BUS5117 Strategic Management Unit 5 Graded Quiz — 25 Q&A
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 5 Graded Quiz — Corporate-Level Strategy
25 Questions with Verified Answers | Score: 96/100
Question 1:
Which of the following best distinguishes corporate-level strategy from business-level strategy?
A) Corporate strategy determines what businesses the firm should be in, while business strategy
focuses on how to compete within a specific industry.
B) Corporate strategy focuses on daily operational efficiencies, while business strategy focuses
on long-term acquisitions and mergers.
C) Corporate strategy is formulated exclusively by external consultants, whereas business
strategy is the direct responsibility of the CEO.
D) Corporate strategy solely deals with localized marketing tactics, while business strategy
handles international financial restructuring.
Answer: A
Explanation:
Corporate-level strategy addresses the overarching scope of the organization and the portfolio of
businesses it holds, answering the question of "where to compete." In contrast, business-level
strategy (competitive strategy) deals with "how to compete" successfully within a specific market
or industry. Options B, C, and D incorrectly define the scope and managerial responsibilities
associated with these strategic levels.
, Question 2:
A firm utilizes a related diversification strategy primarily to achieve which of the following
objectives?
A) To expand into businesses that have no strategic fit with the firm's existing value chain to
isolate financial risk.
B) To leverage core competencies and share resources across similar value chain activities to
achieve strategic synergy.
C) To balance cash flows by acquiring firms in counter-cyclical industries that do not overlap with
current operations.
D) To consolidate market share by forcing the immediate liquidation of a direct competitor in the
exact same market segment.
Answer: B
Explanation:
Related diversification occurs when a firm expands into new industries that share commonalities
with its existing value chain, allowing for the transfer of skills and resource sharing to create
synergy (economies of scope). Unrelated diversification focuses on financial risk reduction
without value chain overlap. Option D describes horizontal integration rather than related
diversification.
Question 3:
Which scenario best justifies a firm's decision to pursue an unrelated diversification strategy?
A) The firm wishes to share its cutting-edge marketing capabilities across overlapping consumer
product lines.
B) The firm wants to achieve economies of scope by utilizing the same automated manufacturing
facilities for all products.
C) The firm seeks to create value through efficient internal capital allocation, risk reduction, and
restructuring underperforming acquisitions.
D) The firm aims to command a monopoly position by merging with its largest direct competitor in
the same geographic region.
Answer: C
Explanation:
Unrelated diversification creates value primarily through corporate parenting advantage, such as
efficient capital allocation, restructuring, or risk spreading across disparate industries, rather than
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 5 Graded Quiz — Corporate-Level Strategy
25 Questions with Verified Answers | Score: 96/100
Question 1:
Which of the following best distinguishes corporate-level strategy from business-level strategy?
A) Corporate strategy determines what businesses the firm should be in, while business strategy
focuses on how to compete within a specific industry.
B) Corporate strategy focuses on daily operational efficiencies, while business strategy focuses
on long-term acquisitions and mergers.
C) Corporate strategy is formulated exclusively by external consultants, whereas business
strategy is the direct responsibility of the CEO.
D) Corporate strategy solely deals with localized marketing tactics, while business strategy
handles international financial restructuring.
Answer: A
Explanation:
Corporate-level strategy addresses the overarching scope of the organization and the portfolio of
businesses it holds, answering the question of "where to compete." In contrast, business-level
strategy (competitive strategy) deals with "how to compete" successfully within a specific market
or industry. Options B, C, and D incorrectly define the scope and managerial responsibilities
associated with these strategic levels.
, Question 2:
A firm utilizes a related diversification strategy primarily to achieve which of the following
objectives?
A) To expand into businesses that have no strategic fit with the firm's existing value chain to
isolate financial risk.
B) To leverage core competencies and share resources across similar value chain activities to
achieve strategic synergy.
C) To balance cash flows by acquiring firms in counter-cyclical industries that do not overlap with
current operations.
D) To consolidate market share by forcing the immediate liquidation of a direct competitor in the
exact same market segment.
Answer: B
Explanation:
Related diversification occurs when a firm expands into new industries that share commonalities
with its existing value chain, allowing for the transfer of skills and resource sharing to create
synergy (economies of scope). Unrelated diversification focuses on financial risk reduction
without value chain overlap. Option D describes horizontal integration rather than related
diversification.
Question 3:
Which scenario best justifies a firm's decision to pursue an unrelated diversification strategy?
A) The firm wishes to share its cutting-edge marketing capabilities across overlapping consumer
product lines.
B) The firm wants to achieve economies of scope by utilizing the same automated manufacturing
facilities for all products.
C) The firm seeks to create value through efficient internal capital allocation, risk reduction, and
restructuring underperforming acquisitions.
D) The firm aims to command a monopoly position by merging with its largest direct competitor in
the same geographic region.
Answer: C
Explanation:
Unrelated diversification creates value primarily through corporate parenting advantage, such as
efficient capital allocation, restructuring, or risk spreading across disparate industries, rather than
