Imagine that you have been hired by Bill Newlands, President and COO of Constellation Brands (CB) , to review the beverage company's diversified portfolio of businesses. Of the analytical tools that you could use to assess CB's business lineup for adequate resource fit, which one would you not be likely to use?
A) estimating whether the excess cash flows generated by cash cow businesses in CB's portfolio are sufficient to cover the negative cash flows of its cash hog businesses
B) assessing whether or not CB's recently acquired businesses are acting to strengthen this company's resource base and competitive capabilities or whether they are causing its competitive and managerial resources to be stretched too thinly across its businesses
C) determining whether or not the opportunity exists for CB to achieve 1 + 1 = 2 outcomes among CB's portfolio of brands
D) analyzing whether or not CB has adequate financial strength to fund its different businesses and maintain a healthy credit rating
E) conducting feasibility studies into whether or not CB possesses or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into
Correct Answer:
Verified
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