Which of the Following Statements About Cross-Business Strategic Fit in a Diversified

question 33

Multiple Choice

Which of the following statements about cross-business strategic fit in a diversified enterprise is not accurate?

• A) Strategic fit between two businesses exists when the management know-how accumulated in one business is transferable to the other.
• B) Strategic fit exists when two businesses present opportunities to economize on marketing, selling, and distribution costs.
• C) Competitively valuable cross-business strategic fits are what enable related diversification to produce a 1 + 1 = 3 performance outcome.
• D) Strategic fit is primarily a byproduct of unrelated diversification and exists when the value chain activities of unrelated businesses possess economies of scope and good financial fit.
• E) Strategic fit exists when a company can transfer its brand name reputation to the products of a newly acquired business and add to the competitive power of the new business.

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