Week 5 - Ch. 8

Question 1

Ansoff’s growth matrix

Answer 1

is a classic corporate strategy framework for generating four basic directions for organisational growth (

Question 2

BCG matrix

Answer 2

uses market share and market growth criteria to determine the attractiveness and balance of a business portfolio

Question 3

diversification (related and unrelated/conglomerate)

Answer 3

increasing the range of products or markets served by an organization

Question 4

dominant logic

Answer 4

the set of corporate-level managerial competences applied across the portfolio of businesses

Question 5

economies of scope

Answer 5

efficiency gains made through applying the organization’s existing resources or competences to new markets or services

Question 6

outsourcing

Answer 6

activities that were previously carried out internally are subcontracted to external suppliers

Question 7

parental developer

Answer 7

seeks to employ its own central capabilities to add value to its businesses

Question 8

parenting advantage

Answer 8

is the value added to businesses by corporate-level activities

Question 9

portfolio manager

Answer 9

he or she operates as an active investor in a way that shareholders in the stock market are either too dispersed or too inexpert to be able to do so

Question 10

synergy

Answer 10

the benefits gained where activities or assets complement each other so that their combined effect is greater that the sum of their parts

Question 11

synergy manager

Answer 11

is a corporate parent seeking to enhance value for business units by managing synergies across business units

Question 12

vertical (forward and backward) integration

Answer 12

entering into activities where the organization is its own supplier or customer