For an unrelated diversification strategy to produce financial results above that of stand-alone entities, executives must do all of the following except
A) diversify into businesses that can produce consistently good earnings and returns on investment and thereby satisfy the attractiveness test.
B) negotiate favorable acquisition prices (to satisfy the cost of entry test) .
C) do a superior job of corporate parenting via high-level managerial oversight and resource sharing, financial resource allocation and portfolio management, or restructuring underperforming businesses (to satisfy the better-off test) .
D) satisfy the attractiveness test, the cost of entry test, and the better-off test.
E) leverage the cross-business strategic fit advantage effectively.
Correct Answer:
Verified
Q52: An umbrella brand
A)is a generalized resource that
Q53: There is ample room for companies to
Q54: The one factor that company executives need
Q55: As a rule, the key indicators of
Q56: Two important negatives of unrelated diversification are
A)underemphasizing
Q58: Corporate parenting refers to all of the
Q59: The two biggest drawbacks or disadvantages of
Q60: Calculating quantitative attractiveness ratings for the industries
Q61: What is it called when a diversified
Q62: When calculating the weighted industry attractiveness scores,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents