Exam 8: Corporate Strategy: Diversification and the Multibusiness Company

Why is it pertinent in evaluating a diversified company's business lineup to rank a diversified company's businesses on the basis of their future performance prospects?

The success of unrelated diversification is contingent upon management's ability to

Cross-business strategic fits are unlikely to be derived from

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

The two biggest drawbacks or disadvantages of unrelated diversification are

Which one of the following is not one of the elements of crafting corporate strategy for a diversified company?

Different businesses are said to be unrelated when

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?

When industry attractiveness ratings are calculated for each of the industries a multibusiness company has diversified into,the results help indicate

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when

Which of the following statements about corporate diversification is incorrect?

Diversification ought to be considered when a

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

What is meant by the term resource fit as it applies to evaluating a diversified company's business lineup?

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

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

When calculating industry attractiveness scores,to produce a valid response it is necessary to

Apple Inc.'s decision to acquire Beats Electronics and Beats Music in 2014 for $3 billion rather than enter into a joint venture with that company was an attractive strategy option for entering a promising new industry in headphones and streaming music services because it

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.