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Corporate parenting refers to all of the following EXCEPT
A diversified company has a parenting advantage when it
With an unrelated diversification strategy, the types of companies that make particularly attractive
acquisition targets are
The two biggest drawbacks or disadvantages of unrelated diversification are
For an unrelated diversification strategy to produce financial results above that of stand-alone entities,
executives must do all of the following EXCEPT
The two biggest drawbacks or disadvantages of unrelated diversification are
Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder
value?
Two important negatives of unrelated diversification are
The one factor that company executives need not worry about when their company is managing many
diverse, unrelated firms is to
Which of the following is NOT an erroneous rationale for unrelated diversification?
Which of the following is a diversified business with one major “core” business and a collection of
small related or unrelated businesses?
Which of the following is a diversified business with one major “core” business and a collection of
small related or unrelated businesses?
There is ample room for companies to customize their diversification strategies and be defined as being
either narrowly or broadly diversified, and when combination related-unrelated diversification strategy
options are adopted, they have particular appeal to
Which one of the following is NOT an important aspect of evaluating the merits of a diversified
company’s strategy?
As a rule, the key indicators of industry attractiveness, for all the industries represented in a diversified
company’s business portfolio, should NOT be measured on such attractiveness factors as
Which of the following is NOT generally something that ought to be considered in evaluating the
attractiveness of a multibusiness (diversified) company’s business makeup?
Calculating quantitative attractiveness ratings for the industries a company has diversified into involves
The chief purpose of calculating quantitative industry attractiveness scores for each industry a company
has diversified into is to
A weighted industry attractiveness assessment is generally analytically superior to an unweighted
assessment because
When calculating the weighted industry attractiveness scores, we find the more intensely competitive an
industry is
What hurdles are present in calculating industry attractiveness scores?
For a diversified company to be a strong performer
Assessments of how a diversified company’s subsidiaries compare in competitive strength should be
based on such factors as
Calculating quantitative competitive strength ratings for each of a diversified company’s business units
involves
The value of determining the relative competitive strength of each business a company has diversified
into is to have a quantitative basis for
What does a competitive strength score above 5 tell us about a diversified company’s position in the
market?
The nine-cell industry attractiveness competitive strength matrix
One of the most significant contributions to strategy making in diversified companies that the nine–cell
industry attractiveness competitive strength matrix provides is
The nine-cell attractiveness-strength matrix provides clear, strong logic for considering using
Checking the competitive advantage potential of cross-business strategic fits in a diversified company
involves evaluating the extent to which sister businesses present opportunities
Checking a diversified company’s business portfolio for the competitive advantage potential of cross-
business strategic fits does NOT involve ascertaining the extent to which sister business units
Which of the following is NOT a part of checking a diversified company’s business units for cross–
business competitive advantage potential?
A diversified company’s business units exhibit good resource fit when
The businesses in a diversified company’s lineup exhibit good resource fit when
What is it called when a diversified company can add value by shifting capital from business units
generating free cash flow to those needing additional capital to expand and realize their growth
potential?
A diversified company’s business units exhibit good financial resource fit when