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A Diversified Company That Leverages the Strategic Fits of Its

Question 21

Multiple Choice

A diversified company that leverages the strategic fits of its related businesses into competitive advantage


A) selects the appropriate value chain operating practices to improve the financial outlook.
B) has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value.
C) has a clear path to divesting its best-performing businesses.
D) achieves economies of scale and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.
E) forces cultural independence,operating diversity,and sophisticated analytical responsibility on the businesses to ensure compatibility with the overall corporate identity.

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