A Key Issue in Companies Pursuing an Unrelated Diversification Strategy

question 70

Multiple Choice

A key issue in companies pursuing an unrelated diversification strategy is:

• A) how wide a net to cast in building a portfolio of unrelated businesses.
• B) whether to keep or divest businesses whose technological approaches do not match the overall technology and R&D strategy of the corporation.
• C) how quickly to divest businesses whose competitive strategies do not closely match the competitive strategies of sister businesses.
• D) whether to build shareholder value via paying higher dividends or via actions aimed at increasing the company's stock price.
• E) whether to acquire new businesses that offer the potential for achieving greater economies of scope or businesses that offer the potential for achieving greater economies of scale.

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Definitions:

Success

The achievement of an objective or goal, often marked by prosperity, attainment, or accomplishment.

Individuals

Refers to single human beings, distinct from others in a group.

EMDR

Eye Movement Desensitization and Reprocessing is a psychotherapy treatment designed to alleviate the distress associated with traumatic memories.

Desensitization

A therapeutic technique aimed at reducing a person's emotional response to a stimulus by repeated exposure to it.