Quiz 4

A  large-scale entry.

B  pre-acquisition screening that increases the time it takes to enter a market.

C  slowness in establishing significant market presence.

D  poor commercialization.

E  differences in corporate culture.

A  seek to achieve a low-cost position instead of differentiation.

B  incur bureaucratic costs that exceed the value created by the strategy.

C  seek to achieve differentiation instead of low cost.

D  diversify into areas in which they have some knowledge and miss out on profitable opportunities in other areas.

E  make acquisitions rather than develop new technologies on their own.

A  related

B  opposed

C  identical

D  not comparable

E  unrelated

A  hires another firm to perform value creation activities.

B  merges with one of its suppliers.

C  buys one of its rivals.

D  enters into a strategic alliance with multiple firms.

E  enters into a joint venture with a rival.

A  unrelated diversification.

B  forward integration.

C  backward integration.

D  related diversification.

E  taper integration.

A  avoid talking about ways of increasing profitability in the business model.

B  select a new CEO and reappoint the board of directors.

C  develop a “multibusiness model” that justifies its entry into different businesses.

D  create one common business model for all the industries rather than each business unit.

E  halt marketing activities in the current industry to avoid being associated with one specific industry.

A  True

B  False

A  True

B  False

A  False

B  True

A  False

B  True

A  True

B  False

A  True

B  False