To Test Whether a Particular Diversification Move Has Good Prospects

question 16

Multiple Choice

To test whether a particular diversification move has good prospects for creating added shareholder value,corporate strategists should use the

• A)profit test,the competitive strength test,and the industry attractiveness test.
• B)better-off test,the competitive advantage test,and the profit expectations test.
• C)barrier to entry test,the competitive advantage test,and the stock price effect test.
• D)strategic fit test,the industry attractiveness test,and the dividend effect test.
• E)the industry attractiveness test,the cost-of-entry test,and the better-off test.

---

Definitions:

Organizational Culture

The shared beliefs, values, norms, and practices that shape the social and psychological environment of a business or institution.

Subculture

A cultural group within a larger culture, often with beliefs or interests at variance with those of the larger culture.

Harley Mystique

The unique brand appeal and cultural influence of Harley-Davidson motorcycles, embodying freedom, rebellion, and American identity.

Product Development

The process of bringing a new product or service to market, involving idea generation, design, development and marketing.