Quiz

1. If you’re asking whether the focal company should build strategic alliances with other companies, you’re in ____

a. Corporate level strategy.

b. Business level strategy

c. The Strategy Implementation stage.

d. The external analysis stage

e. The competitive advantage stage.

2. When companies are determining whether it is a good idea to vertically integrate or not (advantage or disadvantage of vertical integration), they should determine if the decision helps them with all of the following, EXCEPT:

f. Manage opportunism

g. Gaining bigger market share.

h. Leverage their capabilities

i. Promote flexibility

j. All of the above are reasons to vertically integrate.

3. Corporate diversification and vertical integration are ____.

k. Marketing strategies

l. Functional level strategies

m. Economies of scale

n. Two of the five forces

o. Corporate level strategies

4. You have information that a buyer can vertically integrate backward (not forwards ). That tells you that _________________ is likely to be strong.

p. The threat of powerful buyers

q. The threat of powerful suppliers

r. Rivalry

s. The threat of new entrants

t. None of the above.

5. In a ________ merger, firms acquire complementary markets through their merger and acquisition activities.

u. vertical

v. market extension

w. product extension

x. horizontal

6. In order to benefit more from a M&A transaction, the target firm should do all of the following EXCEPT:

y. Delay, but do not stop the transaction

z. Seek information from bidder

{. Avoid bidding wars

|. Invite other bidders to join in bidding contest

}. All of above are things that the target firm should do

7. Vertical integration used to create value should be managed through the

~. M-form structure.

....