GEB 4890 - Exam 2 with Complete
Solutions Latest Version
restructuring ✔✔redesigning an organization so that it can more effectively and efficiently
serve its customers
portfolio management ✔✔a method of (a) assessing the competitive position of a portfolio of
businesses within a corporation, (b) suggesting strategic alternatives for each business, and (c)
identifying priorities for the allocation of resources across the businesses.
internal capital market ✔✔allows a diversified company to add value by shifting capital from
business units generating free cash flow to those needing additional capital to expand and
realize their growth potential
cash cow/cash hog ✔✔in the portfolio matrix, a business unit that generates more cash than it
needs to maintain its market share
acquisitions ✔✔the incorporation of one firm into another through purchase
acquisition premiums ✔✔the amount by which the price offered exceeds the preacquisition
market value or stock price of the target company
transaction costs ✔✔the costs that parties incur in the process of agreeing to and following
, through on a bargain
mergers ✔✔the combining of two or more firms into one new legal entity
divestments ✔✔the exit of a business from a firm's portfolio; "cut their losses"
strategic alliance ✔✔A long-term partnership between two or more companies established to
help each company build competitive market advantages.
joint venture ✔✔an agreement between two or more companies to share a business project
internal development ✔✔entering a new business through investment in new facilities, often
called corporate entrepreneurship and new venture development
corporate venturing ✔✔process of developing new businesses as an outgrowth of a company's
established business operations
business strategy ✔✔A leadership plan that achieves a specific set of goals or objectives
generic strategies ✔✔fundamental philosophical options for the design of strategies
Solutions Latest Version
restructuring ✔✔redesigning an organization so that it can more effectively and efficiently
serve its customers
portfolio management ✔✔a method of (a) assessing the competitive position of a portfolio of
businesses within a corporation, (b) suggesting strategic alternatives for each business, and (c)
identifying priorities for the allocation of resources across the businesses.
internal capital market ✔✔allows a diversified company to add value by shifting capital from
business units generating free cash flow to those needing additional capital to expand and
realize their growth potential
cash cow/cash hog ✔✔in the portfolio matrix, a business unit that generates more cash than it
needs to maintain its market share
acquisitions ✔✔the incorporation of one firm into another through purchase
acquisition premiums ✔✔the amount by which the price offered exceeds the preacquisition
market value or stock price of the target company
transaction costs ✔✔the costs that parties incur in the process of agreeing to and following
, through on a bargain
mergers ✔✔the combining of two or more firms into one new legal entity
divestments ✔✔the exit of a business from a firm's portfolio; "cut their losses"
strategic alliance ✔✔A long-term partnership between two or more companies established to
help each company build competitive market advantages.
joint venture ✔✔an agreement between two or more companies to share a business project
internal development ✔✔entering a new business through investment in new facilities, often
called corporate entrepreneurship and new venture development
corporate venturing ✔✔process of developing new businesses as an outgrowth of a company's
established business operations
business strategy ✔✔A leadership plan that achieves a specific set of goals or objectives
generic strategies ✔✔fundamental philosophical options for the design of strategies
