Chapter 6

Question 1

strategy that focuses on gaining long-term revenue, profits, and market value through managing operations in multiple businesses

Answer 1

corporate-level strategy

Question 2

process of firms expanding their operations by entering new businesses

Answer 2

diversification

Question 3

firm entering a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power

Answer 3

related diversification

Question 4

cost savings from leveraging core competencies or sharing related activities among businesses in a corporation

Answer 4

economies of scope

Question 5

firm’s strategic resources that reflect the collective learning in the organization

Answer 5

core competencies

Question 6

having activities of two or more businesses’ value chains done by one of the businesses

Answer 6

sharing activities

Question 7

firms’ abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment

Answer 7

market power

Question 8

exit of a business from a firm’s portfolio

Answer 8

divestment