Michael Porter believes that managing linkages among businesses through transferring skills and sharing resources offer greater potential for creating value than portfolio management because:
A)Economies of scope have a greater impact on profitability than industry attractiveness
B)The size of acquisition premiums means that acquisitions can no longer deliver satisfactory shareholder value
C)Increasingly efficient capital markets limit the potential for firms to create value through allocating capital among their businesses
D)The propensity for stock markets to apply a conglomerate discount to highly diversified companies

Question

Quizplus · Accepted Answer

Efficient capital markets reduce the potential for firms to create value simply by reallocating capital, making managing linkages and sharing resources more valuable.

Michael Porter Believes That Managing Linkages Among Businesses Through Transferring