MGMT 495 Final Exam Study Guide Questions with Correct Answers

MGMT 495 Final Exam Study Guide Questions with Correct Answers product diversification strategy - Answer-corporate strategy with a singular focus on product/service variety product-market diversification strategy - Answer-corporate strategy in which a firm is active in multipe product markets and multiple geographic markets core competence-market matrix - Answer-framework to guide corporate diversification strategy by analyzing possible combinations of existing/new core competencies and existing/new markets diversification discount - Answer-situation in which the stock price of highly diversified firms is valued at less than the sum of their individual business units diversification premium - Answer-situation in which the stock price of related-diversification firms is valued at greater than the sum of their individual business units BCG Growth-Share Matrix - Answer-Corporate planning tool in which the corporation is viewed as a portfolio of business units, which are represented graphically along relative market share and speed of growth matrices. SBUs are plotted into 4 categories (dogs, cash cows, stars, and question marks), each of which warrants a different investment strategy Question marks (high growth, low relative market share) - earnings: low, unstable, or growing cash flow: negative strategy: increase market share or divest/sell