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

Involves the addition of a rewarding stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Negative Punishment

A behavior modification technique where a desirable stimulus is removed after a particular behavior, with the aim of decreasing that behavior.

Negative Reinforcement

A behavior modification technique where the removal of an unfavorable outcome or stimulus strengthens or increases the likelihood of a specific response or behavior.

Variable-Interval Schedule

A reinforcement schedule in which the behavior is reinforced after an unpredictable amount of time has passed, creating a steady, consistent response rate.