Businesses should diversify, or acquire other businesses, only under which of the
following circumstances?
a) When the combined business will be more valuable than the two separate
businesses alone
b) When the acquiring business has excess funds available for use
c) When the business environment is undergoing rapid transformation
d) When the company being acquired is significantly undervalued
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a) When the combined business will be more valuable than the two
separate businesses alone
,___________. Next, managers have to identify specific subsets of stakeholders. Again,
these will vary by company. For example, meatpacking companies and wood product
companies may both have conservationists as stakeholders, but the meatpacker will
be more influenced by People for the Ethical Treatment of Animals (PETA), while the
wood product company will be more influenced by the Sierra Club.
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Identify specific subsets within stakeholders.
Match each question in the following table to a specific area of the diversification test.
a) Does owning this business give us a bigger competitive advantage than an
alternative arrangement, such as a strategic alliance with the business?
b) How much money will we spend to buy the business we want compared to other
businesses in the industry?
c) How much power will our suppliers have over the price of the goods they sell to
us?
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a) better-off test
b) cost of entry
c) attractiveness test
__________ intelligence is the ability to understand the impact of environmental factors on
a firm and how to influence those same factors. Steve Jobs was a master of __________
,intelligence.
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Contextual
___________ intelligence, in contrast, involves knowing how to interact effectively with
others.
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Interpersonal
T or F?
Differentiation strategies increase competition because they reduce customer loyalty.
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F
__________ integration involves purchasing a business that makes inputs to another
business unit, such as if Virgin purchased an aeronautic parts manufacturer.
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Vertical
, ___________. Once stakeholder and stakeholder subsets are identified, managers will have
to determine their interests. For example, if a real estate agent working in a broker's
office identifies a particular homeowner's association as a stakeholder, it will be
helpful to know whether the association wants a safer community or lower taxes.
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Determine stakes for each stakeholder.
___________ with the firm. Managers start by identifying their company's key stakeholders.
Key stakeholders will vary by company. For example, the government is likely to be a
key stakeholder for a pharmaceutical company, while the media is a bigger
stakeholder for a movie production company.
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Map stakeholder relationships
_________ emerged, which emphasized the importance of informal social relations at
work. As opposed to scientific management's view of the firm as a machine, _________
scientists believed that organizations must be understood as a system of
interdependent human beings who share a common interest in the survival and
effective functioning of the firm.
Give this one a try later!
human relations movement
following circumstances?
a) When the combined business will be more valuable than the two separate
businesses alone
b) When the acquiring business has excess funds available for use
c) When the business environment is undergoing rapid transformation
d) When the company being acquired is significantly undervalued
Give this one a try later!
a) When the combined business will be more valuable than the two
separate businesses alone
,___________. Next, managers have to identify specific subsets of stakeholders. Again,
these will vary by company. For example, meatpacking companies and wood product
companies may both have conservationists as stakeholders, but the meatpacker will
be more influenced by People for the Ethical Treatment of Animals (PETA), while the
wood product company will be more influenced by the Sierra Club.
Give this one a try later!
Identify specific subsets within stakeholders.
Match each question in the following table to a specific area of the diversification test.
a) Does owning this business give us a bigger competitive advantage than an
alternative arrangement, such as a strategic alliance with the business?
b) How much money will we spend to buy the business we want compared to other
businesses in the industry?
c) How much power will our suppliers have over the price of the goods they sell to
us?
Give this one a try later!
a) better-off test
b) cost of entry
c) attractiveness test
__________ intelligence is the ability to understand the impact of environmental factors on
a firm and how to influence those same factors. Steve Jobs was a master of __________
,intelligence.
Give this one a try later!
Contextual
___________ intelligence, in contrast, involves knowing how to interact effectively with
others.
Give this one a try later!
Interpersonal
T or F?
Differentiation strategies increase competition because they reduce customer loyalty.
Give this one a try later!
F
__________ integration involves purchasing a business that makes inputs to another
business unit, such as if Virgin purchased an aeronautic parts manufacturer.
Give this one a try later!
Vertical
, ___________. Once stakeholder and stakeholder subsets are identified, managers will have
to determine their interests. For example, if a real estate agent working in a broker's
office identifies a particular homeowner's association as a stakeholder, it will be
helpful to know whether the association wants a safer community or lower taxes.
Give this one a try later!
Determine stakes for each stakeholder.
___________ with the firm. Managers start by identifying their company's key stakeholders.
Key stakeholders will vary by company. For example, the government is likely to be a
key stakeholder for a pharmaceutical company, while the media is a bigger
stakeholder for a movie production company.
Give this one a try later!
Map stakeholder relationships
_________ emerged, which emphasized the importance of informal social relations at
work. As opposed to scientific management's view of the firm as a machine, _________
scientists believed that organizations must be understood as a system of
interdependent human beings who share a common interest in the survival and
effective functioning of the firm.
Give this one a try later!
human relations movement
