The Critical Test of Whether Diversification Will Create Shareholder Value

question 45

True/False

The critical test of whether diversification will create shareholder value is whether it will contribute to competitive advantage.

---

Definitions:

Lewin's Model

A change management model created by Kurt Lewin that includes three stages: unfreezing, changing, and refreezing.

Organizational Change

A process through which a company or organization alters its structures, strategies, operational methods, technologies, or organizational culture to effect change within the organization and adapt to new market trends or challenges.

Transformational Change

The process of change that results in a major and comprehensive redirection of the organization.

Major Redirection

Significant changes or adjustments in strategy, goals, or focus, often in response to changing external conditions or new insights.