STR 581: Ch 8: Corporate Strategy 114 Questions with 100% Correct Answers | Updated & Verified|2024

The steps involves in creating a diversified company's corporate strategy include ______ - ️️1. picking new industries to enter and the means for entering them 2. establishing investment priorities 3. leveraging cross-business value chain relationships into competitive advantage Diversifying into new industries ____ - ️️should be explored when a single business company encounters dwindling opportunities in its principal business Diversification is not really viewed as a success unless it ____. - ️️yields added long-term economic value for shareholders What are the three tests of corporate advantage? - ️️1. the industry attractiveness test 2. the cost of entry test 3. the better off test The means of entering a new business by buying an existing business is referred to as ______. - ️️acquisition Which of the following are strategic options for increasing a corporation's overall success? - ️️1. broadening the scope of diversification by entering additional industries 2. sticking closely with the existing business lineup and pursuing opportunities presented by these businesses 3. retrenching to a narrower scope of diversification by divesting poorly performing businesses Which of the following are drawbacks of acquisition? - ️️1. there can be high integration costs