Exam 8: Corporate Strategy: Diversification and the Multibusiness Company

Which of the following is a diversified business with one major core business and a collection of small related or unrelated businesses?

A cash hog type of business

A strategy of diversifying into unrelated businesses

The strategic options to improve a diversified company's overall performance do not include which of the following categories of actions?

Which of the following is not one of the suggested appeals of an unrelated diversification strategy?

The businesses in a diversified company's lineup exhibit good resource fit when

Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?

Retrenching to a narrower diversification base

To create value for shareholders via diversification,a company must

Which one of the following is not a reasonable option for deploying a diversified company's financial resources?

Opportunities for cross-business strategic fit exist

The attractiveness test is the most important test for determining whether diversification into a new business is likely to result in 1 + 1 = 3 increases in shareholder value (as opposed to simply a 1 + 1 = 2 type of increase).True or false? Justify and explain your answer.

The task of crafting a company's overall corporate strategy for a diversified company encompasses all of the following except

Which of the following is not a major consideration in evaluating the pluses and minuses of a diversified company's strategy?

Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of

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

A comprehensive evaluation of the group of businesses a company has diversified into involves

The types of companies that make particularly attractive acquisition targets when employing an unrelated diversification strategy are

A joint venture is an attractive way for a company to enter a new industry when

Calculating quantitative industry attractiveness scores for each industry a company has diversified into