Corporate-Level Strategy

Question 1

Specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets

Answer 1

corporate-level strategy

Question 2

Cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses

Answer 2

economies of scope

Question 3

Complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise

Answer 3

corporate-level core competences

Question 4

Exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both

Answer 4

market power

Question 5

Exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets

Answer 5

multipoint competition

Question 6

Exists when a company produces its own inputs (backward integration) or owns it own source of output distribution (forward integration)

Answer 6

vertical integration

Question 7

Cost savings realized through improved allocations of financial resources based on investments inside or outside the firm

Answer 7

financial economies

Question 8

Exists when the value created by business units working together exceeds the value that those same units create working independently

Answer 8

synergy