This document contains 15 multiple choice questions about corporate level strategy concepts including: - Types of corporate level decisions regarding portfolio management, scope, and adding value to businesses - Advantages and disadvantages of integration strategies - Tools for assessing strategic options like Ansoff's Matrix and portfolio matrices - Definitions of concepts like related and unrelated diversification, horizontal integration, and Peters and Waterman's idea of "sticking to the knitting"

1. Chapter 8<br />Corporate Level Strategy<br />Question 1 <br />A decision made at the business level of a firm would be:<br />a) The degree of synergy between the businesses in the portfolio <br />b) Which industries to enter <br />c) How to compete in a given market <br />d) How to add value to the businesses in the portfolio <br />Question 2 <br />At corporate level, the scope of an organization relates to: <br />a) The breadth of the portfolio of SBUs <br />b) The number of SBUs <br />c) The size of the SBUs <br />d) The number of customers served <br />Question 3 <br />Substantial changes to the range of offerings or the markets served or both are known as: <br />a) Differentiation <br />b) Diversification <br />c) Relocation <br />d) Brand extension <br />Question 4 <br />Which of the following outcomes is not an advantage of a completely vertically integrated business?<br />a) Potentially greater control is achieved <br />b) Potentially greater quality is achieved <br />c) Lowering of risk is achieved <br />d) Lower price of supplies is achieved <br />Question 5 <br />'Synergy' can best be explained by which of the sums below?<br />a) 2+2=5 <br />b) 2+2=4 <br />c) 2-2=1 <br />d) 2-2=0 <br />Question 6 <br />The Boston Group Portfolio Matrix is used to assess:<br />a) The size of a portfolio of businesses <br />b) The extent to which the corporate centre can add value to the businesses <br />c) The balance of the portfolio of businesses <br />d) The scope of the portfolio <br />Question 7 <br />The Ashbridge Portfolio matrix is used to assess whether:<br />a) The businesses are a good fit with the parent company <br />b) The portfolio is balanced <br />c) The portfolio has opportunities for synergies <br />d) The portfolio is too diversified <br />Question 8 <br />In the Ashbridge Portfolio matrix, a business that the parent understands but doesn't add any value to is known as: <br />a) A heartland business <br />b) An alien business <br />c) A value trap business <br />d) A ballast business <br />Question 9 <br />When evaluating a strategic option a firm can test the option against the criteria of suitability, feasibility and acceptability. Suitability in this context means:<br />a) The strategy satisfies the shareholders <br />b) The strategy will work in practice because it has the necessary resources and capabilities <br />c) The strategy is consistent with the strengths, weaknesses, opportunities and threats identified in the strategic analysis <br />d) The strategy satisfies the relevant stakeholders <br />Question 10 <br />Ansoff's growth vector matrix is used for:<br />a) Analysing the different strategic directions an organization can pursue <br />b) Analysing the balance of the portfolio <br />c) Assessing whether the corporate parent is adding value <br />d) Assessing the market share of a business <br />Question 11 <br />In Ansoff's matrix, 'product development' involves going in the direction of: <br />a) Present products to present markets <br />b) Present products to new markets <br />c) New products to present markets <br />d) New products to new markets <br />Question 12 <br />Horizontal integration is where:<br />a) A firm takes over a supplier <br />b) A firm takes over a distributor <br />c) A firm takes over a competitor <br />d) A firm takes over a manufacturer <br />Question 13 <br />Conglomerate diversification is another name for:<br />a) Unrelated diversification <br />b) Related diversification <br />c) Portfolio diversification <br />d) Acquisition diversification <br />Question 14 <br />Which of the following statements is true when describing the merits of related and unrelated diversification?<br />a) Unrelated diversification has been shown to be more successful <br />b) Related diversification has been shown to be more successful <br />c) The evidence on diversification strategies is contradictory <br />d) Related diversification is more successful up to a certain size of corporation <br />Question 15 <br />What did Peters and Waterman (1982) mean when they implored businesses to 'stick to the knitting'?<br />a) Corporations should strip down to core activities <br />b) Corporations follow low risk diversification strategies <br />c) Corporations should follow the same generic strategy across all businesses <br />d) Corporations should have a balanced portfolio <br />