A Diversified Company That Leverages the Strategic Fits of Its

Multiple Choice

A diversified company that leverages the strategic fits of its related businesses into competitive advantage:

A) has a distinctive competence in its related businesses.
B) has a clear path to achieving 1 + 1 = 3 gains in shareholder value.
C) has a clear path to global market leadership in the industries where it has related businesses.
D) passes the value chain test and the profit expectations test for building shareholder value.
E) achieves economies of scope and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.