Exam 8: Corporate Strategy: Diversification and the Multibusiness Company

Establishing investment priorities and steering corporate resources into the most attractive business units typically requires the company to decide on various options,EXCEPT for:

The value of determining the relative competitive strength of each business a company has diversified into is:

Identify and briefly discuss each of the three tests for determining whether diversification into a new business is likely to build shareholder value.

Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed,which one of the following is NOT one of the main strategy options that a company can pursue?

A weighted industry attractiveness assessment is generally analytically superior to an unweighted assessment because:

If entry barriers are low and the industry is populated by small firms,internal development may be the preferred mode of entry.But if entry barriers cannot be overcome readily,then the only feasible entry route may be through a(n):

The essential requirement for different businesses to be "related" is that:

In judging the attractiveness of the industry that a multibusiness company has diversified into,it is important to:

What is meant by the term strategic fit? What are the advantages of pursuing strategic fit and matchups in choosing which industries to diversify into?

The industry attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether:

Identify and explain the meaning and strategic significance of each of the following terms: a)related diversification b)unrelated diversification c)strategic fit d)economies of scope e)divestiture f)corporate restructuring

The transaction costs of completing a business agreement or deal of some sort,over and above the price of the deal,can include:

Which of the following is NOT among the disadvantages and managerial problems encountered by companies pursuing unrelated diversification strategies?

The basic purpose of calculating competitive strength scores for each of a diversified company's business units is to:

As a rule,the key indicators of industry attractiveness,for all the industries represented in a diversified company's business portfolio,should NOT be judged on such attractiveness factors as:

A company that is already diversified may choose to broaden its business scope by building positions in new related or unrelated businesses because:

Which one of the following is NOT a factor that makes it appealing to diversify into a new industry by forming an internal startup subsidiary to enter and compete in the target industry?

Discuss the pros and cons of a strategy of unrelated diversification.

Acquisition of an existing business is an attractive strategy option for entering a promising new industry because it:

The nine-cell attractiveness-strength matrix provides clear,strong logic for considering: