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MNGT 4800 actual exam 2 Questions with 100%
Correct Answers
• Corporate-level strategy (corporate strategy) - ANSWER •
Quest for competitive advantage when competing in multiple
industries.
• Scope of the firm - ANSWER • Industry value chain
• Products and services
• Geography
Diversification (Types and revenue from primary activity) -
ANSWER • Single business >95%
• Dominant Business 70-90%
• Related- Constrained <70%
• Related-Linked <70%
• Unrelated diversification <70%
• Related- Constrained - ANSWER • A firm that earns less than
70% of the revenue from its main line of business and its other
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lines of business share product, technological, and distribution
linkages with the main business.
• Related-Linked - ANSWER • A firm that operates in related
markets, but fewer linkages exist between the new and existing
markets than the elements create separately.
• Unrelated Diversification - ANSWER • Competes in product
categoris and markets with few, if any, links between them.
• Greenfield entry - ANSWER • Entry into an adjacent market by
a firm that opens its own operation.
• Acquisition - ANSWER • The purchases of another company,
or its assets.
• Slack - ANSWER • Employing slack- unused resource capacity.
For example: Delta's main focus is to transport people but has
empty space on the bottom of the plane so they make money
by transporting cargo as well.
MNGT 4800 actual exam 2 Questions with 100%
Correct Answers
• Corporate-level strategy (corporate strategy) - ANSWER •
Quest for competitive advantage when competing in multiple
industries.
• Scope of the firm - ANSWER • Industry value chain
• Products and services
• Geography
Diversification (Types and revenue from primary activity) -
ANSWER • Single business >95%
• Dominant Business 70-90%
• Related- Constrained <70%
• Related-Linked <70%
• Unrelated diversification <70%
• Related- Constrained - ANSWER • A firm that earns less than
70% of the revenue from its main line of business and its other
, 2|Page
lines of business share product, technological, and distribution
linkages with the main business.
• Related-Linked - ANSWER • A firm that operates in related
markets, but fewer linkages exist between the new and existing
markets than the elements create separately.
• Unrelated Diversification - ANSWER • Competes in product
categoris and markets with few, if any, links between them.
• Greenfield entry - ANSWER • Entry into an adjacent market by
a firm that opens its own operation.
• Acquisition - ANSWER • The purchases of another company,
or its assets.
• Slack - ANSWER • Employing slack- unused resource capacity.
For example: Delta's main focus is to transport people but has
empty space on the bottom of the plane so they make money
by transporting cargo as well.
