Empirical Studies of the Outcomes of Corporate Refocusing Initiatives Show

question 41

True/False

Empirical studies of the outcomes of corporate refocusing initiatives show that divesting diversified businesses increases profitability and generates positive returns for shareholders.

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Definitions:

Corporate Cults

Organizations that cultivate intense employee loyalty and devotion, sometimes to the point of excluding outside influences and fostering an insular culture.

Subcultures

Distinct cultural groups within a larger culture, each with its own values, practices, and beliefs that differentiate them from the broader culture.

Adaptive Cultures

Corporate cultures that are flexible and responsive to changes in the external environment, facilitating innovation and change within the organization.

Stable Value System

Refers to an established and consistent set of beliefs and ethical standards that guide an individual or organization's behavior.