26.
A diversified company that leverages the strategic fits of its related businesses into
competitive advantage
27.
When evaluating strategic fit benefits that related diversification can deliver, one must keep in
consideration a number of factors. Which one is
not
relevant?
28.
The essential requirement for different businesses to be “related” is that
29.
A strategy of diversifying into unrelated businesses
30.
Different businesses are said to be “unrelated” when
31.
The basic premise of unrelated diversification is that
32.
With an unrelated diversification strategy, the types of companies that make particularly
attractive acquisition targets are
33.
One of the suggested advantages of an unrelated diversification strategy is that it
34.
Which of the following is
not
one of the suggested appeals of an unrelated diversification
strategy?
35.
The success of unrelated diversification is contingent upon management’s ability to
36.
The two biggest drawbacks or disadvantages of unrelated diversification are
37.
The two biggest drawbacks or disadvantages of unrelated diversification are
38.
The one factor that company executives need
not
worry about when their company is
managing many diverse, unrelated firms is
39.
What rationales for unrelated diversification are
not
likely to increase shareholder value?
40.
Which of the following is a diversified business with one major “core” business and a
collection of small related or unrelated businesses?
41.
The procedure for evaluating the pluses and minuses of a diversified company’s strategy
includes
42.
Which of the following is
not
a major consideration in evaluating the pluses and minuses of a
diversified company’s strategy?
43.
A comprehensive evaluation of the group of businesses a company has diversified into
involves
44.
As a rule, all the industries represented in a diversified company’s business portfolio should
be judged on such attractiveness factors as
8-39
45.
Which of the following is
not
generally something that ought to be considered in evaluating
the attractiveness of a diversified company’s business makeup?
46.
When industry attractiveness ratings are calculated for each of the industries a multibusiness
company has diversified into, the results help indicate