Creating Value Within Business Units Can Happen When a Firm

question 111

Multiple Choice

Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. This action is known as

• A)restructuring.
• B)leveraging core competencies.
• C)parenting.
• D)sharing activities.

---

Definitions:

Degree of Rivalry

The intensity of competition among existing competitors in a market.

Threat of New Entrants

The potential risk posed by the possibility of new companies entering a market, which can impact the competitive environment and profitability for existing players.

Bargaining Power

The leverage that a party has in negotiations, affecting the terms and conditions of agreements.

Socio-Cultural

Relating to the interaction of social and cultural elements in society, influencing behaviors, values, practices, and institutions.