MNG3701 STUDY NOTES 2026
VERIFIED A+
◉ Restructuring requires the corporate office to find either poorly
performing firms with unrealized potential or firms in industries on the
threshold of significant, positive change.
Answer: True.
A restructuring strategy involves acquiring companies that are
underperforming or positioned for major positive change, then
improving and reorganizing them to increase their value.
◉ Companies that create value through management expertise in areas
such as budgeting, planning, procurement, and human resource
management are known as ________ companies.
Answer: The correct answer is parent companies.
◉ Corporate restructuring includes capital and asset restructuring as well
as ________ restructuring.
Answer: management
◉ Business level strategy addresses two related issues: what businesses
should a corporation compete in and how can these businesses be
managed so that they create synergy.
Answer: False.
,Those issues are addressed by corporate-level strategy, not business-
level strategy. Business-level strategy focuses on how a company
competes within a particular industry or market.
◉ An advantage of mergers and acquisitions is that they can enable a
firm to rapidly enter new product markets.
Answer: True
◉ Among the disadvantages of acquisitions are the expensive premiums
that are frequently paid to acquire a business.
Answer: True
◉ Companies use the tactic of ________ to give shareholders certain
rights in the event of a takeover by another firm.
Answer: poison pill
◉ Costco acquired a warehousing and distribution firm to all it to get
products to its customers better. This is best an example of what kind of
strategy?
Answer: vertical integration
◉ The success of an acquisition is largely determined by how effectively
an acquirer implements the acquisition and integrates the two companies
into one. Which of the following is important for keeping manager focus
on maintaining success in each of their markets?
, Answer: managers need to assure systems are put in place to effectively
meet stakeholder needs
◉ Typically, joint ventures involve more control and risk than
franchising.
Answer: True.
Joint ventures generally involve more control and more risk than
franchising because both partners share ownership, decision-making,
and operational responsibilities, whereas franchising involves more
standardized control by the franchisor with lower risk exposure.
◉ Exporting is a relatively inexpensive way to enter foreign markets.
Answer: True.
Exporting is generally a relatively low-cost and low-risk way for firms
to enter foreign markets compared to establishing operations abroad.
◉ According to the textbook, over half of world output now comes from
________ markets; thus, leading to a convergence of ________
standards across the globe.
Answer: emerging; living
◉ Rivalry is intense in nations with conditions of ________ supplier
bases, ________ consumer demand, and ________ new entrant potential
from ________ industries.
Answer: strong; strong; high; related
VERIFIED A+
◉ Restructuring requires the corporate office to find either poorly
performing firms with unrealized potential or firms in industries on the
threshold of significant, positive change.
Answer: True.
A restructuring strategy involves acquiring companies that are
underperforming or positioned for major positive change, then
improving and reorganizing them to increase their value.
◉ Companies that create value through management expertise in areas
such as budgeting, planning, procurement, and human resource
management are known as ________ companies.
Answer: The correct answer is parent companies.
◉ Corporate restructuring includes capital and asset restructuring as well
as ________ restructuring.
Answer: management
◉ Business level strategy addresses two related issues: what businesses
should a corporation compete in and how can these businesses be
managed so that they create synergy.
Answer: False.
,Those issues are addressed by corporate-level strategy, not business-
level strategy. Business-level strategy focuses on how a company
competes within a particular industry or market.
◉ An advantage of mergers and acquisitions is that they can enable a
firm to rapidly enter new product markets.
Answer: True
◉ Among the disadvantages of acquisitions are the expensive premiums
that are frequently paid to acquire a business.
Answer: True
◉ Companies use the tactic of ________ to give shareholders certain
rights in the event of a takeover by another firm.
Answer: poison pill
◉ Costco acquired a warehousing and distribution firm to all it to get
products to its customers better. This is best an example of what kind of
strategy?
Answer: vertical integration
◉ The success of an acquisition is largely determined by how effectively
an acquirer implements the acquisition and integrates the two companies
into one. Which of the following is important for keeping manager focus
on maintaining success in each of their markets?
, Answer: managers need to assure systems are put in place to effectively
meet stakeholder needs
◉ Typically, joint ventures involve more control and risk than
franchising.
Answer: True.
Joint ventures generally involve more control and more risk than
franchising because both partners share ownership, decision-making,
and operational responsibilities, whereas franchising involves more
standardized control by the franchisor with lower risk exposure.
◉ Exporting is a relatively inexpensive way to enter foreign markets.
Answer: True.
Exporting is generally a relatively low-cost and low-risk way for firms
to enter foreign markets compared to establishing operations abroad.
◉ According to the textbook, over half of world output now comes from
________ markets; thus, leading to a convergence of ________
standards across the globe.
Answer: emerging; living
◉ Rivalry is intense in nations with conditions of ________ supplier
bases, ________ consumer demand, and ________ new entrant potential
from ________ industries.
Answer: strong; strong; high; related
