MAN 4720 UPDATED COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Single Business MultiProduct Strategy - ✔✔firm generates at least 95 percent of its
sales revenues from sales generated within a single business. What kind of strategy is
it?
✔✔Synergy by alliance - ✔✔Strategic alliances at the corporate level between firms can
be used to create synergy. Synergy is created when partners share resources or
integrate complementary capabilities to build economies of scope.
✔✔Very High Levels - ✔✔Unrelated
✔✔Acquisitions - ✔✔transaction in which a firm buys a controlling interest in another
firm with the intention of either making it a subsidiary business or combining it with its
current business or businesses
✔✔acquisition strategy - ✔✔an action plan that the firm develops to successfully
acquire other companies
✔✔competitive M-form - ✔✔organizational structure in which there is complete
independence between the firm's divisions --> supports the unrelated strategy
, ✔✔Cooperative M-form - ✔✔organizational structure in which horizontal integration is
used so that divisions can share resources and activities --> supports the related
constrained strategy
✔✔Corporate relatedness - ✔✔is achieved when corporate-level core competencies are
successfully transferred into some of the firm's businesses
✔✔Country-specific or location advantages - ✔✔These advantages are concerned with
the desirability of producing in the home country versus locating production and
distribution assets in the host country
o If these advantages for production are stronger in the home country, exporting is likely
the best choice for entering an international market.
✔✔Diversification by Alliance - ✔✔o R&D strategic alliances may be formed with the
intent to develop new products that serve markets distinct from those that the partners
currently serve.
✔✔Dominant Business MultiProduct Strategy - ✔✔A firm using the dominant business
multi product strategy generates between 70 and 95 percent of its sales revenues from
a single product group.
✔✔Economies of scope - ✔✔are cost savings the firm accrues when it successfully
shares some of its resources and activities between its businesses or transfers
corporate-level competencies into its business
✔✔through operational relatedness when the firm successfully shares primarily tangible
resources or a support activity is successfully used in more than one of its businesses -
✔✔How are economics of scope created?
✔✔Example of a single business? - ✔✔Kohl's
✔✔Why firms develop strategic alliances - ✔✔o Access to a restricted market
o Develop new goods or services
o Facilitate new market entry
o Share significant R&D investments
o Share risks and buffer against uncertainty
o Develop market power
o Gain access to complementary resources
o Build economies of scale
o Meet competitive challenges
o Learn new skills and capabilities
o Outsource for lower costs and higher-quality output
✔✔Exporting - ✔✔the process of sending goods and services from one country to
another for distribution, sale, and service
QUESTIONS AND ANSWERS SURE A+
✔✔Single Business MultiProduct Strategy - ✔✔firm generates at least 95 percent of its
sales revenues from sales generated within a single business. What kind of strategy is
it?
✔✔Synergy by alliance - ✔✔Strategic alliances at the corporate level between firms can
be used to create synergy. Synergy is created when partners share resources or
integrate complementary capabilities to build economies of scope.
✔✔Very High Levels - ✔✔Unrelated
✔✔Acquisitions - ✔✔transaction in which a firm buys a controlling interest in another
firm with the intention of either making it a subsidiary business or combining it with its
current business or businesses
✔✔acquisition strategy - ✔✔an action plan that the firm develops to successfully
acquire other companies
✔✔competitive M-form - ✔✔organizational structure in which there is complete
independence between the firm's divisions --> supports the unrelated strategy
, ✔✔Cooperative M-form - ✔✔organizational structure in which horizontal integration is
used so that divisions can share resources and activities --> supports the related
constrained strategy
✔✔Corporate relatedness - ✔✔is achieved when corporate-level core competencies are
successfully transferred into some of the firm's businesses
✔✔Country-specific or location advantages - ✔✔These advantages are concerned with
the desirability of producing in the home country versus locating production and
distribution assets in the host country
o If these advantages for production are stronger in the home country, exporting is likely
the best choice for entering an international market.
✔✔Diversification by Alliance - ✔✔o R&D strategic alliances may be formed with the
intent to develop new products that serve markets distinct from those that the partners
currently serve.
✔✔Dominant Business MultiProduct Strategy - ✔✔A firm using the dominant business
multi product strategy generates between 70 and 95 percent of its sales revenues from
a single product group.
✔✔Economies of scope - ✔✔are cost savings the firm accrues when it successfully
shares some of its resources and activities between its businesses or transfers
corporate-level competencies into its business
✔✔through operational relatedness when the firm successfully shares primarily tangible
resources or a support activity is successfully used in more than one of its businesses -
✔✔How are economics of scope created?
✔✔Example of a single business? - ✔✔Kohl's
✔✔Why firms develop strategic alliances - ✔✔o Access to a restricted market
o Develop new goods or services
o Facilitate new market entry
o Share significant R&D investments
o Share risks and buffer against uncertainty
o Develop market power
o Gain access to complementary resources
o Build economies of scale
o Meet competitive challenges
o Learn new skills and capabilities
o Outsource for lower costs and higher-quality output
✔✔Exporting - ✔✔the process of sending goods and services from one country to
another for distribution, sale, and service
