Exam 8: Corporate Strategy: Diversification and the Multi-Business Company

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

Briefly explain the Nine-Cell Industry Attractiveness-Competitive Strength Matrix and interpret how a weak performing business unit would be depicted in the matrix.

Retrenching to a narrower diversification base

Cross-business strategic fits can be derived from

With an unrelated diversification strategy,the types of companies that make particularly attractive acquisition targets are

A diversified company has a good financial fit when the excess cash generated by its

Businesses are said to be "related" when

Conclusions about what the priorities should be for allocating resources to the various businesses of a diversified company need to be based on such considerations as

Moves to improve a diversified company's overall performance include

Which of the following is not generally something that ought to be considered in evaluating the attractiveness of a diversified company's business makeup?

Diversification ought to be considered when a

Which one of the following is not a rationale for retaining a cash hog business in a diversified company's portfolio?

One strategic fit-based approach to related diversification would be to

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

Briefly explain the relevance of quantitatively measuring the competitive strength of each business in a diversified company's business portfolio and determining which business units are strongest and weakest.

The task of crafting corporate strategy for a diversified company encompasses

Identify and explain the meaning and strategic significance of each of the following terms: a.related diversification b.strategic fit c.economies of scope d.retrenching e.unrelated diversification