In a Diversified Company,a Business Subsidiary Has More Competitive Advantage

question 116

Multiple Choice

In a diversified company,a business subsidiary has more competitive advantage potential when

• A) it is a cash cow.
• B) it has value chain relationships with other business subsidiaries that present competitively valuable opportunities to transfer skills or technology or intellectual capital from one business to another, combine the performance of related activities and reduce costs, share use of a well-respected brand name, or collaborate to create new competitive capabilities.
• C) it is the company's biggest profit producer or is capable of becoming the biggest.
• D) it is in a fast-growing industry.
• E) it operates in an industry where competition is less intense and driving forces are relatively weak.

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Definitions:

Hierarchically

Arranged in order of rank, with higher levels of power or importance dominating lower ones.

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The hierarchical framework within an organization that defines who reports to whom, outlining the flow of information and accountability.

Max Weber

A German sociologist, philosopher, and political economist, known for his theories on the development of modern society, particularly relating to bureaucracy, religion, and economics.

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Technical rules refer to the specific, detailed regulations and guidelines that govern processes, operations, or activities within particular fields or industries.