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BPL 5100 Study Guide Questions for Exam | Verified Answers
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BPL 5100 Study Guide Questions for Exam | Verified Answers
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BPL 5100 Study Guide Questions for Exam |Verified Answers
acquistions - ✔✔the incorporation of one firm into another through purchase
mergers - ✔✔the combining of two or more firms into one new legal entity
divestment - ✔✔the exit of a business from a firm's portfolio
strategic alliance - ✔✔a cooperative relationship between two or more firms
joint ventures - ✔✔new entities formed within a strategic alliance in which two or more
firms, the parents, contribute equity to form the new legal entity
internal development - ✔✔entering a new business through investment in new facilities,
often called corporate enterpreneurship and new venture development
managerial motives - ✔✔managers acting in their own self-interest rather than to maximize
long-term shareholder value
growth for growth's sake - ✔✔managers' actions to grow the size of their firms not to
increase long-term profitability but to serve managerial self-interest
egotism - ✔✔managers' actions to shape their firms' strategies to serve their selfish interests
rather than to maximize long-term shareholder value
antitakeover tactics - ✔✔managers' actions to avoid losing wealth or power as a result of a
hostile takeover
, greenmail - ✔✔a payment by a firm to a hostile party for the firm's stock at a premium,
made when the firm's management feels that the hostile party is about to make a tender offer
golden parachute - ✔✔a prearranged contract with managers specifying that, in the event of
a hostile takeover, the target firm's managers will be paid a significant severance package
poison pills - ✔✔used by a company to give shareholders certain rights in the event of
takeover by another firm
Globalization - ✔✔a term that has two meanings: (1) the increase in international exchange,
including trade in goods and services as well as exchange of money, ideas, and information; (2)
the growing similarity of laws, rules, norms, values, and ideas across countries; the rise of
market capitalism around the world
Challenges of globalization - ✔✔Determining how to meet the needs of customers at very
different income levels; The challenge for multinational firms is to tailor their products and
services to meet the needs of the "bottom of the pyramid"
Michael Porter's diamond of national advantage - ✔✔a framework for explaining why
countries foster successful multinational corporations; consists of four factors: factor
endowments; demand conditions; related and supporting industries; and firm strategy,
structure, and rivalry
Factor endowments (national advantage) - ✔✔a nation's position in factors of production,
such as skilled labor or infrastructure, necessary to compete in a given industry
Demand conditions (national advantage) - ✔✔the nature of home-market demand for the
industry's product or service
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