A strategy of diversifying into unrelated businesses
A) is aimed at achieving good financial fit (whereas related diversification aims at good strategic fit) .
B) is the best way for a company to pass the attractiveness test in choosing which types of businesses/industries to enter.
C) discounts the importance of strategic fit and instead focuses on building and managing a group of businesses in attractive industries that can acquired on financial terms that allow for acceptable returns on investment.
D) concentrates on diversifying into businesses where a company can leverage use of a well-known brand name in ways that create added value for shareholders.
E) generally offers more competitive advantage potential than related diversification.
Correct Answer:
Verified
Q10: Diversification ought to be considered when a
A)company's
Q13: A joint venture is an attractive way
Q17: Which one of the following is not
Q18: Diversifying into new businesses can be considered
Q19: Which one of the following is not
Q22: What rationales for unrelated diversification are not
Q23: What makes related diversification an attractive strategy
Q23: Opportunities for cross-business strategic fit exist
A)in R&D
Q24: One strategic fit-based approach to related diversification
Q37: When evaluating strategic fit benefits that related
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