Managers often are motivated to pursue diversification to increase firm size, make it difficult for outsiders to evaluate managers’ performance, and reduce the firm’s exposure to unfavorable environmental shifts in any given market. As a result, in the short-term, product diversification can increase overhead, often reduces managerial employment risk, and may increase managerial compensation. From the shareholders’ perspective, such motives usually are __________.
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Assume one firm is engaging in substantial downsizing, while…
Assume one firm is engaging in substantial downsizing, while another is engaging in substantial downscoping. All else equal, which of the following statements is most likely correct?
As Walker (2018) argued, acquisition integration processes c…
As Walker (2018) argued, acquisition integration processes can be challenging. Which of the following is true of integration?
Beamish (2017) and Hoang and Rothaermel (2016) discuss the i…
Beamish (2017) and Hoang and Rothaermel (2016) discuss the importance of value capture, which often is a function of bargaining power, in alliances. Which of the following is true of bargaining power in alliances?
Structuring involves ________, bundling involves ________, a…
Structuring involves ________, bundling involves ________, and leveraging involves ________.
Market segmentation processes break down ________ markets in…
Market segmentation processes break down ________ markets into smaller groups using demographic, socioeconomic, and similar variables, and market segmentation processes break down ________ markets into smaller groups based on industry, product features, etc.
Which of the following is NOT a source of economies of scale…
Which of the following is NOT a source of economies of scale?
Firms are likely to consider one another to be rivals when m…
Firms are likely to consider one another to be rivals when market commonality is _______ and resource similarity is _______.
Devine and Holmes (2020) argued that firms usually allocate…
Devine and Holmes (2020) argued that firms usually allocate their political spending equally across all government jurisdictions.
Assuming that one seeks to maximize economic value, the ulti…
Assuming that one seeks to maximize economic value, the ultimate test of the value of a corporate-level strategy is whether the _______.