Question 1

According to the patching approach,strategic analysis should:

Accepted Answer

The answer of According to the patching approach,strategic analysis should:
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Question 2

Under the ________ approach,establishing a vision,building resources and leveraging across markets are all strategic steps to be taken by the firm.

Accepted Answer

The Resources approach focuses on building and leveraging a firm's resources and capabilities across different markets to establish a competitive advantage and achieve strategic goals.

Question 3

_______ is the process by which corporate executives routinely remap businesses to match rapidly changing market opportunities.

Accepted Answer

Patching is the strategic process used by corporate executives to realign or adjust their business portfolios. This involves adding, splitting, transferring, exiting, or combining pieces of the business to respond to changing market conditions or opportunities, ensuring the company remains competitive and can capitalize on new developments.

Question 4

Realizing ____ from shared capabilities and core competencies is a key way value is added in multibusiness companies.

Accepted Answer

Synergies refer to the added value obtained from the combination of resources or competencies that result in a better overall performance. Therefore, realizing synergies from shared capabilities and core competencies can create value in multibusiness companies.

Question 5

The fact that ______ may exist in classifying sources of parenting opportunity is a minor consideration,relative to the value of the parenting framework for strategic analysis in multi-business companies.

Accepted Answer

The sentence suggests that overlap or redundancy, if it exists in classifying sources of parenting opportunity, is not a major consideration compared to the usefulness of the parenting framework for analyzing multi-business companies. The other options (turbulent markets, major changes, common capabilities) are not mentioned in the sentence and do not seem to be relevant to the context.

Question 6

For competitive advantage to be sustainable,any combination of competencies must be:

Accepted Answer

Sustainable competitive advantage requires a unique combination of competencies that are difficult to replicate by competitors. If the competencies are easily imitated, then the advantage is not sustainable in the long term. The competencies do not necessarily have to be expensive or sustainable themselves, but they must be unique to the company and difficult for others to copy.

Question 7

Whether apparent or not,_______ among business units within or outside the parent company may be complex or difficult to establish without parent company help.

Accepted Answer

Linkages among business units within or outside the parent company may be complex or difficult to establish without parent company help. Capabilities, expertise, and sales may also require parent company help, but they are not explicitly mentioned in the sentence.

Question 8

When markets are turbulent and rapidly changing,_______ is seen as critical to the creation of economic value in a multi-business company.

Accepted Answer

Patching refers to the process of reconfiguring businesses by adding, splitting, transferring, exiting, or combining units to respond to fast-changing market conditions. This strategic approach is critical for creating economic value in a multi-business company during turbulent times, as it allows the company to adapt quickly to new opportunities and threats.

Question 9

Ensuring that certain issues are addressed,objectively assessed and assisting in any resolution may be a parenting opportunity that could add value.These issues--like attracting and keeping people with specialized skills--are:

Accepted Answer

The issues mentioned in the question, such as attracting and keeping people with specialized skills, are management-based. This means that they relate to the skills and strategies required to effectively manage a business or organization. Therefore, option B is the best choice. Options A, C, and D are not relevant to the issues mentioned in the question.

Question 10

Governments,regulators,unions and suppliers represent ________ who potentially could be managed more effectively by the parent,than by the individual business units.

Accepted Answer

Governments, regulators, unions, and suppliers are all external stakeholders who may have varying interests and regulations that need to be navigated by the parent company. Managing them all effectively requires a broader perspective and strategy that may be better handled by the parent rather than individual business units. Specialized expertise and predictable errors do not necessarily fall under the category of stakeholders. Internal stakeholders are typically managed within the individual business units themselves.

Question 11

The core competency must represent a major source of value to be a basis for competitive advantage.Furthermore,the core competence:

Accepted Answer

A core competence must be transferable, which means that it can be applied across multiple products, markets, or industries. This allows the company to leverage its strengths and create a competitive advantage in various areas. Being negotiable or financial has no relevance to the concept of core competence, and being too diversified may spread the company too thin and dilute its strengths.

Question 12

In the parenting framework,the corporate office of a multibusiness company is the

Accepted Answer

The corporate office of a multibusiness company is the parent in the parenting framework because it oversees and guides the various business units, just like a parent would do for their children. The different business units are like the children, each with their own strengths and weaknesses, and the parent office provides support and resources to help them thrive.

Question 13

Situations that involve _______ occur when no real overlapping capabilities or products exist other than financial resources.

Accepted Answer

Unrelated diversification refers to situations where a company enters into a new industry or market that is not related to its existing operations. In such situations, the company's only commonality with the new market is financial resources, and there are no real overlapping capabilities or products. This strategy is often chosen by companies that want to reduce the risk of dependence on a single industry or market.

Question 14

The _________ perspective sees multi-business companies as creating value by influencing the businesses they own.

Accepted Answer

The parenting perspective sees multi-business companies as creating value by influencing the businesses they own through activities such as providing resources, sharing expertise, and transferring best practices. The strategic environment perspective focuses on the external factors that affect a firm's strategic decisions, the growth-share matrix is a tool used to assess the strategic position of a company's business units, and patching is a strategy to optimize the performance of a company's existing assets. Therefore, the best choice is D.

Question 15

Lengthy product life cycles can lead to over reliance on old products.This is an example of:

Accepted Answer

This statement describes the predictable error of relying too much on outdated products during a lengthy product life cycle.

Question 16

The least profitable firms are:

Accepted Answer

Broadly diversified firms whose strategies are build around very general resources such as money tend to have less focus on specific industries or markets, and may struggle to create a sustainable competitive advantage. This can lead to lower profitability compared to more specialized firms.

Question 17

The duration of an advantage in patching is:

Accepted Answer

The answer of The duration of an advantage in patching...

Question 18

Consider Vepco,a company that began as a rocket propulsion development firm and grew through vertical integration.The firm is trying to figure out how to keep pace with the accelerated trends toward outsourcing that has developed in the last 10 years.Which type of parenting opportunity does this represent?

Accepted Answer

The company is facing the need to redefine its business model in order to adapt to the trend towards outsourcing. This falls under the category of business definition/redefinition parenting opportunity.

Question 19

_______ is those that rely on the same or similar capabilities to be successful and attain competitive advantage in their respective product markets.

Accepted Answer

Related businesses rely on the same or similar capabilities to be successful and attain competitive advantage in their respective product markets. Leveraged businesses employ a significant amount of debt to finance their operations, while networked businesses rely on collaboration and partnerships to achieve success. Unrelated businesses operate in completely different industries and have little to no overlap in their capabilities.

Question 20

The strategic logic of patching is to:

Accepted Answer

The answer of The strategic logic of patching is to:
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Quiz 9: Multibusiness Strategy