Ba 462 6-10

11372 WordsJun 9, 201246 Pages
Bottom of Form (list card numbers separated by commas i.e. 1,5,23,90) In the chapter Opening Case, the sharing of marketing and distribution in the beer and wine business at Foster’s Group was intended to create ______. a. financial economiesb. vertical integrationc. economies of scoped. conglomerate discount | c. economies of scope (p.157) | As noted in the Opening Case, in order to create synergy between its wine and beer business, Foster’s Group used the same sales force to sell mass market beer, cheap spirits, and premium wine. The sharing of these activities resulted in ______. a.increased profitsb. failurec. financial economiesd. unrelated diversification | b. failure (p.157) | In the Opening Case, Foster’s Group…show more content…
unrelated | d. unrelated (p.161) | Which of the following reasons for diversification is most likely to increase the firm’s value? a. increasing managerial compensationb. reducing costs through business restructuringc. taking advantage of changes in tax lawsd. conforming to antitrust regulation | b. reducing costs through business restructuring (p.162) | Which of the following is a value-reducing reason for diversification? a. enhancing the strategic competitiveness of the entire companyb. expanding the business portfolio in order to diversify managerial employment riskc. gaining market power relative to competitorsd. conforming to antitrust regulation | b. expanding the business portfolio in order to diversify managerial employment risk (p.161) | Firms that have selected a related diversification corporate-level strategy seek to exploit a. control shared among business-unit managers.b. economies of scope between business units.c. the favorable demand of buyers.d. market power. | b. economies of scope between business units. (p.163) | In the Opening Case, Foster’s Group sought to create _____between the beer and wine businesses. a. corporate relatednessb. operational relatednessc. transferring core competenciesd. financial economies | b. operational relatedness (p.163) | Procter & Gamble (P&G) has a paper towel and baby diaper business, both of which use paper products. The firm’s paper production plant produces inputs for

More about Ba 462 6-10

Open Document