Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as
A)vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates.
B)relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.
C)the appeal of its strategy, the relative number of competitive capabilities, the number of products in each business's product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes.
D)the ability to hurdle barriers to entry, value chain attractiveness, and business risk.
E)cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.

Question

Quizplus · Accepted Answer

Factors such as relative market share, ability to beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses are more relevant and appropriate for assessing how a diversified company's subsidiaries compare in competitive strength. Vulnerability to seasonal and cyclical downturns, driving forces, fluctuating interest rates, and exchange rates are outside factors that may affect performance but are not factors that directly compare one subsidiary to another in terms of competitive strength. Other factors such as appeal of strategy, number of competitive capabilities, and product lines do provide insight into a subsidiary's competitiveness but may not necessarily compare subsidiaries relative to each other.

Assessments of How a Diversified Company's Subsidiaries Compare in Competitive