A Diversified Company That Leverages the Strategic Fits of Its

question 39

Multiple Choice

A diversified company that leverages the strategic fits of its related businesses into competitive advantage

• A) has a distinctive competence in its related businesses.
• B) has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value.
• C) has a clear path to global market leadership in the industries where it has related businesses.
• D) passes the value chain test and the profit expectations test for building shareholder value.
• E) achieves economies of scale and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.

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Definitions:

Excavates

A group of protists characterized by their unique cellular structures, including a notable feeding groove "excavated" from one side.

Closest Relatives

Organisms that are most closely related to each other through shared ancestry in the tree of life.

Animals

Multicellular, eukaryotic organisms of the kingdom Animalia or Metazoa, characterized by their ability to move voluntarily, consume organic material, breathe oxygen, and reproduce sexually.

Choanoflagellates

Aquatic microorganisms thought to be the closest living relatives of animals, characterized by their flagellum and collar structure.