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Cross-Business Strategic Fit in a Diversified Enterprise Is Not Normally

Question 22

Multiple Choice

Cross-business strategic fit in a diversified enterprise is not normally achieved when


A) the management know-how accumulated in one business is transferable to the other.
B) two businesses present opportunities to economize on marketing, selling, and distribution costs.
C) related diversification produces a synergistic performance outcome.
D) the value chain activities of unrelated businesses possess economies of scope and good financial fit.
E) a company can transfer its brand-name reputation to the products of a newly acquired business and add to the competitive power of the new business.

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