The Task of Crafting Corporate Strategy for a Diversified Company

question 72

Multiple Choice

The task of crafting corporate strategy for a diversified company encompasses

• A) picking the new industries to enter and deciding on the means of entry.
• B) initiating actions to boost the combined performance of the businesses the firm has entered.
• C) pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage.
• D) steering corporate resources into the most attractive business units.
• E) All of these.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.