Management of Strategy Chap 5 - 9

•Firms are mutually interdependent when:

• –a firm’s competitive actions have noticeable effects on its competitors.

• –a firm’s competitive actions elicit competitive responses from its competitors.

• –competitors feel each other’s actions and responses.

• All of that

•Market commonality is concerned with the:

• I number of markets with which a firm and a competitor are jointly involved

• II degree of importance of the individual markets to each competitor

• number of markets with which a firm and a competitor are different

• I and II only

What are the drivers of competitive behaviour?

• Awareness, Motivation, Ability, Market Commonality, Resource Dissimilarity

• Awareness, Management, Ability, Market Commonality, Resource Dissimilarity

• Awareness, Motivation, Ability, Market Comparatively, Resource Dissimilarity

• Awareness, Motivation, Ability, Market Commonality, Resource Similarity

Factors Affecting Strategic Response

• Types of competitve action

• Actor's Reputation

• Market Dependence

• All of that

What are the reaons for diversification?

• Value-creating

• Value-Neutral

• Value-reducing

• All of that

•Firms create value by building upon or extending:

• –resources

  –capabilities

  –core competencies

• capabilities

  –core competencies

• core competencies

• resources

  –capabilities

What are the internal incentives to diversify?

• Low performance

• Uncertain future cash flow

• Synergy and firm risk reduction

• All of that

When two firms agree to integrate their operations is called as
on a relatively co-equal basis.

• Merger

• Acquisition

• Takeover

• Buy over

When one firm buys a controlling, or 100%, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio.

• Merger

• Acquisition

• Take over

• Buy over

"Acquisition of a firm in the same industry in which the acquiring firm competes increases a firm’s market power by exploiting: –Cost-based synergies –Revenue-based synergies" is referred to as:

• Horizontal acquisition

• Vertical acquisition

• backward acquisition

• forward acquisition