Identify and Explain the Meaning and Strategic Significance of Each

question 7

Essay

Identify and explain the meaning and strategic significance of each of the following terms:
a)the attractiveness test (as it relates to a potential diversification move)
b)the better-off test (as it relates to a potential diversification move)
c)related diversification
d)unrelated diversification
e)strategic fit
f)economies of scope
g)divestiture
h)corporate restructuring

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Definitions:

Wholesale Manufacturer

A business entity that produces goods in large quantities to be sold by retailers, typically at lower per-unit prices.

Justice Department

The United States federal executive department responsible for the enforcement of the law and administration of justice.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 that prohibits monopolistic and anticompetitive practices.

U.S. Exports

Goods, services, and technologies sent from the United States to other countries, contributing to trade balances and economic growth.