A diversified company that leverages the strategic fits of its related businesses into competitive advantage
A) has a distinctive competence in its related businesses.
B) has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value.
C) has a clear path to global market leadership in the industries where it has related businesses.
D) passes the value chain test and the profit expectations test for building shareholder value.
E) achieves economies of scale and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.
Correct Answer:
Verified
Q22: One of the suggested advantages of an
Q26: The basic premise of unrelated diversification is
Q29: Cross-business strategic fits can be derived from
A)
Q31: The essential requirement for different businesses to
Q33: Which of the following is not one
Q33: Economies of scope
A)are cost reductions that flow
Q34: With an unrelated diversification strategy,the types of
Q35: The one factor that company executives need
Q39: Different businesses are said to be unrelated
Q48: The success of unrelated diversification is contingent
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