Question 1

Which two of the following areas does Henry (2018) describe as areas for assistance by the corporate parent to the business unit?&#10;A) Linkage influence&#10;B) Functional and services influence&#10;C) Strategic influence&#10;D) Resource influence

Accepted Answer

A

Question 2

Economies of scope can be seen as the cost benefits resulting from&#10;A) using the same resource across a range of outputs&#10;B) using the same resources more efficiently&#10;C) using new resources across a range of outputs&#10;D) using large amounts of new resources

Accepted Answer

Economies of scope refer to the cost benefits obtained when a firm uses the same resources (such as labor, machinery, or technology) to produce a variety of different outputs. By doing so, the firm can lower its average cost per unit of production, since it is spreading its fixed costs over a wider range of products. Economies of scope are distinct from economies of scale, which result from producing more of the same product and leveraging the benefits of larger-scale operations.

Question 3

Mergers and Acquisitions remain popular strategic activities and seek to exploit synergies between firms. Longer term however they often fail to generate expected&#8230;&#10;A) shareholder value&#10;B) stakeholder value&#10;C) share price growth&#10;D) shareholder dividends

Accepted Answer

Mergers and acquisitions often fail to generate expected shareholder value over the longer term, despite seeking to exploit synergies between firms. Therefore, choice A is the best option.

Question 4

Mergers and Acquisitions remain popular strategic activities and seek to exploit synergies between firms. Longer term however they often fail to generate expected&#8230;&#10;A) shareholder value&#10;B) stakeholder value&#10;C) share price growth&#10;D) shareholder dividends

Accepted Answer

Mergers and Acquisitions often fail to generate expected shareholder value over the long term.

Question 5

The success of a strategic alliance may lie in its&#10;A) management&#10;B) ownership structure&#10;C) Resource alignment&#10;D) Market value

Accepted Answer

The answer of The success of a strategic alliance may...

Question 6

Two factors that have a positive influence on strategic alliance performance are:&#10;A) Clear organizational arrangements for the alliance&#10;B) A philosophy of organizational learning&#10;C) Strong contractual clauses&#10;D) Credible commitments

Accepted Answer

Clear organizational arrangements for the alliance ensure that all parties involved understand their roles and responsibilities, which reduces misunderstandings and conflicts. A philosophy of organizational learning involves continuously improving the alliance through shared learning and feedback, which leads to better performance over time. Strong contractual clauses and credible commitments are important, but they do not guarantee positive influence on strategic alliance performance.

Question 7

In situations of high corporate relatedness which two of the following would be value creating strategies?&#10;A) Rare capability, can create diseconomies of scope&#10;B) Economies of scope&#10;C) Market power&#10;D) Financial economies

Accepted Answer

The answer of In situations of high corporate relatedness which...

Question 8

When considering collaborative approaches to diversification which two from the following are key considerations?&#10;A) Risk&#10;B) Reward&#10;C) Share price&#10;D) Market share

Accepted Answer

Risk and reward are key considerations when considering collaborative approaches to diversification. Collaborating with other firms can help spread the risk associated with entering new markets or developing new products. However, collaborating also comes with its own set of risks, such as conflicts of interest or differences in business culture. The potential rewards of collaboration include access to new markets, increased revenue streams, and shared resources and expertise. Therefore, it is important to carefully consider both the risks and rewards when pursuing a collaborative approach to diversification. Share price and market share are important considerations in other areas of business, but are not as directly related to collaboration and diversification efforts.

Question 9

Domain navigation describes how an organization intends to compete

Accepted Answer

Domain navigation is a strategy used by organizations to determine how they will compete and succeed in their respective markets. It involves identifying and targeting specific domains or areas within the market where the organization can excel and beat their competition.

Question 10

The role of the corporate parent is to oversee day to day activities within the business units

Accepted Answer

The answer of The role of the corporate parent is...

Deck 10: Strategies for Growth