Exam 8: Corporate Strategy: Diversification and the Multibusiness Company

One important dimension of resource fit concerns the potential to generate internal cash flows sufficient to fund capital requirements of its business lineup,termed the firm's

What factors should management consider when ranking business units and setting a priority for resource allocation?

What are the four main strategic alternatives a diversified company can employ to improve the performance of its overall business lineup?

A diversified company's business units exhibit good resource fit when

A strategy of diversifying into unrelated businesses

One of the suggested advantages of an unrelated diversification strategy is that it

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

In which of the following instances is retrenching to a narrower diversification base not likely to be an attractive or advisable strategy for a diversified company?

What does the industry attractiveness test involve in evaluating a diversified company's business lineup? Why is it relevant?

Identify and briefly describe the six steps involved in evaluating a diversified company's business lineup and diversification strategy.

Diversification ought to be considered when

A "cash hog" type of business

Carefully explain the difference between a strategy of related diversification and a strategy of unrelated diversification.

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?

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

What rationales for unrelated diversification are not likely to increase shareholder value?