BUSI 4940 EXAM REVIEW QUESTIONS WITH CORRECT ANSWERS ALL VERIFIED BY AN EXPERT A+ GRADED (LATEST UPDATE)
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Course
Mgmt
Institution
Mgmt
Corporate-Level Strategy - ANS A __________________________ are actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets
Single Business Diversification - ANS Low Level of Diversification wherein 95%...
K
C
LO
BUSI 4940 EXAM REVIEW
YC
QUESTIONS WITH CORRECT
ANSWERS ALL VERIFIED BY
D
AN EXPERT A+ GRADED
U
(LATEST UPDATE)
ST
, Corporate-Level Strategy - ANS A __________________________ are actions a firm takes to
gain a competitive advantage by selecting and managing a group of different businesses
competing in different product markets
Single Business Diversification - ANS Low Level of Diversification wherein 95% or More of
revenue comes from a single, core business area.
For example, the McIlhenny Company, producer of Tabasco brand, has maintained its focus on
its family's hot sauce products for seven generations.
K
Dominant Business Diversification - ANS Low Level of Diversification wherein between 70%
and 95% of revenue comes from a single business area.
C
The United Parcel Service (UPS) uses this strategy. Recently UPS generated 63 percent of its
revenue from its U.S. package delivery business and 20 percent from its international package
business, with the remaining 17 percent coming from the firm's non-package business.
LO
Related Constrained Diversification - ANS Moderate to High Levels of Diversification wherein
Less than 70% of revenue comes from the dominant business, and all businesses share
product, technological, and distribution linkages.
YC
Relaxed Linked Diversification - ANS Moderate to High Levels of Diversification wherein Less
than 70% of revenue comes from the dominant business, and there are only limited links
between businesses.
Unrelated Diversification - ANS Very High Levels of Diversification wherein Less than 70% of
revenue comes from the dominant business, and there are no common identifiable links
D
Value-Creating - ANS Reasons for ______________ Diversification
1. Economies of Scope (related diversification)
2. Match and Increase Market Power (related diversification)
3. Financial Economies (unrelated diversification)
Value-Neutral - ANS Reasons for ______________ Diversification
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