战略管理第六章作业.docVIP

Chapter 6—Corporate-Level Strategy TRUE/FALSE 1. In 2005, Gillette was acquired by Proctor Gamble (PG). This is an example of business level strategic action initiated by PG. 4. A major advantage of diversification is that overall monitoring costs are reduced, since each separate business comes under the control of corporate headquarters. 5. Successful product diversification is expected to increase the variability in the firm’s profitability, since the earnings are generated from several different business units. 11. Blocking competitors through multipoint competition is a strategy used by related diversified firms to create value. 12. PepsiCo uses its own distribution system to deliver multiple Pepsi branded beverage products. Pepsi recently acquired Gatorade and delivers these products using the Pepsi distribution system. This use of Pepsi’s outbound logistics is an example of activity sharing. 13. PG acquired Gillette Co. and created the Crest Pro-Health label by combining PG’s Crest with Gillette’s Oral-B brands. This is an example of achieving synergies through sharing activities. 15. In a money-making effort, a small private university has decided to institute consulting services using its business faculty as consultants whose services would be sold to clients. This university is attempting to use its faculty to gain economies of scope. 16. When firms share activities across units, they are often able to achieve increased value. 21. Vertical integration exists when a company produces its own inputs (forward integration) or owns its own source of output distribution (backward integration). 26. Virtual integration tends to erode the relationships between suppliers and customers as personal contacts are replaced with impersonal electronic communications. 29. An unrelated diversification strategy can create value through two types of financial economies, (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their ass