WorksheetsKnowledge Manager - Business Intl Strategy
Total questions: 17
Worksheet time: 10mins
A Firm diversify by INTERNAL and OFFENSIVE when they want to
Deploy resources to deter entry Signal commitment
Leverage a core competence or valuable recource
Acquire resources and Take advantage of opportunities
Respond to a threat
A Firm diversify by INTERNAL and DEFENSIVE when they want to
Deploy resources to deter entry Signal commitment
Leverage a core competence or valuable recource
Acquire resources and Take advantage of opportunities
Respond to a threat
A Firm diversify by EXTERNAL and OFFENSIVE when they want to
Deploy resources to deter entry Signal commitment
Leverage a core competence or valuable recource
Acquire resources and Take advantage of opportunities
Respond to a threat
A Firm diversify by EXTERNAL and DEFENSIVE when they want to
Deploy resources to deter entry Signal commitment
Leverage a core competence or valuable recource
Acquire resources and Take advantage of opportunities
Respond to a threat
Initial diversification often occurs...
As a part of a deliberate plan
Because a bigger corporation buy you
Incidentally
When CEO is replaced
PORTER'S TEST OF DIVERSIFICATION - PREMISES OF CORPORATE STRATEGY (3 options are correct)
Shareholders can readily diversify themselves
Diversification helps to cut costs at business units
Diversification inevitably adds costs and constraints to business units
Competition occurs only at the business unit level
KEY points of DIVERSIFICATION (2 options are correct)
The drivers for diversification are very easy to use and accessible for companies
The difficulty of horizontal diversification is very often underestimated and can be deadly for firms
It is highly recommended to Listed Companies to use diversification, no matter which area or sector they are
More generally markets facing institutional or market failures may create a context where diversification is more attractive and feasible
What are the responsabilities of a CEO? (2 options are correct)
Overall success of a business entity or other organization and for making top-level managerial decisions.
Overseeing the day-to-day administrative and operational functions of a business
Leading the development and execution of long-term strategies, with the goal of increasing shareholder value.
Tracking cash flow and financial planning and analyzing the company's financial strengths and weaknesses
Corporate governance is...
The department in a company that cares about politics
The system by which companies are directed and controlled
Where the CFO is reporting
Where independent counselors and advisors are allocated
The fundamental objective of corporate governance is...
To control the CEO and Management to follow the corporate decisions
Just as an external advisor for the company
To boost and maximize shareholder value and protect the interest of other stakeholders
To increase the company value for being sold in 3 years
What is a board of Directors?
Is an elected group of individuals that represent shareholders
Is the group of Managers of a company (CFO, CMO, COO...)
Is the group of Managers that the CEO decides
Is the group of managers that has shares of the company only
What is the Board of Directors doing?
They are full time employees of the company and their role is taking decisions on daily basis
Advising the CEO on how to invest money in other business
Doing the financial reports every year and defining next year strategy
Is a governing body that typically meets at regular intervals to set policies for corporate management and oversight
Which companies MUST have a Board of Directors?
Private companies
Nonprofit organizations
Public companies
Family business
How is a Board of Directors Structure?
It includes all the Managing positions of the company with Internal positions only
Should be a representation of External members and the CEO of the company
Should be a representation of both management and shareholder interests and include both internal and external members.
It is not structured, every company define it without any general rule
A FAMILY-OWNED Business may be defined as... (more than one option might be correct)
A company owned 100% by the family
Any business in which two or more family members are involved
The majority of ownership or control lies within a family
A company that belongs to one family only with maximum of 3 generations
What is the largest family owned company in the world?
Volkswagen AG
Berkshire Hathaway Inc
Walmart Inc
Exor NV
What is the main Xavier Mir professional activity now?
CEO of Affinity
CEO of Flamagas
Working as Independent director/counsellor for different companies
Working as Independent director/counsellor for Family Owned companies only
