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Novartis, Formerly Ciba-Geigy, Uses Portfolio Management to Improve Many Key

Question 67

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Novartis, formerly Ciba-Geigy, uses portfolio management to improve many key activities, including resource allocation and reward and evaluation systems. This is an example of using
A.related diversification to achieve value by leveraging pooled negotiating power to attain economies of scope.
B.related diversification to acquire market power by leveraging pooled negotiating power.
C.unrelated diversification to acquire financial synergies through portfolio management.
D.related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting.

Correct Answer:

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C B
Explanation: A corporation may diver...

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