Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Corporate-Level Strategy: Creating Value Through Diversification

True or False


1	The primary potential benefits of firms diversifying into unrelated businesses are horizontal relationships, i.e., businesses sharing tangible and intangible resources.
		A)	TRUE
		B)	FALSE


2	Sharing activities among business units can have a positive effect on a given business' differentiation - as in the example of Daimler-Benz's acquisition of Chrysler.
		A)	TRUE
		B)	FALSE


3	A publishing company that acquires a chain of bookstores to sell its books is an example of related diversification.
		A)	TRUE
		B)	FALSE


4	Restructuring necessitates the corporate office to find either firms in industries on the threshold of significant, positive change or poorly performing firms with unrealized potential.
		A)	TRUE
		B)	FALSE


5	Firms can directly acquire the assets and competencies of other firms through joint ventures.
		A)	TRUE
		B)	FALSE


6	Reliance on written contracts to delimit responsibilities and enforce compliance is imperative for strategic alliances to be effective.
		A)	TRUE
		B)	FALSE


7	When a company, threatened by takeover, offers its stock at a reduced price to a third party it is called greenmail.
		A)	TRUE
		B)	FALSE

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