Is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant positive change?

QuizCC MGMT 449 Chapter 6 Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. This is action is known as ______.

Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. This is action is known as ______.

Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. This is action is known as ______. 

A. parenting

B. leveraging core competencies

C. restructuring

D. sharing activities

Answer: C

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  • School University of Texas, Arlington
  • Course Title MANA 4322
  • Uploaded By Mohammadz97
  • Pages 47
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68)________ diversification is when a firm enters a different business that has little horizontalinteraction with other businesses of a firm.A)HorizontalB)SynergisticC)RelatedD)Unrelated

69)________ is when the corporate office helps subsidiaries make wise choices in their ownacquisitions, divestures, and new ventures, thereby creating value within business units.

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70)Diversified public corporations such as Berkshire Hathaway and Virgin Group are examplesof companies that create value using

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71)________ is when a firm tries to find and acquire either poorly performing firms withunrealized potential or firms in industries on the threshold of significant, positive change,thereby creating value within business units.

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72)According to the text, corporate restructuring includes20

A)capital restructuring, asset restructuring, and technology restructuring.B)capital restructuring, asset restructuring, and management restructuring.C)management restructuring, financial restructuring, and procurement restructuring.D)global diversification, capital restructuring, and asset restructuring.

73)Asset restructuring involves the sale of ________ assets, or even whole lines of businessesthat are peripheral.

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74)Capital restructuring involves changing the ________ mix.

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75)Management restructuring typically involves changes in the composition of the ________,organizational structure, and reporting relationships.

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76)Common steps in management restructuring include all the followingexceptA)tight financial control.B)rewards based on meeting short- to medium-term performance goals.C)penalties for missing short- to medium-term performance goals.D)reduction in the number of middle-level managers.

77)Portfolio management matrices are applied to what level of strategy?

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78)Research shows that a key competence of high-performance diversified firms is the ability to

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When firms diversify into unrelated businesses the primary potential benefits are?

When firms diversify into unrelated businesses, the primary potential benefits are horizontal relationships (i.e. businesses sharing tangible and intangible resources).

What are the three requirements for a core competence to become the basis of strengthening a business unit?

3 key characteristics of a core competency It must provide superior value (e.g., benefits) to the customer or consumer. It should provide potential access to a wide variety of markets. It should not be easy to replicate or imitate.

Which of the following is a reason for merger and acquisition failures quizlet?

Which of the following is a reason for merger and acquisition failures? Answer: Top executives act in their best interests rather than those of the shareholders. Research shows that the vast majority of acquisitions result in value destruction rather than value creation.

What are the primary means by which a firm can diversify?

A company can diversify its operations by either acquiring another company or merging with a company with a different line of business. Related diversification involves diversifying into products or services where a company already runs an existing business or into businesses with some commonalities.