MGT498 Week 4 Quiz
- Which of the following best illustrates backward vertical integration?
- An inverted U-shaped relationship between the type of diversification and overall firm performance indicates that
- North Carolina National Bank (NCNB) used its unique core competency of identifying, appraising, and integrating acquisition targets to be rebranded as Bank of America, one of the largest banks in the United States. This is an example of a firm
- Firms often consolidate industries through horizontal mergers and acquisitions to
- Which of the following is an example of explicit knowledge?
- What happens in the third phase of alliance management?
- The executives of Night Sky Inc., a large conglomerate, are making decisions on the stages of the industry value chain the firm must participate in, the range of products and services it should offer, and the global markets it should compete in. What are the executives primarily determining?
- The purchase or takeover of one company by another is a(n)
- Highly diversified firms experience a diversification discount in the stock market because they
- Sequoia Inc., a large multinational conglomerate, has hired an external consultant to process and audit its payroll. This allows the company to focus on manufacturing and marketing activities rather than developing and maintaining its own human resource management systems. Which of the following alternatives to vertical integration has Sequoia Inc. adopted?
- The starting point of the build-borrow-or-buy framework is management’s
- The management at Just Right Autos Inc. and Blue Skies Automobiles Inc. realized that by combining the two entities, the stakeholders of both the companies would benefit. Their core competencies would act as complementary assets to each other. Consequently, Blue Skies Automobiles joined with Just Right Autos to form a combined entity called Just Blue Autos Inc. Which of the following does this scenario best illustrate?
- Gerda, a real estate agent, is selling a moderately priced house in a subdivision. She knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. A buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses Gerda is selling, and within a short time, the deal goes through. What does this scenario best illustrate?
- HTC started as an original equipment manufacturing firm (OEM) for brand-name mobile device companies. Later, it started offering a line up of innovative and high-performance smartphones by acquiring One & Co., a San Francisco-based design firm. This strategic move of HTC is known as
- The local real estate companies in a city have joined together and arranged a “Property Fair.” The sponsors will equally share the expenses of the event. Though many companies compete against each other, they have joined together because the medium will help the companies market themselves through a dedicated forum at an extremely low cost. This arrangement is best referred to as
- Which of the following best illustrates horizontal integration?
- Which of the following is an example of related-constrained diversification?
- Which of the following is an example of internal transaction costs?
- The rationale behind related diversification is to
- A non-equity alliance is the most common type of strategic alliance because
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