MBA 705 - Minsun Kim Exam 3 questions and answers

Corporate-level strategy - ANSWER-highest level of decision formulated by the highest level of management team (CEO and top managers) of the company CEOS and top managers ask questions such as - ANSWER-- which business unit(s) should we have? -How should we support and enhance the value of each business as a whole? Business Unit Managers ask questions such as - ANSWER--How individual business units compete and win in their own individual market? Operational managers ask questions such as - ANSWER-How to improve the effectiveness and efficiencies of operations? What are the Three Corporate Level Strategies? - ANSWER-Growth Strategy (increase in size) Stability Strategy (Retain current size) Retrenchment strategy (decrease in size) Internal Growth - ANSWER-accomplished when a firm increases its revenues, production capacity, and workforce External Growth - ANSWER-when two firms merge or one acquires the other Acquisition - ANSWER-a form of merger whereby one firm purchases another, often with a combination of cash and stock Merger - ANSWER-occurs when two or more firms, usually of roughly similar sizes, combine into one through an exchange of stock Shortcoming of a merger or acquisition - ANSWER-1. The acquiring firm pays a premium 2. Top managers of the acquired firm often depart the organization 3. Building a common culture after layoffs can be complicated Five forms of External