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86.
The solar-powered car division of a large automobile company has been experiencing
negative cash flows though the market growth for such cars is predicted to be high. If the
company invests further resources into this division, it can increase its relative market
share in the future. However, if due to technological changes the car cannot create
sufficient consumer demand, then the division can prove to be unprofitable. In the Boston
Consulting Group (BCG) growth-share matrix, the solar-powered car division will be
categorized under
87.
The 3-D television division of a large consumer electronics company has been recognized
as a question mark. The company's LCD television division has been categorized under
dogs. Which of the following statements will hold well in this scenario?
88.
How can a firm pursuing a diversification strategy enhance its overall corporate
performance by leveraging financial economies?
89.
A strategy of _____ will be most beneficial for a firm to enhance its overall corporate
performance.
90.
_____ are best described as costs that occur due to political maneuvering by managers to
control capital and resource allocation and the resulting inefficiencies stemming from
suboptimal allocation of scarce resources.
91.
_____, which are incurred when pursuing a related-diversification strategy, are a function
of the number, size, and types of businesses that are linked to one another.
92.
Decisions relating to the range of products and services a firm will offer determine the
firm's
93.
The managers at AHL Chemicals Inc. decided that their firm needed to diversify because
of falling sales and lower performance in one sector. How does diversifying compensate
for the lackluster performance in this sector?
94.
There are many reasons why firms need to grow. Which of the following reasons is
strongly influenced by economies of scale?
95.
Which of the following motivations for business growth involves principal-agent
problems?
96.
How is an equity alliance different from a joint venture?
97.
RoboToys, Inc. is involved in the production of robotic toys. This firm produces the raw
materials, including metals and oils for plastic; creates the integrated circuits, displays,
and batteries; and assembles the toys. Which of the following stages of the industry value
chain is RoboToys involved in?
98.
Which of the following is a drawback of vertical integration?
99.
Caring Ketchup Inc. makes organic ketchup. To promote its products, this firm decided to
make bottles in the shape of tomatoes. To accomplish this, Caring Ketchup worked with
its bottle manufacture to create a set of unique molds for its bottles. Which of the
following specialized assets does this example demonstrate?
100.
Firms that use taper integration also use _____ when they rely on outside-market firms for
some of their supplies.
101.
A firm sources intermediate goods and components from in-house suppliers as well as
outside suppliers. In a similar fashion, another firm sells its products through company-
owned retail outlets and through independent retailers. Both of these examples
demonstrate
102.
_____ is when a firm moves activities and jobs outside its home country.
103.
In 2009, ExxonMobil bought XTO Energy, a natural gas company, for $31 billion. XTO
Energy is known for its core competency to extract natural gas from unconventional places
such as shale rock—the type of deposits currently being exploited in the United States.
ExxonMobil hopes to leverage its core competency in the exploration and
commercialization of oil into natural gas extraction. Based on this example, ExxonMobil is
engaging in
104.
Why is following an unrelated diversification strategy especially advantageous in an
emerging economy?
105.
Which quadrant in the core competence-market matrix is the hardest to pursue?
106.
Companies that pursue related diversification are more likely to improve their performance
than companies that pursue unrelated diversification because they create a
107.
In the early 1990s, Gatorade dominated the market for sports drinks, a segment in which it
had been the original innovator. For decades, Coca-Cola had been a leader in marketing,
bottling, and distributing soft drinks. However these drinks did not include a sports drink.
Soon after Gatorade appeared, Coca-Cola developed and marketed its own sports drink,
Powerade. In this example, Coca-Cola
108.
Which of the following would hinder firm performance?
109.
About 20 years ago, Sturdy Light, Inc., produced a sturdy, lightweight backpack in a market
that was rapidly growing. Sturdy Light became a leader in this market. Eventually, the
backpack market reached the maturity stage and slowed down. However, by this time,
Sturdy Light had developed a strong brand name and continued to steadily lead the
market. Which of the following describes this scenario?
110.
TimeEnough Inc. entered the low-priced digital watch market several years ago. This
firm's earnings have been unsteady, but might be growing. According to the BCG growth
matrix, TimeEnough is a
