MBA Exam 2 Learning Objectives
Chapter 6
What is corporate level strategy, what does it involve, and how is it different than
business level strategy?
What is product diversification?
What is level and type of diversification? Identify and describe the 5 categories of
businesses in Figure 6.1
Why do firms diversify? Identify and explain value-creating, value-neutral, and value
reducing incentives to diversify. Table 6.1.
Describe the relationships depicted in Figure 6.2.
What are relatedness diversification, economies of scope, operational relatedness and
corporate relatedness? How are these terms related?
What is market power and how can it be created using related diversification?
Define multipoint competition and vertical integration.
What are unrelated diversification and financial economies? How are these terms
related?
Identify and explain two types of financial economies.
What is portfolio analysis and what is it used for?
Identify and briefly describe 2 tools that can be used to evaluate a firm portfolio of
business units.
Chapter 7
Define merger, acquisition, and takeover.
Identify and describe 7 reasons why firms use merger and acquisition strategies?
What are horizontal, vertical, related, unrelated, and cross-border acquisitions?
Identify and describe 7 potential problems with merger and acquisition strategies?
Identify and describe basic attributes of successful acquisitions. Table 7.1
What is restructuring and when should it be used?
Identify and describe 3 restructuring strategies.
Chapter 8
Explain Figure 8.1.
What is an international strategy?
What incentives do firms have to use international strategies?
Identify and describe 3 benefits of international strategies?
Identify and describe a firm’s international strategic options at the business-level.
Identify and describe the 3 international corporate level strategies: multidomestic, global,
and transnational.
Explain Figure 8.3.
Identify and describe 5 international entry mode choices and the advantages and
disadvantages of each.
Identify and describe strategic competitive outcomes of international strategy.
Identify and describe basic political risks, economic risks, and management problems of
international strategy.
Chapter 9
What is a cooperative strategy?
What are strategic alliances and what do they involve?
Identify and describe 3 types of strategic alliances.
Why do firms develop strategic alliances?
What is a business-level cooperative strategy and what can it be used for?
Identify and describe 4 types of business-level cooperative strategies.
What are vertical and horizontal complementary strategic alliances?
What is a corporate-level cooperative strategy and what can it be used for?
Identify and describe 3 types of corporate-level cooperative strategies.
What is an international cooperative strategy and what can it be used for?
What is a cross-border strategic alliance and why should they be used?
What is a network cooperative strategy and what can it be used for?
Identify and describe 2 types of alliance networks.
What are the major risks of cooperative strategies?