A key issue in companies pursuing an unrelated diversification strategy is
A) how wide a net to cast in building a portfolio of unrelated businesses.
B) whether to keep or divest businesses whose technological approaches do not match the overall technology and R&D strategy of the corporation.
C) how quickly to divest businesses whose competitive strategies do not closely match the competitive strategies of sister businesses.
D) whether to build shareholder value via paying higher dividends or via actions aimed at increasing the company's stock price.
E) whether to acquire new businesses that offer potential for achieving greater economies of scope or businesses that offer potential for achieving greater economies of scale.
Correct Answer:
Verified
Q36: Economies of scope
A) stem from the cost-saving
Q37: Strategic fit between two or more businesses
Q39: The essential requirement for different businesses to
Q40: What makes related diversification an attractive strategy
Q42: Businesses are said to be "related" when:
A)
Q42: The procedure for evaluating the pluses and
Q44: In companies pursuing a strategy of unrelated
Q45: The two biggest drawbacks or disadvantages of
Q68: In diversified companies with unrelated businesses,the strategic
Q96: To identify a diversified company's strategy,one should
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