According to Porter, industry attractiveness is not enough to justify diversification. There needs to be additional competitive advantage, and the entry cost should not be more than the profits are worth
Correct Answer:
Verified
Q60: Diversified firms remain popular in developing countries
Q61: In theory, the lower risks of a
Q62: Under the Porter model, it really only
Q63: The primary reasons for diversification during the
Q64: Related diversification tends to produce better results
Q66: In practice, internal capital markets tend to
Q67: Diversification that reduces the risk of bankruptcy
Q68: Conglomerates are:
A)Multiple related businesses under the umbrella
Q69: Synergies are opportunities for competitive advantage gained
Q70: A supermarket chain would be a prime
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