QUESTION 1 The main purpose of a portfolio planning matrix is to: [See p.363] Locate potential synergies between busines

[answerhappygod]

QUESTION 1
The main purpose of a portfolio planning matrix is to:
[See p.363]
Locate potential synergies between businesses
Forecast the future performance of the different businesses
Evaluate the group’s marketing position relative to its
rivals
Represent graphically the different businesses in terms of key
strategic variables that determine their potential for profit
1 points
QUESTION 2
Which of the following is not a key difference between
a multidivisional company and a holding company?
[See p.385]
Multidivisional companies have a centralized treasury; holding
companies do not.
The parent of a holding company appoints the boards of directors
of its subsidiaries; the HQ of a multidivisional company directly
appoints divisional managers.
The subsidiaries of a holding company are responsible for their
own financing decisions; the divisions of a multidivisional company
need only to consider their credit ratings.
Multidivisional corporations typically have a single, integrated
strategic planning process; holding companies do not.
1 points
QUESTION 3
Although sharing resources among the different businesses within
the multibusiness corporation can offer substantial cost economies,
these savings are often offset by:
[See pp.368-369]
Internal conflicts between divisional managers.
The need for each business to have resources and facilities that
are specialized to its own requirements.
The costs of coordinating such resource sharing.
The unwillingness of each business to pay for the maintenance of
common resources.
1 points
QUESTION 4
A major limitation of the BCG matrix in guiding corporate
strategy is:
[See p.365]
The assumption that each business has synergistic links with
every other business within the portfolio.
Business’ market shares and growth rates are difficult to
measure.
Neither market growth nor relative market share is reliable
indicators of a businesses’ future profitability.
Its long history renders it obsolete.
1 points
QUESTION 5
Corporate governance is:
[See p.381]
The way a firm is organized
The way a firm makes decisions
The system by which the top management of a firm is directed and
controlled
The way a firm appoints and replaces its CEO
1 points
QUESTION 6
IBM and Samsung Electronics are examples of large, mature
corporations that have:
[See pp.379-380]
Sustained their positions as two of the world’s most innovative
companies in terms of patents awarded and new products
launched.
Developed corporate systems that promote large-scale strategic
change and the development of major new areas of businesses.
Demonstrate the potential of large established companies rich in
complementary resources to outperform technology-based
start-ups.
Demonstrate that strong leadership and centralized decision
making is the key to corporate success during turbulent times.
1 points
QUESTION 7
The principal mechanisms through which the corporate
headquarters seeks to improve the strategic and operational
management of its businesses are:
[See pp.370-376]
Management development activities
Providing corporate services
Creating strong financial incentives for business unit
managers
Direct involvement in business-level management, strategic
planning, and performance management and financial control
1 points
QUESTION 8
The type of corporate strategy through which most leading
private equity groups such as Carlyle Group, Kohlberg Kravis
Roberts, and Blackstone create value for their investors is best
described as:
[See p.371]
Portfolio management
Restructuring
Transferring skills
Sharing resources
1 points
QUESTION 9
The concept of “parenting advantage” is best summarized by the
following statement:
[See p.365]
Corporate managers should emulate the role and skills of good
parents in disciplining their children
The primary criterion for a company’s continued ownership of a
business is its ability to add more value than alternative
corporate parent
The primary role of corporate management is to coach business
management
The ultimate measure of success for a multibusiness company is
to develop successful new businesses
1 points
QUESTION 10
Portfolio planning techniques, (also called portfolio matrixes),
contribute to the following corporate management function:
[See pp.363-365]
Allocating resources among businesses
Selecting diversification opportunities
Formulating competitive strategies for individual businesses
Establishing performance targets for each business