MGMT 449 Final || 100% Correct Answers.
1. If Applebee's decides to diversify, it has all the following options except
a. mergers and acquisitions.
b. strategic alliances.
c. shareholder development.
d. joint ventures. correct answers c. shareholder development
2. Unilever is a large multinational organization that has many business sharing distribution
resources. Diversification strategies take advantage of the __________ that exist in their
organization.
a. costs
b. employees
c. synergies
d. discontinuities correct answers c. synergies
3. Texas Instruments, a giant electronic products producer, synthesizes it abilities in
miniaturization, microprocessor design, material science, and ultrathin precision castings to
produce digital watches. It uses the same skills to produce card calculators, digital cameras, and
other small electronics. These collective skills are known as
a. core competencies
b. strategic resources
c. shared activities
d. economies of scope correct answers a. core competencies
4. If Hyundai Motors buys Kia Motors, which of the following would an advantage of this
diversification?
a. pooled negotiation power
, b. corporate restructuring and parenting
c. portfolio management
d. none of the above correct answers
5. If Geico Insurance Company buys See's Candy Company, which of the following would be an
advantage of this diversification?
a. leveraging core competencies
b. portfolio management
c. vertical integration
d. none of the above correct answers
6. Economies of scope refers to
a. cost savings from leveraging core competencies or sharing unrelated activities among
businesses in the corporation.
b. profit sharing from leveraging core competencies or sharing related activities among
businesses in the corporation.
c. cost savings from leveraging core competencies or sharing related activities among businesses
in the firm.
d. none of the above correct answers b. profit sharing from leveraging core competencies or
sharing ***related*** activities among businesses in the corporation.
7. As a unit of Proctor and Gamble, Crest brand enjoys significant clout with suppliers and
customers since it is part of a firm that makes large purchases from suppliers and provides a wide
variety of products. This is called:
a. production power
b. supplier power
c. customer power
d. none of the above correct answers
1. If Applebee's decides to diversify, it has all the following options except
a. mergers and acquisitions.
b. strategic alliances.
c. shareholder development.
d. joint ventures. correct answers c. shareholder development
2. Unilever is a large multinational organization that has many business sharing distribution
resources. Diversification strategies take advantage of the __________ that exist in their
organization.
a. costs
b. employees
c. synergies
d. discontinuities correct answers c. synergies
3. Texas Instruments, a giant electronic products producer, synthesizes it abilities in
miniaturization, microprocessor design, material science, and ultrathin precision castings to
produce digital watches. It uses the same skills to produce card calculators, digital cameras, and
other small electronics. These collective skills are known as
a. core competencies
b. strategic resources
c. shared activities
d. economies of scope correct answers a. core competencies
4. If Hyundai Motors buys Kia Motors, which of the following would an advantage of this
diversification?
a. pooled negotiation power
, b. corporate restructuring and parenting
c. portfolio management
d. none of the above correct answers
5. If Geico Insurance Company buys See's Candy Company, which of the following would be an
advantage of this diversification?
a. leveraging core competencies
b. portfolio management
c. vertical integration
d. none of the above correct answers
6. Economies of scope refers to
a. cost savings from leveraging core competencies or sharing unrelated activities among
businesses in the corporation.
b. profit sharing from leveraging core competencies or sharing related activities among
businesses in the corporation.
c. cost savings from leveraging core competencies or sharing related activities among businesses
in the firm.
d. none of the above correct answers b. profit sharing from leveraging core competencies or
sharing ***related*** activities among businesses in the corporation.
7. As a unit of Proctor and Gamble, Crest brand enjoys significant clout with suppliers and
customers since it is part of a firm that makes large purchases from suppliers and provides a wide
variety of products. This is called:
a. production power
b. supplier power
c. customer power
d. none of the above correct answers
