Which of the Following Is Not a Major Consideration in Evaluating

question 109

Multiple Choice

Which of the following is not a major consideration in evaluating the pluses and minuses of a diversified company's strategy?

• A) Checking whether the company's resources fit the requirements of its present business lineup
• B) Scrutinizing each industry/business to determine where driving forces are strongest/weakest and how many profitable strategic groups the company has diversified into
• C) Ranking the performance prospects of the various businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its different businesses
• D) Checking the competitive advantage potential of cross-business strategic fits
• E) Assessing the competitive strength of each business the company has diversified into and determining which ones are strong/weak contenders in their respective industries

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Definitions:

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Importance

The relevance or significance of something in a given context, often determining the priority or attention it receives.

Segmenting

The process of dividing a broad consumer or business market into subgroups with similar characteristics, needs, or behaviors.

Targeting Markets

The process of identifying and focusing on specific groups of potential customers to whom a company aims to sell its products or services.