Podcast
Questions and Answers
What is the MAIN benefit of a corporate diversification strategy?
What is the MAIN benefit of a corporate diversification strategy?
- Increasing management complexity and reducing focus
- Lack of competitive resources and market position
- Reducing risks by investing in different businesses (correct)
- Reducing financial economies of scale
What is the KEY difference between related and unrelated diversification?
What is the KEY difference between related and unrelated diversification?
- Related diversification is based on core technologies or competencies, while unrelated diversification is not (correct)
- Related diversification is more complex to manage, while unrelated diversification is simpler
- Related diversification has common customers or suppliers, while unrelated diversification does not
- Related diversification is focused on the value chain, while unrelated diversification is not
What is the purpose of a portfolio matrix approach for managing multiple businesses?
What is the purpose of a portfolio matrix approach for managing multiple businesses?
- To analyze the competitive position of each business
- To balance financial outcomes and growth across the portfolio (correct)
- To determine the optimal level of vertical integration
- To ensure all businesses are at the same stage of development
What does the 'relative market share' dimension represent in the BCG Matrix?
What does the 'relative market share' dimension represent in the BCG Matrix?
What type of diversification strategy is characterized by common customers, suppliers, and core technologies?
What type of diversification strategy is characterized by common customers, suppliers, and core technologies?
Which of the following is a key benefit of vertical integration according to the text?
Which of the following is a key benefit of vertical integration according to the text?
Which of the following is NOT one of the two main elements of corporate-level strategy?
Which of the following is NOT one of the two main elements of corporate-level strategy?
What is a potential benefit of corporate diversification?
What is a potential benefit of corporate diversification?
Which of the following is NOT a potential cost or disadvantage of corporate diversification?
Which of the following is NOT a potential cost or disadvantage of corporate diversification?
Which of the following best describes the role of corporate headquarters in a diversified company?
Which of the following best describes the role of corporate headquarters in a diversified company?
What is the primary advantage of related diversification compared to unrelated diversification?
What is the primary advantage of related diversification compared to unrelated diversification?
Which of the following tools can be used to evaluate and manage a company's business portfolio in a diversified corporation?
Which of the following tools can be used to evaluate and manage a company's business portfolio in a diversified corporation?
