All of the following were results of Citigroup’s acquisition strategy EXCEPT (Chapter
7 Strategic Focus)
a. overly diversified.
b. a much smaller, though global, business financial service firm.
c. too large.
d. lacking in synergy.
Michael Porter’s Determinants of National Advantage describe factors associated with
the firm’s domestic environment that contribute to its dominance in a particular global
industry.
a. True
b. False
Smith Commercial Lighting, Inc., which sells lighting for factories and businesses, has
entered into an alliance with Revelation Lighting, Inc., a retailer of home decor lighting,
in order to expand into the trend of using industrial-type lighting in non-traditional style
homes. Smith has invested 40 percent and Revelation has invested 60 percent into the
new operation. This is an example of a(n)
a. joint venture.
b. nonequity alliance.
c. horizontal complementary strategic alliance.
d. vertical complementary strategic alliance.
A competitive advantage
a. can be permanent if the firm has successfully implemented the strategic management
process.
b. entails reducing investors’ risk to near zero.
c. can be identified only if it has been unsuccessfully challenged by competitors.
d. exists when competing firms are unable to find investors.
Essentially, has become one of the world’s largest markets with 700 million potential
consumers.
a. the European Union
b. the United States
c. China
d. Japan
Acquisitions are a low-risk approach to producing and managing innovation.
a. True
b. False
The risks of a focus strategy include
a. a competitor’s ability to use its core competencies to outfocus the focuser by serving
an even more narrowly defined segment.
b. a competitor’s ability to use its core competencies to outfocus the focuser by serving
an even more broadly defined segment.
c. decisions by industry-wide competitors to use their resources to serve a wider range
of customers’ needs than the focuser has been serving.
d. decisions by focused competitors to use their resources to serve a wider range of
customers’ needs.
The generalized forms of value that goods and services provide are either low cost with
acceptable features or highly differentiated features with acceptable cost.
a. True
b. False
In the United States, cooperative strategies to reduce competition may result in if they
are explicit.
a. increased tax liabilities
b. litigation
c. government takeover of the firms
d. dissolution of the firm
Which acquisition would be considered the LEAST related?
a. A candy manufacturer purchases a chemical laboratory specializing in food
flavorings.
b. A chain of garden centers acquires a landscape architecture firm.
c. A hospital acquires a long-term care nursing home.
d. An upscale “white-tablecloth” restaurant chain acquires a travel agency.
Although licensing is the least costly method to enter a foreign market, its
disadvantages include high costs of transportation and low control over the marketing
and distribution of goods.
a. True
b. False
If intellectual property rights in an emerging economy are not well-protected, the
number of firms in the industry is rapidly growing, and the need for global integration
is high, is the preferred entry mode.
a. exporting
b. strategic alliance
c. a joint venture or wholly owned subsidiary
d. licensing
The most critical ability of a strategic leader is the ability to attract and then manage
human capital.
a. True
b. False