MGMT 449 Final Study Guide Chapter 6 || Possible Questions
Accurately Answered.
What type of strategy is described below?
a strategy that focuses on gaining long-term revenue, profits, and market value through
managing operations in multiple businesses correct answers Corporate-Level
What do you call the process of firms expanding their operations by entering new businesses?
correct answers Diversification
e.g., Google
Google Home, virtual reality, search engine, etc.
What type of diversification is described below:
a firm entering a different business in which it can benefit from leveraging core competencies,
sharing activities, or building market power correct answers related diversification
i.e., creating similar products
Name the 2 Types of Related Diversification correct answers 1.) Economies of Scope
2.) Market Power
What type of related diversification is described below?
Cost savings from leveraging core competencies or sharing related activities among businesses in
a corporation correct answers Economies of scope
, What type of related diversification is described below?
firms' abilities to profit through restricting or controlling supply to a market or coordinating with
other firms to reduce investments correct answers Market Power
Name the term below:
the improvement in bargaining position relative to suppliers and customers (part of related
diversification) correct answers Pooled negotiating power
Name the 2 Ways to Achieve Cost Savings through Economies of Scope correct answers 1.) Core
competencies
2.) Sharing activities
Which way to achieve cost savings through economies of scope is described below?
taking advantage of a firm's strategic resources that reflect the collective learning in the
organization correct answers leveraging core competencies
e.g., eHarmony and Elevated using eHarmony's special algorithm
Which way to achieve cost savings through economies of scope is described below?
having activities in 2 or more businesses' value chains done by one of the businesses correct
answers sharing activities
e.g., Mercedes (cars and buses)
Accurately Answered.
What type of strategy is described below?
a strategy that focuses on gaining long-term revenue, profits, and market value through
managing operations in multiple businesses correct answers Corporate-Level
What do you call the process of firms expanding their operations by entering new businesses?
correct answers Diversification
e.g., Google
Google Home, virtual reality, search engine, etc.
What type of diversification is described below:
a firm entering a different business in which it can benefit from leveraging core competencies,
sharing activities, or building market power correct answers related diversification
i.e., creating similar products
Name the 2 Types of Related Diversification correct answers 1.) Economies of Scope
2.) Market Power
What type of related diversification is described below?
Cost savings from leveraging core competencies or sharing related activities among businesses in
a corporation correct answers Economies of scope
, What type of related diversification is described below?
firms' abilities to profit through restricting or controlling supply to a market or coordinating with
other firms to reduce investments correct answers Market Power
Name the term below:
the improvement in bargaining position relative to suppliers and customers (part of related
diversification) correct answers Pooled negotiating power
Name the 2 Ways to Achieve Cost Savings through Economies of Scope correct answers 1.) Core
competencies
2.) Sharing activities
Which way to achieve cost savings through economies of scope is described below?
taking advantage of a firm's strategic resources that reflect the collective learning in the
organization correct answers leveraging core competencies
e.g., eHarmony and Elevated using eHarmony's special algorithm
Which way to achieve cost savings through economies of scope is described below?
having activities in 2 or more businesses' value chains done by one of the businesses correct
answers sharing activities
e.g., Mercedes (cars and buses)
