Strategies to restructure a diversified company's business lineup involve
A)revamping the value chains of each of a diversified company's businesses.
B)focusing on restoring the profitability of its money-losing businesses and thereby improving the company's overall profitability.
C)revamping the strategies of its different businesses, especially those that are performing poorly.
D)divesting low-performing businesses that do not fit and acquiring new ones where opportunities are more promising to put a new face on the company's business makeup.
E)broadening the scope of diversification to include a larger number of smaller and more diverse businesses.

Question

Quizplus · Accepted Answer

The best strategy to restructure a diversified company's business lineup is to divest low-performing businesses that do not fit and acquire new ones where opportunities are more promising to put a new face on the company's business makeup. Focusing on restoring the profitability of money-losing businesses or broadening the scope of diversification is not a guaranteed way to improve a diversified firm's overall performance. Revamping the value chains and strategies of different businesses may be necessary, but it is not necessarily the best approach to restructure a diversified company.

Strategies to Restructure a Diversified Company's Business Lineup Involve