NEW
Font size
WorksheetsSMIC Finals
Total questions: 50
Worksheet time: 25mins
What does crafting a diversification strategy entail?
Creating a plan for a company to expand its operations into new products, services, or markets that are different from its current business.
Focusing solely on improving existing products within the current market.
Reducing the number of products and services offered to concentrate on core business.
Maintaining current operations without seeking new opportunities.
What is the goal of crafting a diversification strategy?
To increase risk
To reduce risk, increase growth opportunities, and strengthen competitiveness by not relying on a single market or product line
To focus only on one product line
To decrease growth opportunities
What is the first step in the process of diversification according to the image?
Analyzing the Current Business
Identifying Potential Markets
Allocating Financial Resources
Implementing Marketing Strategies
Which step involves researching potential industries, markets, or products that align with the company’s capabilities or offer promising returns?
Identifying Opportunities
Evaluating Competitors
Implementing Strategies
Monitoring Performance
Deciding on the Type of Diversification includes which of the following?
Related Diversification
Unrelated Diversification
Both A and B
None of the above
Related Diversification refers to:
Expanding into areas connected to the existing business
Entering entirely new industries
Both A and B
None of the above
Fill in the blank: Step 4 in the process is ________, which involves evaluating the costs, potential returns, market demand, and risks associated with the new venture.
Assessing Risks and Resources
Developing a Marketing Plan
Securing Funding
Launching the Product
Fill in the blank: Step 5 in the process is ________, which involves setting specific goals, timelines, resource allocations, and management structures to support the new business direction.
Developing an Implementation Plan
Conducting Market Analysis
Evaluating Financial Performance
Identifying Key Stakeholders
Fill in the blank: Step 6 in the process is ________, which involves continuously evaluating performance and making necessary changes to ensure the diversification effort is successful.
Monitoring and Adjusting
Planning and Organizing
Implementing and Executing
Reviewing and Reporting
Fill in the blank: The ________ Test states that the new industry the company wants to enter should be attractive enough to earn good profits.
Industry Attractiveness
Market Penetration
Competitive Advantage
Resource Allocation
Fill in the blank: The ________ Test states that the cost of entering the new industry should not be too high that it cancels out future profits.
Cost of Entry
Profit Margin
Market Share
Competitive Advantage
Fill in the blank: The ________ Test states that the new business should make both the parent company and the new unit stronger together than they would be separately.
Better-Off
Synergy
Profitability
Growth
What is Related Diversification? Fill in the blank: Related Diversification is when the company expands into a business that is _______ or connected to its existing one.
related
unrelated
distant
foreign
What is Unrelated Diversification? Fill in the blank: Unrelated Diversification is when the company enters a completely _______ industry from its current business.
different
similar
related
competitive
What is Geographic Diversification? Fill in the blank: Geographic Diversification is when the company expands its business to new _______ or countries.
locations
products
employees
technologies
What is diversification into related business? Fill in the blank: Diversification into related business happens when a company starts another business that has a ________ or link to its current operations. This helps the company share resources, knowledge, or customers between its businesses.
connection
barrier
conflict
distance
Which of the following companies is given as an example of diversification into related business in the food industry?
Jollibee Foods Corporation
Apple Inc.
Toyota Motor Corporation
Microsoft Corporation
Fill in the blank: Economics of Scope refers to cost savings achieved when a company uses the same ________ or capabilities to produce a variety of products.
resources
employees
locations
advertisements
Which of the following is an example of Economics of Scope?
A) A company using its factories to produce only one type of product
B) SM Group using its malls to promote banks (BDO), supermarkets (SM supermarket), and clothing stores (SM Department Store), saving on marketing and operation costs
C) A company outsourcing all its operations
D) A supermarket selling only groceries
What does 'Diversification into Unrelated Business' refer to?
Expanding a business into new industries or markets that are not related to its core competencies or products.
Focusing only on core products.
Reducing the number of products offered.
Merging with competitors.
Which of the following is an example of an international company that has diversified into unrelated business?
Ayala Corporation
SM Group
Amazon
San Miguel Corporation
Which of the following is a local company that has diversified into unrelated business?
Coca-Cola
Hyundai
Gokongwei Group
Samsung
Fill in the blank: Diversification into unrelated business refers to expanding a business into new industries or markets that are not related to its core ________ or products.
competencies
locations
employees
revenues
Which of the following lists only international companies that have diversified into unrelated business?
A) Amazon, Coca-Cola, Samsung, Hyundai, Red Bulls
B) Ayala Corporation, SM Group, San Miguel Corporation, Gokongwei Group
C) Amazon, Ayala Corporation, SM Group, Coca-Cola
D) San Miguel Corporation, Hyundai, Red Bulls, Gokongwei Group
Which company is featured in all the images shown?
eBay
Amazon.com
Walmart
Alibaba
Fill in the blank: The website shown in the bottom right image is designed for shopping and features categories such as Electronics, Baby, and Toys & Games. The name of the website is ________.
Amazon.com
eBay.com
Walmart.com
Target.com
Which of the following is NOT a category shown on the Amazon.com website in the bottom right image?
Computers & Accessories
Video Games
Health and Beauty
Groceries
The images show the evolution of Amazon.com from a small office to a large online shopping platform.
True
False
Which of the following is a retail brand under SM Investments Corporation?
SMDC
SM Appliance
Taal Vista Hotel
Goldilocks
Fill in the blank: ________ is a banking brand under SM Investments Corporation.
BDO
Metrobank
UnionBank
Security Bank
Which of the following is a property investment of SM Investments Corporation?
SM Home
Conrad Manila
Watsons
GrabPay
What is Corporate Parenting? Fill in the blank: Corporate Parenting is a strategic management approach where the corporate office adds value to its subsidiary businesses through its unique resources and capabilities. It views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across its units.
Corporate Parenting is a strategic management approach where the corporate office adds value to its subsidiary businesses through its unique resources and capabilities.
Corporate Parenting is a financial approach where the corporate office only manages the budgets of its subsidiary businesses.
Corporate Parenting is a marketing strategy focused on promoting the brand image of subsidiary businesses.
Corporate Parenting is a legal framework for ensuring compliance among subsidiary businesses.
Which company is given as an example of Corporate Parenting in the passage?
Unilever
Procter & Gamble (P&G)
Nestlé
Johnson & Johnson
Fill in the blank: The parent focuses primarily on monitoring financial performance and setting financial standards. This style of corporate parenting is called ________.
Financial Control
Strategic Planning
Operational Management
Synergy Creation
Fill in the blank: The parent actively enhances synergies and fosters cooperation between business units. This style of corporate parenting is called ________.
Strategic Planning
Financial Control
Decentralized Management
Operational Oversight
Fill in the blank: The parent uses its resources and competencies to build value directly for the subsidiaries. This style of corporate parenting is called ________.
Strategic Control
Financial Control
Operational Control
Administrative Control
What is umbrella or family branding?
A) A strategy where a single brand name is used for multiple related products
B) A strategy where each product has a unique brand name
C) A strategy for unrelated products
D) A strategy for reducing market penetration
Which company uses umbrella branding for products like iPhone, iPad, MacBook, Apple Watch, Apple TV, and Apple Music?
Procter & Gamble
Virgin Group
Apple Inc.
Samsung
Fill in the blank: Umbrella branding leverages the brand equity and reputation of the ______ brand across a range of products.
parent
local
generic
subsidiary
Umbrella branding makes it easier to introduce new products and increase market penetration.
True
False
Which of the following products is made by Apple?
Dove
iMac
Lux
Axe/Lynx
Which of the following is a Unilever product?
iPad
Apple Watch
Dove
HomePod
Which brand produces the product 'Lux'?
Apple
Unilever
Select the product that is NOT made by Unilever:
Axe/Lynx
Dove
iPad
Lux
Which of the following brands is owned by Procter & Gamble (P&G)?
Pantene
Nescafé
Maggi
KitKat
Which of the following brands is owned by Nestlé?
Gillette
Coffee Mate
Oral-B
Vicks
______ is a vaporizing ointment brand owned by Procter & Gamble.
Vicks
Tiger Balm
Icy Hot
Bengay
Which of the following is NOT a Nestlé brand?
Milo
Pantene
Maggi
Nido
What does Resource Allocation mean in a portfolio approach?
Directing capital and talent to areas with the highest potential.
Distributing resources equally among all projects.
Focusing only on short-term gains.
Ignoring market trends when investing.
What does Strategic Coherence mean in a portfolio approach?
Ensuring all units contribute to the overarching corporate vision.
Maximizing short-term profits for each business unit.
Allowing each unit to operate independently without coordination.
Focusing only on financial metrics for decision making.
