Question 1

Downscoping involves _____.

Accepted Answer

Downscoping refers to the process of reducing the diversification of a firm by selling off units, subsidiaries, or divisions that are not part of the firm's core business. This is done to focus more on the core activities and improve efficiency and profitability.

Question 2

The term Chapter XI refers to _____.

Accepted Answer

Chapter XI refers to a section of the United States Bankruptcy Code that allows a company to reorganize its debts and business affairs while it is protected from creditors, known as Chapter 11 bankruptcy.

Question 3

A successful bankruptcy filing requires all of the following characteristics except _____.

Accepted Answer

The ability to move quickly so that court approval is not necessary is not a characteristic of a successful bankruptcy filing. In fact, court approval is a critical part of the bankruptcy process, especially in reorganization cases under chapters such as Chapter 11 in the United States. The court's role is to oversee the process, approve plans of reorganization, and ensure the fair treatment of all parties involved.

Question 4

A breakup restructuring strategy refers to _____.

Accepted Answer

A breakup restructuring strategy involves spinning off units into new public corporations to create more focused and efficient entities.

Question 5

The Boston Consulting Group matrix is based on which two factors?

Accepted Answer

The Boston Consulting Group (BCG) matrix is based on the two dimensions of business growth rate and relative market share. These factors help in categorizing business units or products into four quadrants: Stars, Question Marks, Cash Cows, and Dogs, to aid in strategic decision-making.

Question 6

Stars in a BCG grid represent _____.

Accepted Answer

Stars in a BCG (Boston Consulting Group) matrix represent business units with high business growth rates and high relative market share, indicating they are leaders in a fast-growing market.

Question 7

Einstein Bros. Bagels secured a strong presence on the West Coast by acquiring Noah's New York Bagels. The purchase of Finagle A. Bagel, a three-unit chain based in Boston gives it a foothold on the East Coast. What type of corporate strategy would you call this?

Accepted Answer

The answer of Einstein Bros. Bagels secured a strong presence...

Question 8

A fish and seafood restaurant buying a catfish farm is an example of:

Accepted Answer

Backward integration occurs when a company acquires another company that supplies the input to its production process. In this case, the fish and seafood restaurant buying a catfish farm is an example of backward integration because the restaurant is acquiring a supplier (the catfish farm) to secure its supply of catfish, which is an input to its offerings.

Question 9

Under what conditions is it better for an organization to vertically integrate to produce a good rather than produce it themselves?

Accepted Answer

The answer of Under what conditions is it better for...

Question 10

Differentiate between tangible and intangible relatedness.

Accepted Answer

The answer of Differentiate between tangible and intangible relatedness....

Question 11

Discuss the cycle of strategic reorientation.

Accepted Answer

The answer of Discuss the cycle of strategic reorientation....

Question 12

Discuss the feelings of survivors of downsizing and how firms can avoid those negative feelings.

Accepted Answer

The answer of Discuss the feelings of survivors of downsizing...

Question 13

Describe the BCG Matrix and the various cells in the model.

Accepted Answer

The answer of Describe the BCG Matrix and the various...

Quiz 6: Corporate-Level Strategy and Restructuring