Which of the following is not generally something that ought to be considered in evaluating the attractiveness of a diversified company's business makeup? 20 relative market share), but a 10 percent share is actually strong if the leader's share is only 12 percent (a 0. Operations mostly domestic, increasingly.
C. A slow mover may not be unduly penalized and first-mover advantages can be fleeting. A. their value chains possess competitively valuable cross-business fit relationships. E. focus on broadening the scope of diversification to include a larger number of businesses and boost the company's growth and profitability. Articles on Management Subjects for Knowledge Revision and Updating by Management Executives ---by Dr. Narayana Rao, Professor (Retd. The size of each bubble is scaled to what percentage of revenues the business generates relative to total corporate revenues. Diversification merits strong consideration whenever a single-business company reported. Provide individual businesses with administrative expertise and other corporate resources that lower companywide administrative and overhead costs and enhance the operating effectiveness of individual businesses. D. Shareholder value is created when the diversified company's profitability exceeds expectations.
Providing individual businesses with administrative support services creates value by lowering companywide overhead costs and avoiding the inefficiencies of having each business handle its own administrative functions. Build a portfolio of businesses in unrelated industries by acquiring companies in any industry with growth and earnings prospects that can satisfy the industry attractiveness test and by acquiring undervalued or underperforming businesses that present appealing opportunities for being overhauled in ways that will result in big gains in profitability. E. there are attractive strategic fits between the value chains of the company's present businesses and the value chain of the new business it is considering entering. D. Whether to form a strategic alliance with a pure dot-com enterprise. Representative Value Chain Activities. A. is useful for helping decide which businesses should have high, average, and low priorities in allocating corporate resources. The cost-of-entry test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether. The following three questions help reveal whether a diversified company has adequate nonfinancial resources: 1. Diversification merits strong consideration whenever a single-business company product page. Chapter 8 • Diversification Strategies 184. n Industry profitability. The basic premise of unrelated diversification is that. Two, the capture of cross-business strategic-fit benefits is possible only via a strategy of related diversification.
E. companies that are employing the same basic type of competitive strategy as the parent corporation's existing businesses. When the race among rivals for industry leadership is a marathon rather than a sprint, A. D. Diversification merits strong consideration whenever a single-business company portal. leads to the development of a greater variety of distinctive competencies and competitive capabilities. E. What role the company's Web site should play in the company's competitive strategy. Chapter 8 • Diversification Strategies 190. new product development or technology improvements, and for additional working capital to support inventory expansion and a larger base of operations.
A. get into new businesses that are profitable. Which of the following best illustrates an economy of scope? C. will make the company better off by spreading shareholder risks across a greater number of businesses and industries. CORE CONCEPT Related businesses possess competitively valuable crossbusiness value chain matchups. When calculating industry attractiveness scores, to produce a valid response it is necessary to. 6 Such competitive advantage potential provides a company with a dependable basis for earning profits and a return on investment that exceeds what the company's businesses could earn as stand-alone enterprises. CORE CONCEPT Resource fit concerns whether each company business has adequate access to the resources and capabilities needed to be competitively successful and whether the corporate parent has the financial means and parenting capabilities to support its entire group of businesses. D. knowing what to do if a business unit stumbles. Are cost reductions that flow from operating in multiple businesses. Strategic uses of corporate financial resources (see Figure 8. Diversification merits strong consideration whenever a single-business company A. has integrated - Brainly.com. C. their products are both sold through retailers. C. frequency with which strategic alliances and collaborative partnerships are used in each industry, the extent to which firms in the industry utilize outsourcing, and whether the industries a company has diversified into have common key success factors.
Sometimes, however, the transfer of competitively valuable resources and capabilities is reversed, proceeding from a newly acquired business to existing businesses. B. is directed at improving long-term performance by building stronger positions in a smaller number of core businesses. 7 range have moderate competitive strength vis-à-vis rivals. Assuming a company elects to use the Internet as its exclusive channel for accessing buyers, then which of the following is not one of the strategic issues that it will need to address?
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