In Which of the Following Instances Is Retrenching to a Narrower

question 29

Multiple Choice

In which of the following instances is retrenching to a narrower diversification base not likely to be an attractive or advisable strategy for a diversified company?

• A) when a diversified company has businesses that are weakly positioned in their respective industries and are struggling to earn a decent return on investment
• B) when a diversified company has too many cash cows
• C) when one or more businesses are cash hogs with questionable long-term potential
• D) when businesses in once-attractive industries have badly deteriorated
• E) when a diversified company has businesses that have little or no strategic or resource fits with the "core" businesses that management wishes to concentrate on

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Definitions:

Dispositional Characteristics

Refers to inherent qualities or traits of individuals that influence their behavior and attitudes.

Attachment Style

Patterns of expectations, needs, and emotions one exhibits in interpersonal relationships, shaped early in life and based on the individual’s relationship with their caregivers.

Affiliative

Related to building relationships and fostering social connections, often used as a conflict resolution or management style emphasizing harmony and attachment.

FIRO

A theory of interpersonal relations that explains how interpersonal relationships can be understood through three basic needs: inclusion, control, and affection.