Business Acquisitions and Divestitures Quiz

<p>It resulted in a substantial financial loss and almost caused bankruptcy. (D)</p> Signup and view all the answers

<p>The ability to constantly innovate and launch new products to meet changing consumer demands. (A)</p> Signup and view all the answers

<p>Unilever (C)</p> Signup and view all the answers

<p>2005 (B)</p> Signup and view all the answers

<p>PepsiCo (D)</p> Signup and view all the answers

<p>Consumer healthcare (D)</p> Signup and view all the answers

<p>Entering new markets (C)</p> Signup and view all the answers

<p>A company selling off a portion of its business (A)</p> Signup and view all the answers

<p>BtB hardware (B)</p> Signup and view all the answers

<p>Divestiture involves selling a part of the company, while splitting involves creating completely independent companies. (C)</p> Signup and view all the answers

<p>Less than 2 (B)</p> Signup and view all the answers

<p>10% (A)</p> Signup and view all the answers

<p>Diversifying (D)</p> Signup and view all the answers

<p>Expanding into new geographic markets (B)</p> Signup and view all the answers

<p>Higher marketing expenses (B)</p> Signup and view all the answers

<p>Tilburg University (C)</p> Signup and view all the answers

<p>Corporate Strategy (B)</p> Signup and view all the answers

<p>To illustrate the distribution of firms based on their number of businesses (D)</p> Signup and view all the answers

<p>1 (B)</p> Signup and view all the answers

<p>January 18th, noon (D)</p> Signup and view all the answers

<p>Ahold (C), Nestle (D)</p> Signup and view all the answers

<p>go.uvt.nl/escp2025 (C)</p> Signup and view all the answers

<p>Creating added value across businesses and markets (C)</p> Signup and view all the answers

<p>How to effectively train new employees for specific roles? (D)</p> Signup and view all the answers

<p>Meta-analysis of 16 studies from 1974-2013 (B)</p> Signup and view all the answers

<p>What marketing channels should be used? (D)</p> Signup and view all the answers

<p>Acquisition of Kansas City Southern by Canadian Pacific Railway (A)</p> Signup and view all the answers

<p>Catch-up Acquisitions are more about altering a firm's strategy while Bolt-on Acquisitions are about improving existing operations. (B)</p> Signup and view all the answers

<p>Google's Acquisition of Android Inc (A)</p> Signup and view all the answers

<p>It represents the diverse range of acquisitions a company might undertake, each with its own characteristics. (B)</p> Signup and view all the answers

<p>Gaining purchasing power through consolidation (C)</p> Signup and view all the answers

<p>They often involve significant technological advancements that redefine the company's core business. (B)</p> Signup and view all the answers

<p>Samsung's acquisition of Harman (A)</p> Signup and view all the answers

<p>To highlight that the acquisitions were driven by financial motives rather than strategic reasons. (A)</p> Signup and view all the answers

<p>To demonstrate the various types of corporate acquisitions and their impact on business growth. (A)</p> Signup and view all the answers

<p>Apple's Acquisition of Beats Music (A)</p> Signup and view all the answers

<p>Developing a new product line that requires unique components (C)</p> Signup and view all the answers

<p>A software company acquiring a hardware manufacturer (A)</p> Signup and view all the answers

<p>Reduced input costs (A)</p> Signup and view all the answers

<p>By using the same resources to produce multiple products or services (A)</p> Signup and view all the answers

<p>Developing a new product line that is highly differentiated from existing products (D)</p> Signup and view all the answers

<p>Horizontal expansion focuses on increasing market share within the same industry, while vertical expansion aims to control different parts of the value chain (A)</p> Signup and view all the answers

<p>By developing a strong brand image and positive customer experiences (B)</p> Signup and view all the answers

<p>A strong brand reputation and customer loyalty (C)</p> Signup and view all the answers

<p>By offering customers additional products or services that complement their initial purchase (C)</p> Signup and view all the answers

<p>Because it allows the company to charge higher prices for its products or services (A)</p> Signup and view all the answers

<p>Scale economies allow companies to spread fixed costs over a larger number of units, reducing the cost per unit (A)</p> Signup and view all the answers

<p>By addressing inefficiencies in the market that prevent customers from getting the products they need (A)</p> Signup and view all the answers

<p>Developing new products that are more efficient to manufacture (A)</p> Signup and view all the answers

<p>By building a strong brand reputation and customer loyalty (C)</p> Signup and view all the answers

<p>Increased profits due to lower input costs (C)</p> Signup and view all the answers

<p>A food manufacturer acquiring a distributor network (B)</p> Signup and view all the answers

The middle value of firms that are among the Forbes Top 500 list, which is less than 2.

The average number of businesses in the Forbes Top 500, which is 2.72.

1 firm makes up 29% of the total in the Forbes list.

Growth strategy focusing on increasing market share by expanding the same business activity up or down the supply chain.

Strategy to expand by adding new business activities at the same level of the value chain.

Strategy of expanding into new geographic markets outside the home country.

Lower input costs, lower production costs, and higher revenues drive businesses to expand.

The three main methods to expand are Build, Blend, and Buy.

Skills and non-physical assets that contribute to value in economies.

The additional amount consumers are willing to pay for a product due to its perceived value.

The ability of a company to influence the price of goods and services in the market.

Encouraging customers to purchase more expensive items than they initially intended.

The maximum price consumers are willing to pay for a product.

Selling additional products to existing customers based on their previous purchases.

The impact of a company's reputation on its sales and pricing strategies.

Cost advantages achieved by producing multiple products together efficiently.

Cost advantages that businesses achieve due to expansion and increased production.

Businesses or individuals that provide the resources needed for production.

Costs that do not change regardless of production levels.

Total expenses incurred in manufacturing a product or providing a service.

Expenses incurred to acquire the resources needed for production.

Situations where market outcomes are not efficient, leading to a loss of economic value.

The series of steps that a company goes through to deliver a product or service.

Philip Morris raised its market share from 4% to 21% in 15 years.

In 1978, Philip Morris acquired 7-Up to enter the soft drinks market.

High marketing investments were crucial for Philip Morris to promote its products, especially in soft drinks.

Philip Morris targeted a similar consumer base for tobacco and soft drinks: adults and families.

Philip Morris's market share in soft drinks stagnated around 7% from 1979 to 1986 after acquiring 7-Up.

The management of a firm's overall direction to create added value across businesses.

The process of increasing the worth of a product or service through various strategies.

A company that operates in multiple industries or sectors to spread risk and increase opportunities.

Strategies a company uses to grow its business by entering new markets or increasing its product range.

Resources and properties owned by a company that contribute to its ability to produce value.

The arrangement and coordination of tasks and resources in a company to achieve efficiency and effectiveness.

Different approaches a firm can use to enter new markets or expand their business operations.

Advantages gained from corporate strategies that enhance a firm's competitive position.

Acquisitions made to enhance existing business operations.

Reducing expenses by merging business entities.

Boosting income through the merger of companies.

Acquisitions aimed at improving a firm's strategy and operations.

Apple's acquisition of Beats Music in 2014.

Purchases that alter the core business model.

Microsoft purchased LinkedIn for $26.2 billion to enter social networking.

Coca-Cola acquired Costa Coffee to expand into retail.

Google acquired Android Inc. to develop the Android operating system.

Johnson & Johnson plans to separate its consumer products and pharmaceutical divisions into two companies.

General Electric to divide into three companies concentrating on aviation, healthcare, and energy.

PepsiCo agreed to sell its Tropicana and other juice brands for $3.3 billion.

Kellogg to split into three independent companies for snacks, cereal, and plant-based foods.

Sanofi plans to list its consumer healthcare business to concentrate on innovative drugs.

Selling off original business divisions that are no longer aligned with company goals.

Unilever agreed to sell its declining margarine business to KKR for $8 billion due to reduced demand.

IBM announced the divestiture of its server division, showcasing the trend of tech realignment.