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

question 90

Multiple Choice

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

• A) have value chain match-ups that offer opportunities to combine the performance of related value chain activities and reduce costs.
• B) have value chain match-ups that offer opportunities to transfer skills or technology or intellectual capital from one business to another.
• C) have opportunities to share use of a well-respected brand name.
• D) have value chain match-ups that offer opportunities to create new competitive capabilities or to leverage existing resources.
• E) are cash cows and which ones are cash hogs.

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Definitions:

Consumption

The total value of goods and services consumed by households and businesses.

APC

Average Propensity to Consume, the fraction of total disposable income that households plan to spend on consumption as opposed to saving.

Income

The financial gain accrued by an individual or entity within a specified period, often through wages, salaries, or investments.

APC

Usually refers to Average Propensity to Consume, which is the fraction of income spent on consumption rather than saved.