GEB 4890 - Business Strategy Chapter 8 Already Graded A

GEB 4890 - Business Strategy Chapter 8 Already Graded A The steps involved in creating a diversified company's corporate strategy include picking new industries to enter and the means for entering them. leveraging cross-business value chain relationships into competitive advantage. establishing investment priorities. Diversifying into new industries should be explored when a single-business company encounters dwindling opportunities in its principal business. Which of the following statements are true about a successful diversification effort? It must add long-term economic value for shareholders. It must give shareholders value that they cannot get by purchasing different stocks on their own. What are the three Tests of Corporate Advantage? cost of entry test better-off test industry attractiveness test Which of the following are the ways a company can enter a new business? joint ventures internal startup acquisition Which of the following are strategic options for increasing a corporation's overall success? retrenching to a narrower scope of diversification by divesting poorly performing businesses sticking closely with the existing business lineup and pursuing opportunities presented by these businesses broadening the scope of diversification by entering additional industries Which of the following are drawbacks of acquisition? There can be high integration costs. Integration of the company into the existing firm can be time consuming. There are often excessive premiums. The decision to diversify should begin with an economic justification. Which of the following are terms that refer to diversification by starting a new business subsidiary from scratch? new venture development internal development corporate venturing Diversification is not really viewed as a success unless it yields added long-term economic value for shareholders. Entering a new business via a joint venture can be useful in which of the following situations? when diversification entails operations in a foreign country when an opportunity is too complicated or risky for one company to attempt alone when an opportunity in a new industry requires more know-how than one company has alone The potential for an existing company and a new business to function better together following diversification than they would individually is part of the b