Checking a Diversified Firm's Business Portfolio for the Competitive Advantage

question 15

Multiple Choice

Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of

• A)whether the parent company's competitive advantages are being deployed to maximum advantage in each of its business units.
• B)whether the competitive strategies employed in each business act to reinforce the competitive power of the strategies employed in the company's other businesses.
• C)whether the competitive strategies in each business possess good strategic fit with the parent company's corporate strategy.
• D)the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs,share use of a potent brand name,or transfer skills or technology or intellectual capital from one business to another.
• E)how compatible the competitive strategies of the various sister businesses are and whether these strategies are properly aimed at achieving the same kind of competitive advantage.

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Definitions:

Positive Reinforcement

A method in behavior modification that involves rewarding a desired behavior, thereby increasing the likelihood that the behavior will happen again.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated.

Positive Reinforcement

An increase in the future frequency of a behavior due to the addition of a stimulus immediately following a response.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior, increasing its occurrence.