The Success of Unrelated Diversification Is Dependent Upon Management's Ability

question 57

Multiple Choice

The success of unrelated diversification is dependent upon management's ability to

• A) acquire new businesses that utilize much the same technology as existing businesses.
• B) divest businesses whose competitive strategies do not match the overall competitive strategy of the corporation.
• C) acquire new businesses having attractive distribution-related and customer-related strategic fits with existing businesses.
• D) spotting bargain-priced companies with big upside potential and then turning around their operations quickly with the aid of the parent company's financial resources and managerial know-how.
• E) identify potential new acquisition candidates that are cash cows (as opposed to cash hogs).

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Definitions:

Anxious

Characterized by feelings of worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Cultural Intelligence

The ability to relate to and work effectively across cultures.

Cultural Differences

Variations in the norms, values, beliefs, and practices among people from different backgrounds or societies.

Learning Opportunities

Situations or experiences from which knowledge or skills can be acquired.