In the process of evaluating the attractiveness of a multibusiness (diversified)company's business lineup, an analyst would generally not consider
A)market size and projected growth rate, industry profitability, and the intensity of competition
B)industry uncertainty and business risk
C)the frequency with which strategic alliances and collaborative partnerships are used in each industry, and the extent to which firms in the industry utilize outsourcing
D)resource requirements, and whether an industry has significant social, political, regulatory, and environmental problems
E)the presence of cross-industry strategic fits and matching resource requirements to the parent company

Question

Quizplus · Accepted Answer

While strategic alliances, outsourcing, and cross-industry strategic fits may be relevant factors in evaluating a diversified company's business lineup, they are not primary considerations. The analyst would primarily focus on factors such as market size, growth rate, profitability, competition, industry uncertainty, business risk, resource requirements, and societal, political, regulatory, and environmental issues.

In the Process of Evaluating the Attractiveness of a Multibusiness