A Diversified Company That Leverages the Strategic Fits of Its

question 20

Multiple Choice

A diversified company that leverages the strategic fits of its related businesses into competitive advantage

• A) has a distinctive competence in its related businesses.
• B) has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value.
• C) has a clear path to global market leadership in the industries where it has related businesses.
• D) passes the value chain test and the profit expectations test for building shareholder value.
• E) achieves economies of scope and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.

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Definitions:

Wet Deposition

This is the process by which acidic or pollutant materials are removed from the atmosphere in the form of precipitation, such as rain, snow, or fog.

Coal-Burning Power Plants

Facilities that generate electricity by burning coal as fuel, releasing carbon dioxide and potentially other pollutants.

Sulfur Dioxides

are a type of air pollutant produced from burning fossil fuels, contributing to acid rain.

Respiratory Tracts

The pathways that air takes to enter and leave the lungs, facilitating gas exchange.