onalfir mshav eal s of ai l edt oeffect i v el yi nt egr at et hei r acqui si t i ons ,pai dt oohi ghapr emi um f ort hecommons t ockoft het ar getcompany ,orwer e unabl et ounder s t andhowt heass et soft heacqui r edfi r m woul dfitwi t ht hei rownl i nesof busi ness .Att i mes ,t opex ecut i v esmaynothav eact edi nt hebesti nt er est sofshar ehol der s. Themot i v ef ort heacqui si t i onmayhav ebeent oenhancet hepowerandpr est i geoft he ex ecut i v er at hert hant oi mpr ov es har ehol derr et ur ns . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 63. Cor por at el ev els t r at egyf ocuseson A.gai ni ngl ongt er m r ev enue. B. gai ni ngs hor t t er m pr ofi t s. C.dec r easi ngbusi ness l oc at i ons . D.managi ngi nvest mentbank er sandt hei r i nt er est s . Cor por at el ev els t r at egyf ocusesongai ni ngl ongt er mr ev enue,pr ofit s ,andmar k etv al ue t hr oughmanagi ngoper at i onsi nmul t i pl ebusi nesses. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-44 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 64. Anac qui si t i ont hatr es ul t si n______________i ndi cat est hatexpect at i onswer enotmet . A.expansi o n B.di v es t i t ur e C.cost s avi ngs D.i ncr eased s al es Manyacqui si t i onsul t i mat el yr esul ti ndi v es t i t ur e,whi chi sanadmi s si ont hatt hi ngsdi dnotwor k outaspl anned.I nf act ,s omey ear sago,awr i t erf orFor t unemagaz i nel ament edt hatst udi es s how 33per centt o50per centofac qui si t i onsar el at erdi v est ed,gi vi ngcor por at emar r i agesa di v or cer at er oughl ycompar abl et ot hatofmenandwomen. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 65. I n2012,Mi cr osof tadmi t t edt oamaj or_________mi st akewheni twr ot eoffessent i al l yt he ent i r e6. 2bi l l i onUSDi tpai df oradi gi t aladv er t i si ngfir m,aQuant i ve,t hati tpur chas edi n2007. A.expansi o n B.di v est i t ur e C.cost s avi ngs D.ac qui si t i o n I n2012,Mi cr osof tadmi t t edt oamaj oracqui si t i onmi st ak ewheni twr ot eoffessent i al l yt he ent i r e6. 2bi l l i onUSDi tpai df oradi gi t aladv er t i si ngfir m,aQuant i ve,t hati tpur chas edi n2007. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-45 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 66. I famul t i nat i onalfi r mi sunabl et ounder s t andhowt heac qui r edcompany' sasset swoul dfit wi t ht hei rownl i nesofbusi ness,t hi scanl eadt o A.expansi o n. B.di v es t i t ur e. C.cost s avi ngs. D.ac qui si t i o n. Resear chs howst hatamaj or i t yofacqui si t i onsofpubl i cc or por at i onsr esul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on.Manyl ar gemul t i nat i onalfir mshaveal sof ai l edt o effect i v el yi nt egr at et hei racqui si t i ons,pai dt oohi ghapr emi um f ort hecommons t ockoft he c ompany ,orwer eunabl et ounder st andhow t heasset soft heac qui r edfir m woul dfi twi t ht hei r ownl i nesofbusi ness . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 67. I famul t i nat i onalfi r m pai dt oohi ghapr emi um f ort hecommons t ockoft hec ompany ,t hi scan l eadt o A.expansi o n. B.cost s avi ngs. C.di v es t i t ur e. D.ac qui si t i o n. Resear chs howst hatamaj or i t yofacqui si t i onsofpubl i cc or por at i onsr esul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on.Manyl ar gemul t i nat i onalfir mshaveal sof ai l edt o effect i v el yi nt egr at et hei racqui si t i ons,pai dt oohi ghapr emi um f ort hecommons t ockoft he c ompany ,orwer eunabl et ounder st andhow t heasset soft heac qui r edfir m woul dfi twi t ht hei r ownl i nesofbusi ness . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-46 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 68. I famul t i nat i onalc ompany' smot i vef ort heacqui si t i onmayhav ebeent oenhanceex ecut i v e power sandpr est i ger at hert hant oi mpr ov es har ehol derr et ur n,t hi sc anl eadt o A.di v es t i t ur e. B.cost s avi ngs. C.expans i o n. D.ac qui si t i o n. Resear chs howst hatamaj or i t yofacqui si t i onsofpubl i cc or por at i onsr esul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on.Topex ecut i v esmaynothav eact edi nt hebesti nt er est s ofs har ehol der s.Thati s ,t hemot i v ef ort heac qui si t i onmayhav ebeent oenhanceex ecut i v e power sandpr est i ger at hert hant oi mpr ov es har ehol derr et ur ns . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 69. I famul t i nat i onalfi r mf ai l st oeffect i v el yi nt egr at et hei racqui si t i ons,t hi sc anr esul ti n A.cost s avi ngs. B.di v es t i t ur e. C.expans i o n. D.f ur t her ac qui si t i on. Resear chs howst hatamaj or i t yofacqui si t i onsofpubl i cc or por at i onsr esul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on.Manyl ar gemul t i nat i onalfir mshaveal sof ai l edt o effect i v el yi nt egr at et hei racqui si t i ons,pai dt oohi ghapr emi um f ort hecommons t ockoft he c ompany ,orwer eunabl et ounder st andhow t heasset soft heac qui r edfir m woul dfi twi t ht hei r ownl i nesofbusi ness . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 6-47 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 70. Oneoft her easonsi ti ss ai dt hatonl yt hei nv est mentbank erwi nswhenacompanyi sacqui r ed i st hatt hey A.assur et henewl yac qui r edcompanywi l lbe s ucces sf ul . B.cont i nuet owor kwi t ht het woc ompani es i nv ol v ed. C.col l ecthugeupf r ontf eesr egar dl essoft heout come af t er war ds . D.moni t ort hepr ogr essofbot hcompani esf orl ongt er m gr owt h. Resear chs howst hatamaj or i t yofacqui si t i onsofpubl i cc or por at i onsr esul ti nv al ue dest r uct i onr at hert hanv al uecr eat i on.Att i mes ,t heonl yot herpeopl ewhomayhav ebenefi t ed wer et heshar ehol der soft heacqui r edfi r msort hei nv es t mentbank er swhoadvi set he acqui r i ngfir m,becaus et heycol l ecthugef eesupf r ontr egar dl essofwhathappensaf t er war d. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0601Ther easonsf ort hef ai l ur eofmanydi v er si fi cat i oneffor t s . Lev el ofDi fficul t y :2Medi um Topi c :TheReas onsf ort heFai l ur eofManyDi v er s i fic at i onEffor t s 71. Di v er s i ficat i oni ni t i at i v esi ncl udeal l oft hef ol l owi ngex cept A.mer ger sand ac qui si t i ons . B.st r at egi c al l i ances. C.s har ehol der dev el opment . D.j oi nt v ent ur es . Di v er s i ficat i oni ni t i at i v es,whet hert hr oughmer ger sandac qui si t i ons,s t r at egi cal l i ancesand j oi ntv ent ur es ,ori nt er naldev el opment ,mus tbej ust i fiedbyt hecr eat i onofv al uef or s har ehol der s. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-48 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 72. Pol ar i s ,amanuf act ur erofsnowmobi l es ,mot or c yc l es,wat er cr af t ,andoffr oadv ehi cl es ,s har es manuf act ur i ngoper at i onsac r ossi t sbusi nesses.I tal s ohasac or por at er esear chand dev el opmentf aci l i t yands t affdepar t ment st hatsuppor tal l oft hePol ar i soper at i ngdi vi si ons . Thi si sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oacqui r emar k etval uebyl ev er agi ngcor e compet enci es. B.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopeby s har i ng. C.unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.r el at eddi v er s i fi cat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfi nanci als y ner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. I nt hi scase,Pol ar i susesr el at eddi v er si ficat i ont ocr eat ev al uebys har i ngact i v i t i esi nor dert o c r eat eec onomi esofscope. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 73. ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err awmat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputt oi t smanuf act ur i ngpr ocess .Thi si s anex ampl eofusi ng A.r el at eddi v er si ficat i ont oacqui r emar k etpowerbypool i ngnegot i at i ng power . B.r el at eddi v er si ficat i ont oacqui r eec onomi esofscopebyl ev er agi ngcor e compet enci es. C.r el at eddi v er si ficat i ont oac qui r eeconomi esofs copebyi nt egr at i ngv er t i cal l yi nor dert o acqui r emar k etpower . D.r el at eddi v er s i ficat i ont oacqui r emar k etpowerbyi nt egr at i ng v er t i cal l y . I nt hi scase,ShawI ndust r i esus esr el at eddi v er s i ficat i ont oachi ev ev al uebyi nt egr at i ng v er t i cal l yi nor dert oacqui r emar k etpower . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-49 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 74. AtCooperI ndust r i es,t her ear ef ewsi mi l ar i t i esi nt hepr oduct si tmak esort hei ndust r i esi n whi c hi tc ompl et es.Thecor por at eofficeaddsv al uet hr oughsuchact i vi t i esass uper bhuman r esour cepr act i cesandbudget i ngs y st ems .Thi si sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er si ficat i ont oacqui r emar ketpowerbyl ev er agi ngc or e compet enci es. C.unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er s i ficat i ont oacqui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. I nt hi scase,t hecor por at eofficeofCooperI ndust r i esaddsv al uet oi t sac qui r ed,unr el at ed busi nessesbyper f or mi ngs uchact i vi t i esasaudi t i ngt hei rmanuf act ur i ngoper at i ons ,i mpr ovi ng t hei raccount i ngact i vi t i es,andcent r al i z i nguni onnegot i at i ons.Thepr i mar ypot ent i albenefit s oft hi sunr el at eddi v er s i ficat i onst r at egyar eder i v edl ar gel yf r om hi er ar c hi calr el at i onshi ps;t hat i s ,v al uecr eat i onder i v edf r om t hecor por at eoffice. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 75. Nov ar t i s,f or mer l yCi baGei gy ,usespor t f ol i omanagementt oi mpr ov emanyk eyact i v i t i es , i nc l udi ngr esour ceal l ocat i onandr ewar dandev al uat i ons ys t ems .Thi si sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oac hi ev ev al uebyl ev er agi ngpool ednegot i at i ngpowert oat t ai n economi esofscope. B.r el at eddi v er si ficat i ont oacqui r emar ketpowerbyl ev er agi ngpool ednegot i at i ng power . C.unr el at eddi v er s i ficat i ont oacqui r efi nanci als yner gi est hr oughpor t f ol i o management . D.r el at eddi v er s i fi cat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfi nanci als y ner gi est hr ough c or por at er es t r uct ur i ngandpar ent i ng. Acor por at i onmaydi v er si f yi nt ounr el at edbus i nesses .Nov ar t i shasf ol l owedasuc cessf ul s t r at egyofunr el at eddi v er si fi cat i on.Her e,t hepr i mar ypot ent i albenefit sar eder i v edl ar gel y f r om hi er ar c hi calr el at i onshi ps ,t hati s,v al uecr eat i onder i v edf r om t hecor por at eoffice. Ex ampl esoft hel at t erwoul di nc l udel ev er agi ngs omeoft hesuppor tact i vi t i esi nt hev al ue c hai n.Unr el at eddi v er si fier sof t enbenefitf r om t hebestpr act i cesofsi st erbusi ness es,ev en t hought hei rpr oduct s ,mar k et s ,andt echnol ogi esmaydi fferdr amat i cal l y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-50 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 76. 3M l ev er agesi t scompet enci esi nadhesi v est ec hnol ogi est omanyi ndus t r i es ,i ncl udi ng aut omot i v e,c onst r uct i on,andt el ecommuni c at i ons.Thi si sanex ampl eofusi ng A.r el at eddi v er si ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngcor e compet enci es. C.unr el at eddi v er si ficat i ont ofinanc i als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er s i ficat i ont opar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough r est r uct ur i ngandpar ent i ng. Fi r msmaydi v er si f yi nt or el at edbus i nesses .Her e,t hepr i mar ypot ent i albenefit st obeder i v ed c omef r om hor i z ont alr el at i onshi ps ,t hati s,busi nes sess har i ngi nt angi bl er esour ces( e. g. ,c or e c ompet enci ess uchasmar k et i ng)andt angi bl er esour ces( e. g. ,pr oduct i onf aci l i t i es, di s t r i but i onc hannel s) .I nt hi scas eEM l ev er agesi t scor ec ompet enci esi nadhesi v es t ec hnol ogi esi nmanyi ndust r i esi nor dert oat t ai nec onomi esofscope. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 77. Manyl eadi nghi ght ec hfir mss uchasGoogl e,Appl e,andI nt elhav edr amat i cal l yenhanced t hei rr ev enues ,pr ofit s ,andmar k etv al uest hr oughawi dev ar i et yofdi v er s i ficat i oni ni t i at i v es. Whi choft hef ol l owi ngi snotsuchani ni t i at i v e ? A.acqui si t i on s B.st r at egi c al l i ances C.s t oc khol der enhancement D.j oi nt v ent ur es Manyl eadi nghi ght ec hfir mss uchasGoogl e,Appl e,andI nt elhav edr amat i cal l yenhanced t hei rr ev enues ,pr ofit s ,andmar k etv al uest hr oughawi dev ar i et yofdi v er s i ficat i oni ni t i at i v es, i nc l udi ngac qui si t i ons,s t r at egi cal l i ances,andj oi ntv ent ur es ,aswel lasi nt er naldev el opment . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-51 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 78. Fi r mshav esev er alchoi cesofdi v er si ficat i oni ni t i at i v est hatc anbeus edt ocr eat ev al ue.Whi ch oft hef ol l owi ngi snotoneoft hem? A.us i ngr el at eddi v er si fi cat i ont oacqui r eeconomi esofscopel ev er agi ngpool ed negot i at i ngpower B.usi ngr el at eddi v er si ficat i ont oac qui r emar k etpowerbyl ev er agi ngc or e c ompet enci es C.usi ngunr el at eddi v er s i ficat i ont oac qui r efinanci als y ner gi est hr oughpor t f ol i o management D.usi ngr el at eddi v er si ficat i ont oac qui r epar ent i ng,r est r uct ur i ng,andfi nanci als yner gi es t hr oughc or por at er est r uct ur i ngandpar ent i ng Theycanuseunr el at eddi ver si ficat i ont oacqui r epar ent i ng,r es t r uct ur i ng,andfinanc i al s yner gi est hr oughc or por at er est r uct ur i ngandpar ent i ng. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 79. ConAgr a,adi v er si fiedf oodpr oducer ,i ncr easesi t spowerov ers uppl i er sbyc ent r al l y pur c hasi nghugequant i t i esofpackagi ngmat er i al sf oral lofi t sf ooddi vi s i ons .Thi si san ex ampl eofusi ng A.r el at eddi v er s i ficat i ont oacqui r eeconomi esofscopebyl ev er agi ngpool ed negot i at i ngpower . B.r el at eddi v er si ficat i ont oacqui r emar ketpowerbyl ev er agi ngpool ednegot i at i ng power . C.unr el at eddi v er si ficat i ont oacqui r efinanci als yner gi est hr oughpor t f ol i o management . D.unr el at eddi v er s i ficat i ont oacqui r epar ent i ng,r est r uct ur i ng,andfinanci als yner gi est hr ough r est r uct ur i ngandpar ent i ng. ConAgr ausespool ednegot i at i ngpowert oenhancemar k etpower .Theydot hi st oi ncr ease t hei rpowerov ersuppl i er sbycent r al l ypur chas i nghugequant i t i esofpackagi ngmat er i al sf or al lofi t sf ooddi vi s i ons. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 6-52 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 80. Pr oc t orandGambl ei sal ar gemul t i nat i onalor gani z at i ont hathasmanybusi nessshar i ng di s t r i but i onr esour ces .Di v er si ficat i onst r at egi est ak eadv ant ageoft he__________t hatexi sti n t hei ror gani z at i on. A.cost s B.empl oy ee s C.s yner gi e s D.di sc ont i nui t i e s Whyshoul dc ompani esev enbot herwi t hdi v er s i ficat i oni ni t i at i v es ?Theans wer ,i nawor d,i s s yner gy,der i v edf r om t heGr eekwor ds yner gos ,whi chmeanswor ki ngt oget her .Fi r mscan al s oenhancet hei rmar k etpowervi apool ednegot i at i ngpowerandv er t i cali nt egr at i on.For ex ampl e,Pr oct erandGambl eenj oysmanys yner gi esf r om havi ngbusi nessest hats har e di s t r i but i onr esour ces . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0602How manager sc ancr eat ev al uet hr oughdi v er s i fic at i oni ni t i at i v es . Lev el ofDi fficul t y :2Medi um Topi c :Mak i ngDi v er s i fic at i onWor k :AnOv er v i ew 81. Casi o,agi antel ect r oni cpr oduct spr oducer ,s y nt hesi z esi tabi l i t i esi nmi ni at ur i z at i on, mi cr opr ocessordesi gn,mat er i als ci ence,andul t r at hi npr eci si onc ast i ngst opr oducedi gi t al wat c hes .I tusest hes ameski l l st opr oducec ar dcal cul at or s ,di gi t alcamer as,andot hers mal l el ect r oni cs .Thes ecol l ect i v es ki l l sar ek nownas A.cor e compet enci es. B.st r at egi c r esour ces. C.shar ed act i v i t i es. D.ec onomi esof s cope. Cor ec ompet enci esr efl ectt hecol l ect i v el ear ni ngi nor gani z at i ons,whi c hi showt ocoor di nat e di v er sepr oduct i ons ki l l s,i nt egr at emul t i pl es t r eamsoft echnol ogi es,andmar k etdi v er s e pr oduct sands er v i ces.I ns omec i r cumst ances,acor ec ompet encecanc r eat ev al ueand pr ovi deav i abl ebasi sf ors y ner gyamongt hebusi nessesi nac or por at i on.Casi o,agi ant el ect r oni cpr oduct spr oduc er ,s ynt hesi z esi t sabi l i t i esi nmi ni at ur i z at i on,mi cr opr ocessordesi gn, mat er i alsci ence,andul t r at hi npr eci si onc ast i ngst opr oducedi gi t alwat ches .Thesear et he s ameski l l si tappl i est odesi gnandpr oducei t smi ni at ur ecar dcal c ul at or s,di gi t alcamer as , pock etel ect r oni cdi ct i onar i es ,andot hersmal lel ect r oni c s. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof 6-53 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 82. Foracor ecompet encet obeavi abl ebasi sf ort hecor por at i onst r engt heni nganewbusi ness uni t ,t her ear et hr eer equi r ement s .Whi c honeoft hef ol l owi ngi snotoneoft hese r equi r ement s ? A.Thecompet encemusthel pt hebusi nessgai ns t r engt hr el at i v et oi t s compet i t i on. B.Thenewbus i nessmustbes i mi l art oex i st i ngbusi nessest obenefitf r om acor e compet ence. C.Thenew busi nes smusthav eanest abl i s hedl ar ge mar k ets har e. D.Thecol l ect i onofc ompet enci ess houl dbeuni que,s ot hatt heyc annotbeeasi l y i mi t at ed. Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,i tmustmeett hr eec r i t er i a:t hec or ecompet encemustenhance c ompet i t i v eadv ant agebycr eat i ngs uper i orcust omerv al ue;di ffer entbusi ness esi nt he c or por at i onmustbes i mi l ari natl eastonei mpor t antwayr el at edt ot hec or ecompet ence;and t hec or ecompet enci esmus tbedi fficul tf orcompet i t or st oi mi t at eorfinds ubst i t ut esf or . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 83. Shar i ngcor ec ompet enci esi soneoft hepr i mar ypot ent i aladv ant agesofdi v er si fi cat i on.I n or derf ordi v er si ficat i ont obemos ts uccessf ul ,i ti si mpor t antt hatt he A.pr oduct susesi mi l ardi st r i but i on c hannel s . B.s i mi l ar i t yr equi r edf orshar i ngcor ec ompet enci esmustbei nt he v al uechai n. C.t ar getmar k eti st hesame,ev eni ft hepr oduct sar ev er y di ffer ent . D.met hodsofpr oduct i onar et he s ame. Foracor ecompet encet ocr eat ev al ueandpr ovi deavi abl ebasi sf ors yner gyamongt he busi nessesi nacor por at i on,di ffer entbusi nes sesi nt hecor por at i onmustbesi mi l ari natl east onei mpor t antwayr el at edt ot hecor ecompet ence.I ti snotessent i alt hatt hepr oduct sor s er vi cest hemsel v esbesi mi l ar ,butatl eastoneel ementi nt hev al uec hai nmustr equi r esi mi l ar s ki l l si ncr eat i ngcompet i t i v eadv ant age. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . 6-54 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 84. Whenmanagementusescommonpr oduct i onf ac i l i t i esorpur chasi ngpr ocedur est odi s t r i but e di ffer entbutr el at edpr oduct s ,t heyar e A.bui l di ngoncor e compet enci es. B.achi evi ngpr ocess gai ns . C.usi ngpor t f ol i o anal y si s. D.s har i ng act i v i t i es. Cor por at i onscanachi ev es yner gybyshar i ngact i vi t i esac r osst hei rbusi nes suni t s .These i nc l udev al uecr eat i ngact i v i t i ess uchascommonmanuf act ur i ngf aci l i t i es ,di st r i but i on c hannel s ,ands al esf or ces. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughEc onomi esofSc opeandRev enueEnhancement 85. ShawI ndust r i es ,agi antcar petmanuf act ur er ,i ncr easesi t scont r olov err awmat er i al sby pr oduci ngmuc hofi t sownpol ypr opyl enefi ber ,ak eyi nputi nt oi t smanuf act ur i ngpr ocess .Thi s i sanex ampl eof A.v er t i cal i nt egr at i on. B.shar i ng act i v i t i es. C.pool ednegot i at i ng power . D.l ev er agi ngc or e compet enci es. ShawI ndust r i es ,acar petmanuf act ur er ,hasat t ai nedadomi nantposi t i oni nt hei ndust r yv i aa s t r at egyofv er t i cali nt egr at i on.Shawhassucces sf ul l yi mpl ement edst r at egi esofbot hf or war d andbackwar di nt egr at i on. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Appl y Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev elofDi fficul t y :3Har d Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 6-55 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 86. Ther i sksofv er t i cali nt egr at i oni ncl udeal loft hef ol l owi ngex cept A.cost sandex pensesassoci at edwi t hi ncr easedov er headandcapi t al expendi t ur es . B.l ackofc ont r olov erv al uabl e as set s . C.pr obl emsas soci at edwi t hunbal ancedcapac i t i esal ongt he v al uechai n. D.addi t i onaladmi ni s t r at i v ecost sas soci at edwi t hmanagi ngamor ecompl exs etof act i v i t i es. Ther i sksofv er t i cali nt egr at i oni ncl udec ost sandexpens esass oci at edwi t hi ncr eased ov er headandc api t alexpendi t ur es,l ossofflexi bi l i t yr esul t i ngf r om l ar gei nv est ment s ,pr obl ems as soci at edwi t hunbal ancedcapac i t i esal ongt hev al uec hai n,andaddi t i onaladmi ni st r at i v e c ost sassoci at edwi t hmanagi ngamor ecompl exsetofact i v i t i es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 87. Unbal ancedcapaci t i est hatl i mi tc ostsav i ngs ,di fficul t i esi nc ombi ni ngspeci al i zat i ons ,and r educedfl exi bi l i t yar edi s adv ant agesassoci at edwi t h A.st r at egi c al l i ances. B.v er t i cal i nt egr at i on. C.hor i z ont al i nt egr at i on. D.di v es t i t ur e. Ther i sksofv er t i cali nt egr at i oni ncl udec ost sandexpens esass oci at edwi t hi ncr eased ov er headandc api t alexpendi t ur es,l ossofflexi bi l i t yr esul t i ngf r om l ar gei nv est ment s ,pr obl ems as soci at edwi t hunbal ancedcapac i t i esal ongt hev al uec hai n,andaddi t i onaladmi ni st r at i v e c ost sassoci at edwi t hmanagi ngamor ecompl exsetofact i v i t i es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 6-56 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 88. Afir ms houl dconsi derv er t i cali nt egr at i onwhen A.t hecompet i t i v es i t uat i oni shi ghl y v ol at i l e. B.cus t omerneedsar e ev ol vi ng. C.t hesuppl i er sofr aw mat er i al st ot hefi r m ar eunabl et omai nt ai nqual i t y s t andar ds. D.t hes uppl i er soft hefi r m wi l l i ngl yc ooper at ewi t ht he fi r m. Afir ms houl dconsi derv er t i cali nt egr at i oni ft hecompanyi snotsat i sfiedwi t ht hequal i t yoft he v al uet hati t spr es ents uppl i er sanddi st r i but or sar epr ovi di ng. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 89. Tr ansact i oncost si ncl udeal loft hef ol l owi ngcos t sex cept A.agenc y cos t s . B.negot i at i ng cos t s . C.sear c h cos t s . D.moni t or i ng cos t s . Tr ansact i oncost sar et hes um ofsear chc ost s ,negot i at i oncost s ,cont r act i ngcost s ,moni t or i ng c ost s ,andenf or cementc ost s .Thes et r ans act i oncos t scanbeav oi dedbyi nt er nal i zi ngt he act i vi t y ,i not herwor ds ,bypr oduci ngt hei nputi nhouse. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :1Eas y Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 6-57 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 90. Ver t i c ali nt egr at i oni sat t r act i v ewhen A.i nt er naladmi ni st r at i v ecos t sar ehi ghert hant r ansact i on cos t s . B.t r ans act i oncos t sandi nt er naladmi ni st r at i v ec ost sar e equal . C.t r ans act i onc ost sar ehi ghert hani nt er naladmi ni st r at i v e cos t s . D.s ear c hcost sar ehi ghert hanmoni t or i ng cos t s . I ft r ans act i onc ost sar ehi ghert hanadmi ni s t r at i v ecost s ,t hati s ,t hos ecost si nc ur r edwhen c oor di nat i ngt heact i v i t i esel sewher ei nt hev al uec hai n,v er t i cali nt egr at i onbecomesan at t r act i v es t r at egy . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0603Howc or por at i onsc anuser el at eddi v er si fic at i ont oachi ev es y ner gi s t i cbenefi t st hr oughec onomi esof s copeandmar k etpower . Lev el ofDi fficul t y :2Medi um Topi c :Rel at edDi v er si fic at i ont hr oughMar k etPower 91. Cr eat i ngv al uewi t hi nbusi nessuni t scanhappenwhent hecor por at eofficehel pss ubsi di ar i es mak ewi s echoi cesi nt hei rownac qui si t i ons ,di vest ur es,andnewv ent ur es.Thi si sk nownas A.par ent i n g. B.r est r uct ur i n g. C.l ev er agi ngcor e compet enci es. D.i ncr easi ngmar k et power . Par entcompani escr eat ev al uet hr oughmanagementex per t i se.Theyi mpr ov epl ansand budget sandpr ovi deespeci al l yc ompet entcent r alf unct i onssuc hasl egal ,fi nanci al ,human r esour cemanagement ,andpr ocur ement .Theyal sohel psubs i di ar i esmak ewi s echoi cesi n t hei rownac qui si t i ons ,di vest i t ur es ,andnewi nt er naldev el opmentdeci si ons . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-58 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 92. Cr eat i ngv al uewi t hi nbusi nessuni t scanhappenwhenafir mt r i est ofi ndandac qui r eei t her poor l yper f or mi ngfir mswi t hunr eal i z edpot ent i alorfi r msi ni ndust r i esont het hr eshol dof s i gni ficant ,posi t i v ec hange.Thi sact i oni sk nownas A.r est r uct ur i n g. B.l ev er agi ngcor e compet enci es. C.par ent i n g. D.s har i ng act i v i t i es. I nr es t r uct ur i ng,t hecor por at eofficet r i est ofi ndpoor l yper f or mi ngfir mswi t hunr eal i z ed pot ent i alorfir msi ni ndust r i esont het hr eshol dofs i gni ficant ,posi t i v ec hange.Thepar ent i nt er v enes ,of t ens el l i ngoffpar t soft hebusi nes s;changi ngt hemanagement ;r educi ngpayr ol l andunnecessar ys our cesofexpens es ;changi ngst r at egi es;andi nf usi ngt hec ompanywi t h newt echnol ogi es,pr ocesses ,orr ewar ds y st ems . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 93. Accor di ngt ot het ext ,c or por at er est r uct ur i ngi ncl udes A.capi t alr est r uct ur i ng,assetr est r uct ur i ng,andt echnol ogy r est r uct ur i ng. B.capi t alr est r uct ur i ng,assetr est r uct ur i ng,andmanagement r est r uct ur i ng. C.managementr es t r uct ur i ng,financi alr es t r uct ur i ng,andpr oc ur ement r est r uct ur i ng. D.gl obaldi v er si ficat i on,c api t alr est r uct ur i ng,andas set r est r uct ur i ng. Rest r uct ur i ngc ani nv ol v echangesi nasset s,c api t als t r uct ur e,ormanagement . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-59 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 94. Por t f ol i omanagementmat r i cesar eappl i edt owhatl ev elofs t r at egy? A.depar t ment al l ev el B.busi ness l ev el C.cor por at e l ev el D.i nt er nat i onal l ev el Cor por at el ev els t r at egyaddr essest wor el at edi ssues:whatbusi nessess houl dac or por at i on c ompet ei nandhowcant hes ebusi nessesbemanageds ot heycr eat es y ner gy .Por t f ol i o managementmat r i cesc anbeusedt oi mpr ov eunder s t andi ngoft hecompet i t i v epos i t i onofa por t f ol i o( orf ami l y )ofbusi nes ses ,t osuggestst r at egi cal t er nat i v es,andt oi dent i f ypr i or i t i esf or t heal l ocat i onofr esour ces. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 95. Whenusi ngaBCG mat r i x ,abus i nesst hatcur r ent l yhol dsal ar gemar k etshar ei nar api dl y gr owi ngmar k etandhasmi ni malornegat i v ec ashfl ow woul dbek nownasa A.St ar . B.Dog . C.Cas h Cow. D.Ques t i on Mar k . Eac hoft hef ourquadr ant soft heBCG Por t f ol i ogr i dhasdi ffer enti mpl i cat i onsf ort heSBUs t hatf al li nt ot hatcat egor y .St ar sar eSBUsc ompet i ngi nhi ghgr owt hi ndust r i eswi t hr el at i v el y hi ghmar k ets har es .Thesefi r mshav el ongt er m gr owt hpot ent i alands houl dc ont i nuet o r ecei v es ubs t ant i ali nv est mentf undi ng. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :1Eas y Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-60 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 96. I nt heBCG Mat r i x ,abus i nesst hathasal ow mar k etshar ei nani ndust r yc har act er i z edbyhi gh mar k etgr owt hi st er meda A.St ar . B.Cash Cow. C.Ques t i on Mar k . D.Dog . Eac hoft hef ourquadr ant soft heBCG Por t f ol i ogr i dhasdi ffer enti mpl i cat i onsf ort heSBUs t hatf al li nt ot hatcat egor y .Quest i onMar ksar eSBUscompet i ngi nhi ghgr owt hi ndust r i esbut hav i ngr el at i v el yweakmar k ets har es.Resour cess houl dbei nv est edi nt hem t oenhancet hei r c ompet i t i v eposi t i ons. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :1Eas y Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 97. Por t f ol i omanagementf r amewor k s,suchast heBCG mat r i x ,s har ewhi choft hef ol l owi ng c har act er i st i c s ? A.Busi nessesar epl ot t edona3di mensi onal gr i d. B.Gr i ddi mensi onsar ebasedonext er nalenvi r onment sandi nt er nalc apabi l i t i esmar k et posi t i ons . C.Posi t i oni nt hemat r i xsuggest saneedf orshar i ng s yner gi es . D.Theyar emosthel pf uli nhel pi ngbusi nessesdevel opt ypesofcompet i t i v e adv ant age. Por t f ol i omodel sar eov er l ysi mpl i st i c ,c onsi st i ngofonl yt wodi mens i ons( gr owt handmar k et s har e) .Theyv i eweac hbusi nessass epar at e,i gnor i ngpot ent i als yner gi esac r ossbus i nesses . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-61 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 98. ACas hCow,i nt heBCG f r amewor k ,r ef er st oabusi nes st hathas A.hi ghmar k etgr owt handr el at i vel yhi ghmar k et s har e. B.r el at i vel yl owmar k ets har eandl owmar k et gr owt h. C.r el at i v el yl owmar k ets har eandhi ghmar k et gr owt h. D.l ow mar k etgr owt handr el at i v el yhi ghmar k et s har e. Eac hoft hef ourquadr ant soft heBCG Por t f ol i ogr i dhasdi ffer enti mpl i cat i onsf ort heSBUs t hatf al li nt ot hatcat egor y .Cas hCowsar eSBUswi t hhi ghmar k ets har esi nl owgr owt h i ndust r i es .Theseuni t shavel i mi t edl ongr unpot ent i albutr epr esentasour ceofc ur r entc ash fl owst of undi nv est ment si nSt ar sandQuest i onMar ks . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 99. I nmanagi ngt hecor por at epor t f ol i o,t heBCG mat r i xwoul ds uggestt hat A.Dogss houl dbei nv est edi nt oi ncr easemar k etshar eandbecome Cas hCows . B.St ar sar ei nl owgr owt hmar k et sandc anpr ov i deex cesscas ht of undot her oppor t uni t i es. C.Cas hCowsr equi r esubs t ant i alcas hout l ayst omai nt ai n mar k ets har e. D.Ques t i onMar kscanr epr esentf ut ur eSt ar si ft hei rmar k etshar ei s i nc r eased. Eac hoft hef ourquadr ant soft heBCG Por t f ol i ogr i dhasdi ffer enti mpl i cat i onsf ort heSBUs t hatf al li nt ot hatcat egor y .Quest i onMar ksar eSBUscompet i ngi nhi ghgr owt hi ndust r i esbut hav i ngr el at i v el yweakmar k ets har es.Resour cess houl dbei nv est edi nt hem t oenhancet hei r c ompet i t i v eposi t i ons,pot ent i al l ymaki ngt hem St ar s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 6-62 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 100. I nt heBCG Gr owt hShar eMat r i x ,t hes uggest edst r at egyf orSt ar si st o A.mi l kt hem t ofinanceot her busi nesses. B.i nv estl ar ges umst ogai nagoodmar k et s har e. C.mai nt ai nposi t i onandaf t ert hemar k etgr owt hsl owsus et hebus i nesst opr ovi de cas hflow. D.noti nv es ti nt hem andt os hi f tcas hflowt oot her busi nesses. St ar sar eSBUscompet i ngi nhi ghgr owt hi ndust r i eswi t hr el at i v el yhi ghmar k ets har es .Thes e fi r mshavel ongt er m gr owt hpot ent i alands houl dc ont i nuet or ecei v es ubst ant i ali nv es t ment f undi ng.Whengr owt hsl ows ,t heymaybecomeCas hCowst hemsel v es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0604Howc or por at i onsc anuseunr el at eddi v er si fic at i ont oat t ai ns y ner gi s t i cbenefi t st hr oughc or por at e r es t r uct ur i ng,par ent i ng,andpor t f ol i oanal y si s . Lev el ofDi fficul t y :2Medi um Topi c :Unr el at edDi v er si fi cat i ont hr oughFi nanc i al Sy ner gi esandPar ent i ng 101. Thepr i mar ymeansbywhi chafi r mc andi ver si f yar e__________,_________,and ________. A.mer ger sandac qui si t i ons;di ffer ent i at i on;ov er al lc ost l eader s hi p B.mer ger sandacqui si t i ons;j oi ntv ent ur esands t r at egi cal l i ances;i nt er nal dev el opment C.j oi ntvent ur esandst r at egi cal l i ances;i nt egr at i onofv al uec hai nact i v i t i es ;acqui r i ng humancapi t al D.mer ger sandacqui si t i ons;i nt er naldev el opment ; di ffer ent i at i on Ther ear et hr eebasi cmeansofdi v er s i ficat i on:Fi r st ,t hr oughacqui si t i onsormer ger s, c or por at i onscandi r ect l yacqui r ecompanyas set sandcompet enci es .Second,cor por at i ons mayagr eet opoolt her esour cesofot herc ompani eswi t ht hei rr esour cebase,commonl y k nownasaj oi ntv ent ur eorst r at egi cal l i ance.Thi r d,cor por at i onsmaydi v er si f yi nt onew pr oduct s ,mar k et s ,andt ec hnol ogi est hr oughi nt er naldev el opment . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-63 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 102. Thedownsi desorl i mi t at i onsofmer ger sandac qui si t i onsi nc l udeal loft hef ol l owi ngex cept : A.I ti sasl ow meanst oent ernewmar k et sandac qui r eski l l sand compet ences. B.Di fficul t i esex i sti ni nt egr at i ngt heact i v i t i esandr es our cesoft heacqui r edfi r mi nt oongoi ng oper at i ons . C.Ther ec anbemanyc ul t ur ali s suest hatc andoom anot her wi sepr omi si ng ac qui si t i on. D.Pr emi umst hatar ef r equent l ypai dt oacqui r eabusi nes sar e ex pensi v e. Ther ear es ev er all i mi t at i onsofmer ger sandac qui si t i onsi ncl udi ngt hatt ak eov erpr emi ums pai df oracqui si t i onsar et y pi cal l yv er yhi gh,compet i ngfi r msof t encani mi t at eanyadv ant ages orc opys yner gi est hatr es ul tf r om t hemer geroracqui si t i on,manageregoss omet i mesgeti n t hewayofsoundbusi nes sdeci s i ons,andc ul t ur ali s suesmaydoom t hei nt endedbenefit sf r om M andAendeav or s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 103. Di v est i ngofbusi ness esc anaccompl i s hmanydi ffer entobj ect i v es ,exc ept A.enabl i ngmanager st of ocust hei reffor t smor edi r ect l yont hec or ebusi nessesof t hefi r m. B.pr ov i di ngt hefir m wi t hmor er es our cest os pendonmor eat t r act i v e al t er nat i v es . C.r ai si ngcas ht ohel pf undexi st i ng busi nesses. D.di sper si ngmanager f ocus . Di v est i ngabusi nesscanaccompl i shmanydi ffer entobj ect i v esi ncl udi ng:enabl i ngmanager s t of ocust hei reffor t smor edi r ect l yont hec or ebusi nessesoft hefi r m,pr ovi di ngt hefi r m wi t h mor er esour cest os pendonmor eat t r act i v eal t er nat i v es,andr ai si ngcasht ohel pf undexi st i ng busi nesses. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-64 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 104. I BM,Memor i alSl oanKet t er i ng,andCedar s Si naihav ea_________wher ebyI BM r ecei v es exper tmedi c alknowl edget hati tusest ol ev er agei t st echnol ogi calski l l st odev el opnew medi cali nsi ght s . A.j oi nt di v er si ficat i on B.di v est me nt C.s t r at egi c al l i ance D.gl obal i nt egr at i on St r at egi cal l i ancesmaybeusedt obui l dj oi nt l yont het echnol ogi calexper t i seoft woormor e c ompani es .Thi smayenabl et hent odev el oppr oduct st ec hnol ogi cal l ybey ondt hecapabi l i t yof t hec ompani esact i ngi ndependent l y . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 105. Cooper at i v er el at i onshi pss uchas__________hav epot ent i aladv ant agess uchasent er i ng newmar k et s ,r educ i ngmanuf act ur i ng( orot her )cos t si nt hev al uec hai n,anddev el opi ngand di ffusi ngnewt echnol ogi es. A.f r anchi se s B.mer ger s C.ac qui si t i on s D.j oi ntv ent ur esands t r at egi c al l i ances St r at egi cal l i ancesandj oi ntv ent ur eshav emanypot ent i aladv ant ages .Amongt hesear e ent er i ngnewmar ket s ,r educ i ngmanuf act ur i ng( orot her )cos t si nt hev al uec hai n,and dev el opi nganddi ffusi ngnewt echnol ogi es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-65 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 106. Whi choft hef ol l owi ngi snotpar tofagoodgui del i nel i s tf ormanagi ngs t r at egi cal l i ances ? A.est abl i shi ngacl earunder st andi ngbet ween par t ner s B.notshor t changi ngy our par t ner C.r el y i ngpr i mar i l yonac ont r actt omak et hej oi ntv ent ur e wor k D.wor ki nghar dt oensur eacol l abor at i v er el at i onshi pbet ween par t ner s St r at egi cal l i ancesandj oi ntv ent ur esshoul densur et hes t r engt hscont r i but edbyt hepar t ner s ar euni que;t huss yner gi esc r eat edcanbemor eeasi l ys ust ai nedov ert hel ongert er m.The goali st odev el ops yner gi esbet weenpar t nerc ont r i but i ons ,r es ul t i ngi nawi nwi ns i t uat i on. Mor eov er ,t hepar t ner smustbecompat i bl eandwi l l i ngt ot r usteachot her .Thesepar t ner s hi ps maybeunder t ak enwi t horwi t houtacont r act . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 107. Whi choft hef ol l owi ngst at ement sr egar di ngi nt er naldev el opmentasameansofdi ver si ficat i on i sf al se? A.Manyc ompani esusei nt er naldevel opmentt oext endt hei rpr oductor s er vi c eoffer s . B.Anadv ant ageofi nt er naldev el opmenti st hati ti sgener al l yf ast ert hanot hermeansof di v er si ficat i onandfir msc anbenefitf r om s peedi ndev el opi ngnew pr oduct sands er v i ces. C.Thefi r mi sabl et oc apt ur eweal t hcr eat edwi t houthav i ngt oshar et heweal t hwi t hal l i ance par t ner s . D.Fi r msc anof t endev el oppr oduct sors er vi cesatal owerc ost ,i ft heyr el yont hei rown r esour cesi ns t eadofext er nalf undi ng. Pot ent i aldi sadv ant agest oi nt er naldevel opmenti nc l udet hati tmaybet i mecons umi ngand t hatfir msmayf or f ei tt hebenefit sofs peedt hatgr owt ht hr oughmer ger scanpr ov i de.Thi smay bei mpor t antt ohi ght echoraknowl edgebasedor gani z at i oni nf ast pacedenvi r onment si n whi c hbei nganear l ymov eri sc r i t i cal . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-66 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 108. I nt er naldev el opmentmaybet i mec onsumi ngand,t her ef or e,fir msmayf or f ei tt hebenefit sof s peedt hatgr owt ht hr ough__________and__________canpr ov i de. A.st r at egi cal l i ances;j oi nt v ent ur es B.st r at egi cal l i ances ; mer ger s C.mer ger s; ac qui si t i ons D.mer ger s;j oi nt v ent ur es Ther ear epot ent i aldi sadv ant agest oi nt er naldev el opment .I tmaybet i mec onsumi ng;fi r ms mayf or f ei tt hebenefit sofspeedt hatgr owt ht hr oughmer ger soracqui si t i onscanpr ovi de.Thi s maybei mpor t antamonghi ght echoraknowl edgebasedor gani z at i oni nf ast paced envi r onment s ,wher ebei nganear l ymov eri scr i t i c al . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 109. Fi r mst hatchoos et odi v er s i f yt hr oughi nt er naldev el opmentmustdev el op_________t hat al l owt hem t omov e__________f r om i ni t i aloppor t uni t yr ecogni t i ont omar k eti nt r oduct i on. A.st r at egi es; s l owl y B.capabi l i t i es; qui c kl y C.capabi l i t i es; s l owl y D.s t r at egi es ; qui c kl y Fi r mst hatchoos et odi v er s i f yt hr oughi nt er naldev el opmentmustdev el opcapabi l i t i est hat al l owt hem t omov equi ckl yf r om i ni t i aloppor t uni t yr ec ogni t i ont omar k eti nt r oduct i on. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 6-67 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 110. Li onsgat e( aCanadi anAmer i canent er t ai nmentc ompany)andAl i baba( aChi nes eec ommer cecompany)cr eat ed_________t oopent heChi nesemar ketf ort heLi ons gat e s t r eami ngshowsandmovi es .Al i babapr ofit sbyget t i ngaccesst ocont entt oi ncr easedemand f ori t sownset t opmedi abox es . A.aj oi nt v ent ur e B.a mer ger C.an ac qui si t i on D.as t r at egi c al l i ance Ast r at egi cal l i ancei sac ooper at i v er el at i onshi pbet weent wo( ormor e)fir ms.Al l i ancesmaybe ei t heri nf or malorf or mal .Suchcooper at i v er el at i ons hi pshavemanypot ent i aladv ant ages , i nc l udi ngent er i ngnewmar k et sanddi ffusi ngnew t ec hnol ogi es . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Under s t and Lear ni ngObj ect i v e:0605Thev ar i ousmeansofengagi ngi ndi v er si fic at i on—mer ger sandac qui si t i ons,j oi ntvent ur es/ st r at egi c al l i anc es,andi nt er nal dev el opment . Lev el ofDi fficul t y :2Medi um Topi c :TheMeanst oAc hi ev eDi v er s i ficat i on 111. Accor di ngt oMi chaelPor t er ,t her ei sat r emendousal l ur et o_________.I ti st hebi gpl ay ,t he dr amat i cgest ur e.Wi t hones t r ok eoft hepeny ouc anaddbi l l i onst os i z e,getaf r ont page s t or y ,andc r eat eex ci t ementi nmar k et s. A.st r at egi cal l i ancesandj oi nt v ent ur es B.i nt er nal dev el opment C.mer ger sand ac qui si t i ons D.di ffer ent i at i on s t r at egi es Ther ei sanex ci t ementandas soci at edr ec ogni t i onofmaki ngamaj oracqui si t i on.Mi c hael Por t erofHar v ar dUni v er si t ynot edt hatt her ei sat r emendousal l ur et omer ger sand acqui si t i ons .I ti st hebi gpl ay ,t hedr amat i cges t ur e.Wi t honest r ok eoft hepeny oucanadd bi l l i onst osi z e,getaf r ont pagest or y ,andc r eat eex ci t ementi nmar k et s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Appl y Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev elofDi fficul t y :3Har d Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-68 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 112. Theant i t ak eov ert act i c,_______,i swhenafi r m offer st obuys har esoft hei rs t ockf r om a c ompany( ori ndi v i dual )pl anni ngt oacqui r et hei rfir m atahi gherpr i cet hant heunf r i endl y c ompanypai df ori t . A.gol den par ac hut e B.poi son pi l l C.gr eenma i l D.s cor ched ear t h Gr eenmai li saneffor tbyt het ar getfir mt opr ev entani mpendi ngt ak eov er .Whenahos t i l efi r m buy sal ar gebl ockofout s t andi ngt ar getcompanyst ockandt het ar getc ompanymanagement f eel st hatat enderofferi si mpendi ng,t heyoffert obuyt hes t ockbackf r om t hehost i l e c ompanyatahi gherpr i c et hant heunf r i endl ycompanypai df ori t . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :1Eas y Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 113. Anant i t ak eov ert act i ci nwhi c hexi st i ngshar ehol der shav et heopt i ont obuyaddi t i onalshar es ofs t ockatadi s countt ot hec ur r entmar ketpr i cei scal l ed______. A.gr eenma i l B.agol den par ac hut e C.apoi son pi l l D.s cor ched ear t h Poi sonpi l l sar eanant i t ak eov ert act i cusedbyacompanyt ogi v es har ehol der sc er t ai nr i ght si n t heev entofat ak eov erbyanot herfi r m.Theyar eal soknownass har ehol derr i ght spl ans. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :1Eas y Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-69 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0 114. Thet er m gol denpar achut er ef er st o A.acl aus er equi r i ngt hathugedi vi dendpayment sbemadeupon t ak eov er . B.paygi v ent oex ecut i v esfi r edbecauseofa t ak eov er . C.financ i ali nducement soffer edbyat hr eat enedfi r mt os t opahost i l esui t orf r om ac qui r i ngi t . D.manager sofafir mi nahost i l et ak eov erappr oachi ngat hi r dpar t yaboutmaki ngt he ac qui si t i on. Agol denpar achut ei sapr ear r angedcont r actwi t hmanager ss peci f yi ngt hat ,i nt heev entofa host i l et ak eov er ,t het ar getc ompanymanager swi l lbepai das i gni ficants ev er ancepackage. AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :1Eas y Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 115. Ant i t ak eovert act i csi ncl udeal loft hef ol l owi ngex cept A.gr eenmai l . B.poi son pi l l s . C.gol den par ac hut es. D.gol den handcuffs . Ant i t ak eovert act i csar ecommon,i ncl udi nggr eenmai l ,gol denpar achut es,andpoi sonpi l l s . AACSB:Anal yt i calThi nki ng Acces si bi l i t y :Keyboar dNav i gat i on Bl ooms :Remember Lear ni ngObj ect i v e:0606Manager i albehavi or st hatcaner odet hecr eat i onofv al ue. Lev el ofDi fficul t y :1Eas y Topi c :HowManager i al Mot i v esCanEr odeVal ueCr eat i on 6-70 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 0 0
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