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Business Marketing (MAR4453) Bsg Chapter Quizzes Part 2

Sandra Watson
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University of South Florida

Business to Business Marketing (MAR4453)

1. The top-level executive task of crafting a diversified company’s overall or corporate strategy
includes which one of the following?
 Picking new industries to enter and deciding whether to enter the industry y starting a new
business from the ground up, acquiring a company already in the target industry, or forming a
joint venture or strategic alliance with another company
 Choosing the most appropriate value chains for each of the company’s businesses
2. Based on the information presented in Figure 8.1, which of the following would not be
something to look for in identifying a diversified company’s strategy?
 Actions over past few years to substitute global strategies for multi-country strategies in one or
more business units
3. Diversification merits strong consideration whenever a single-business company
 Encounters diminishing prospect for continued good performance in its present business
because worsening industry conditions and/or other important factors are making the industry
long-term outlook unattractive
4. For there to be reasonable expectations of producing added long-term shareholder value, a
move to diversify into a new business must pass which following tests?
 The industry attractiveness test, the cost-of-entry test, and the better-off test.
5. Businesses are said to be “related” when
 they possess competitively valuable cross-business value-chain matchups.
6. Strategic fit between two or more businesses exists whenever one or more activities comprising
the value chains of different businesses are sufficiently similar to present opportunities
 for cross-business use of a potent brand name and/or cross-business collaboration to build new
or stronger competitive capabilities
 Transfer competitive value resources and capabilities from one business to enhance
competitiveness and performance of a sister business and/or combine closely related value
chain activities of separate businesses into a single operation to achieve lower cost
7. Diversifying into related businesses where competitively valuable strategic fit benefits can be
captured and turned into a competitive advantage over business rivals whose operations do not
offer comparable strategic-fit benefits
 is what fuels 1+1=3 gains in shareholder value–the necessary outcome for satisfying the betteroff test and proving the business merit of a company’s diversification effort.
8. The basic premise of unrelated diversification is that
 any company that can be acquired on good financial terms and that has satisfactory growth and
earnings potential represents a good acquisition and a good business opportunity.
9. Which of the following is not one of the appeals of an unrelated diversification?
 It is quicker and easier to build a competitive advantage over undiversified or less diversified
10. Which of the following are negatives or disadvantages of pursuing unrelated diversification
 No potential for competitive advantage beyond any benefits of corporate parenting and what
each individual business can generate on its own
 Demanding managerial requirements



Business Marketing (MAR4453) Bsg Chapter Quizzes Part 2

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