Michael Porter's "attractiveness test" means that a firm considering diversifying into another industry should
A) see that the barriers to entry to that industry are low.
B) be able to see a way to make superior profits in that industry.
C) also consider how unattractive their existing industry is, by comparison.
D) see that some firms in that industry have left, leaving space for newcomers.
Correct Answer:
Verified
Q41: Increased corporate complexity because of expanded scope
Q42: A significant determining factor on whether a
Q43: The managers of firms in low-growth, cash-generative
Q44: Of Michael Porter's three tests of whether
Q45: A major reason why managers are attracted
Q47: Gaining the advantage from economies of scope
Q48: A "technical economy" is
A)a saving which is
Q49: One common argument against diversification strategies is
A)managers
Q50: The most often-cited benefits of diversification are
A)growth,
Q51: Adam Smith, the famous economist, called the
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