Exam 8: Corporate Strategy: Diversification and the Multibusiness Company

The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves:

A diversified company that leverages the strategic fits of its related businesses into competitive advantage:

Explain the relevance of the following as they relate to building shareholder value via diversification: a)the industry attractiveness test b)the cost-of-entry test c)the better-off test

Divestiture can be accomplished best when the company:

In diversified companies with unrelated businesses,the strategic attention of top executives tends to be focused on:

The tests of whether a diversified company's businesses exhibit resource fit do NOT include:

To test whether a particular diversification move has good prospects for creating added shareholder value,corporate strategists should use:

The cost-of-entry test for evaluating whether diversification into a particular industry is likely to build shareholder value involves:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as:

What are the advantages and benefits of using an industry attractive-business strength matrix to evaluate a diversified company's lineup of businesses?

A popular strategy for entering new businesses and accomplishing diversification is:

When calculating the weighted industry attractiveness scores,we find the more intensely competitive an industry is:

To create value for shareholders via diversification,a company must:

A portfolio approach to managing a company's financial resource fit is based on:

The two biggest drawbacks or disadvantages of unrelated diversification are:

Businesses with strategic fit with respect to their supply chain activities perform better together because of all of the following EXCEPT:

Relative market share is:

With a strategy of unrelated diversification,an acquisition is deemed to have potential if it:

A big advantage of related diversification is that:

A related diversification strategy involves building the company around businesses: