MHR 423 - Midterm 2 Exam Questions With
Complete Answers
Creating Corporate Advantage Article takeaways:
1) Relatedness is about ________
2) A firm whose various businesses develop, manufacture and sell high-tech products is
more likely to use
a) Customized controls
b) Operational controls
c) Strategic controls
d) Financial controls - ANSWER resources, b
When to acquire, when to ally
article takeaways:
1) It made sense for Pfizer to ALLY with Warner Lambert because of:
a) expensive drug testing
b) high market uncertainty
c) modular synergies
2) Organizational structure might lead firms to the wrong decision when:
a) CEOs are too busy signing new
deals
b) different executives are in
charge of alliances and
acquisitions
c) synergies are sequential
3) In acquisitions, the acquirer often underestimates
a) the target firm's employees'
, turnover
b) the restructuring of the
distribution channels
c) the economies of scale
all the listed answers - ANSWER b, b, a
Selecting international modes of entry and expansion
article takeaways:
1) Firms that want to prevent technological leaks in target countries should avoid using
a) Licensing
b) Wholly-owned subsidiaries
c) Air travel
d) Exporting
2) Which entry mode is used when a Japanese company manufactures its products in
Japan and then, sells them in target countries?
a) Exporting
b) Licensing
c) Joint-ventures
d) Wholly-owned subsidiaries
3) When firms switch from exports to JV or WOS as their entry modes, _____________
increases in the target country
a) Foreign Direct Investment
b) Resentment
c) The number of lawsuits - ANSWER a, a, a
WIPO intellectual property
article takeaways:
1) Natural substances are protected by
a) None of the listed answers
b) Trademarks
, c) Patents
d) Industrial designs
2) Characters are protected by ____________
3) If your product has a unique quality because of the location in which it was produced,
you will want to establish
a) An appellation of origin
b) A geographic trademark
c) An industrial design - ANSWER a, copyrights, a
Corporate strategy is concerned with two main questions:
1) In what __________ (or product markets) should we compete?
2) How should headquarters ___________ these businesses? - ANSWER businesses,
manage
__________________ is an increase in the variety of products and services a firm offers or
markets and geographic regions in which it competes - ANSWER diversification
Acquiring a competitor is an example of _____________ integration
Acquiring a supplier is an example of ______________ integration
backward or forward? ______________ - ANSWER horizontal, vertical, backward
Pepsi acquiring Mountain Dew is an example of ___________ integration
Pepsi acquiring their bottlers is an example of (forward) ____________ integration
Pepsi partnering with Naked juices is an example of ________ diversification
Pepsi partnering with Pizza Hut is an example of ________ diversification - ANSWER
horizontal, vertical, related, unrelated
______________ diversification occurs when a firm obtains revenues from other lines of
business related to the primary business
*encompasses horizontal and vertical integrations but can also go beyond with
businesses in similar industries
Complete Answers
Creating Corporate Advantage Article takeaways:
1) Relatedness is about ________
2) A firm whose various businesses develop, manufacture and sell high-tech products is
more likely to use
a) Customized controls
b) Operational controls
c) Strategic controls
d) Financial controls - ANSWER resources, b
When to acquire, when to ally
article takeaways:
1) It made sense for Pfizer to ALLY with Warner Lambert because of:
a) expensive drug testing
b) high market uncertainty
c) modular synergies
2) Organizational structure might lead firms to the wrong decision when:
a) CEOs are too busy signing new
deals
b) different executives are in
charge of alliances and
acquisitions
c) synergies are sequential
3) In acquisitions, the acquirer often underestimates
a) the target firm's employees'
, turnover
b) the restructuring of the
distribution channels
c) the economies of scale
all the listed answers - ANSWER b, b, a
Selecting international modes of entry and expansion
article takeaways:
1) Firms that want to prevent technological leaks in target countries should avoid using
a) Licensing
b) Wholly-owned subsidiaries
c) Air travel
d) Exporting
2) Which entry mode is used when a Japanese company manufactures its products in
Japan and then, sells them in target countries?
a) Exporting
b) Licensing
c) Joint-ventures
d) Wholly-owned subsidiaries
3) When firms switch from exports to JV or WOS as their entry modes, _____________
increases in the target country
a) Foreign Direct Investment
b) Resentment
c) The number of lawsuits - ANSWER a, a, a
WIPO intellectual property
article takeaways:
1) Natural substances are protected by
a) None of the listed answers
b) Trademarks
, c) Patents
d) Industrial designs
2) Characters are protected by ____________
3) If your product has a unique quality because of the location in which it was produced,
you will want to establish
a) An appellation of origin
b) A geographic trademark
c) An industrial design - ANSWER a, copyrights, a
Corporate strategy is concerned with two main questions:
1) In what __________ (or product markets) should we compete?
2) How should headquarters ___________ these businesses? - ANSWER businesses,
manage
__________________ is an increase in the variety of products and services a firm offers or
markets and geographic regions in which it competes - ANSWER diversification
Acquiring a competitor is an example of _____________ integration
Acquiring a supplier is an example of ______________ integration
backward or forward? ______________ - ANSWER horizontal, vertical, backward
Pepsi acquiring Mountain Dew is an example of ___________ integration
Pepsi acquiring their bottlers is an example of (forward) ____________ integration
Pepsi partnering with Naked juices is an example of ________ diversification
Pepsi partnering with Pizza Hut is an example of ________ diversification - ANSWER
horizontal, vertical, related, unrelated
______________ diversification occurs when a firm obtains revenues from other lines of
business related to the primary business
*encompasses horizontal and vertical integrations but can also go beyond with
businesses in similar industries
