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BUS 475 EXAM 2 QUESTIONS AND CORRECT ANSWERS

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BUS 475 EXAM 2 QUESTIONS AND CORRECT ANSWERS

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What is it called when a diversified company can add value by shifting capital from
business units generating free cash flow to those needing additional capital to
expand and realize their growth potential?


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Internal capital market




A differentiation strategy works best when


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technological change is fast-paced and competition revolves around
rapidly evolving product features.

, A "think-local, act -local" multidomestic type of strategy


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is more appealing when the country-to-country differences in buyer tastes,
cultural traditions, and market conditions are diverse




Retrenching to a narrower diversification base is


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a strategy that allows a diversified firm's energies to be concentrated on
building strong positions in a smaller number of businesses rather the
stretching its resources and managerial attention too thinly across many
businesses.




The essence of a broad differentiation strategy is to


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offer unique product attributes in ways that are valuable an appealing and
that buyers consider worth paying for




A low-cost provider strategy can defeat a differentiation strategy when


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