Checking a Diversified Firm's Business Portfolio for the Competitive Advantage

question 123

Multiple Choice

Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of:

• A) whether the parent company's competitive advantages are being deployed to maximum advantage in each of its business units.
• B) whether the competitive strategies employed in each business act to reinforce the competitive power of the strategies employed within the company's overall business.
• C) whether the competitive strategies in each business possess good strategic fit with the parent company's corporate strategy.
• D) the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs,share use of a potent brand name,create competitively valuable new capabilities via cross-business collaboration,or transfer skills or technology or intellectual capital from one business to another.
• E) how compatible the competitive strategies of the various sister businesses are and whether these strategies are properly aimed at achieving the same kind of competitive advantage.

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Definitions:

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