Corporate Strategy and Diversification Quiz
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Questions and Answers

When is the deadline for submitting coursework parts A and B?

  • March 24th at 12:00 (correct)
  • May 2nd at 14:30-16:30
  • March 16th from 18:00-19:00
  • No deadline mentioned

    • What is the topic of the week 10 lecture?

  • Reading the case 'CRH plc: Optimising value through corporate strategy'
  • Corporate strategy, vertical integration and diversification
  • Guest lecture from Michael Müller and exam prep session (correct)
  • Consulting careers meeting

    • What are the potential risks of diversification?

  • None of the above
  • Being in the shareholder's interest, economies of scope, and cultural similarities
  • Not being in the shareholder's interest, diseconomies of scope, and cultural differences (correct)
  • Exploiting economies of scope, developing market power, and exploiting information advantages

    • What is the difference between operational and strategic relatedness in diversification?

    <p>Operational relatedness refers to sharing activities in the value chain, while strategic relatedness refers to sharing resources and capabilities</p> Signup and view all the answers

    What are the sources of strategic relatedness between businesses?

    <p>Resource allocation, strategy formulation, and performance management and control</p> Signup and view all the answers

    What are the three tests for analyzing corporate scope decisions?

    <p>Better-off test, industry attractiveness test, and cost of entry test</p> Signup and view all the answers

    What are the examples of companies used in the course in relation to vertical integration and outsourcing?

    <p>Luxottica, Disney, and Zara</p> Signup and view all the answers

    What is required of students if they use AI for research?

    <p>They must submit any AI-generated text as an appendix and formulate their own responses to questions</p> Signup and view all the answers

    Study Notes

    Title: Imperial College Business School Course Announcements and Corporate Strategy

    • The course includes an exam on May 2nd with a revised time of 14:30-16:30.

    • Coursework parts A and B are due on March 24th at 12:00.

    • The consulting careers meeting will take place on March 16th from 18:00-19:00.

    • The week 10 lecture will include a guest lecture from Michael Müller and a revision and exam prep session.

    • Students are required to read the case "CRH plc: Optimising value through corporate strategy" before next week's lecture.

    • The course assessment includes a group assignment due on March 24th, a 2-hour exam on May 2nd, and additional reading and research.

    • Students are encouraged to use AI for research but must submit any AI-generated text as an appendix and formulate their own responses to questions.

    • All sources must be referenced and plagiarism is not allowed.

    • The same grade is given to every member of the group unless peer review is requested.

    • The grading rubric for the group assignment can be found on Insendi.

    • The course covers corporate strategy, vertical integration and diversification, and transaction cost theory.

    • The course includes examples of companies such as Luxottica, Disney, and Zara in relation to vertical integration and outsourcing.Corporate Strategy: Vertical Integration and Diversification

    • Consolidation and retrenchment are defensive strategies in which an organization focuses on its current market and products.

    • Vertical integration involves expanding a firm's activities either upstream or downstream in the value chain.

    • Diversification involves expanding a firm's activities into new products or markets.

    • There are two types of relatedness in diversification: operational relatedness and strategic relatedness.

    • The benefits of diversification include exploiting economies of scope, developing market power, and exploiting information advantages.

    • The potential risks of diversification include not being in the shareholder's interest, diseconomies of scope, and cultural differences.

    • There is no consistent relationship between diversified firms and specialized firms' performance.

    • Related diversification tends to outperform unrelated diversification.

    • The sources of strategic relatedness between businesses are resource allocation, strategy formulation, and performance management and control.

    • The better-off test, industry attractiveness test, and cost of entry test are useful tools for analyzing corporate scope decisions.

    • Vertical integration can be beneficial but is often costly.

    • Diversification tends to be more successful when there is something "core" that a firm can leverage.

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    Description

    Test your knowledge on corporate strategy, vertical integration, and diversification with this quiz based on Imperial College Business School's course announcements. This quiz covers topics such as defensive strategies, benefits and risks of diversification, relatedness in diversification, and the tools used for analyzing corporate scope decisions. It also includes examples of companies such as Luxottica, Disney, and Zara in relation to vertical integration and outsourcing. Whether you're a student of the course or just interested in corporate strategy, this quiz

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