Professional Documents
Culture Documents
Short Answer Questions: Chapter 9 Ethics & Strategy
Short Answer Questions: Chapter 9 Ethics & Strategy
TB 9-1
Chapter 8 DIVERSIFICATION
1. Identify and briefly discuss each of the three options for entering new businesses. Which one is the most popular in the sense of being used most frequently? 2. Carefully explain the difference between a strategy of related diversification and a strategy of unrelated diversification. 3. Which is the better approach to diversificationa strategy of related diversification or a strategy of unrelated diversification? Explain and support your answer. 4. What is meant by the term strategic fit? What are the advantages of pursuing strategic fit in choosing which industries to diversify into? 5. Discuss the pros and cons of a strategy of unrelated diversification. 6. Identify and briefly describe the six steps involved in evaluating a diversified company's business lineup and diversification strategy. 7. What does the industry attractiveness test evaluate a diversified company's business lineup? Why is it relevant? 8. What is the relevance of quantitatively measuring the competitive strength of each business in a diversified company's business portfolio and determining which business units are strongest and weakest? 9. Briefly explain what is meant by resource fit 9. What are the advantages and benefits of using an industry attractive-business strength matrix to evaluate a diversified company's lineup of businesses? 10. What is meant by the term resource fit as it applies to evaluating a diversified companys business lineup? 11. Explain the difference between a cash cow business and a cash hog business. 12. Shareholder interests are generally best served by concentrating corporate resources on businesses that can contend for market leadership. True or false? Explain your answer. 13. Why is it pertinent in evaluating a diversified company's business lineup to rank a diversified companys businesses on the basis of their future performance prospects? 14. Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, what are the five main strategic alternatives that it can employ to improve the performance of its overall business lineup? 15. Under what circumstances might an already diversified company chose to enter additional businesses and broaden its diversification base? 16. Under what circumstances might a diversified firm choose to divest one of its businesses? 17. Under what circumstances might an already diversified company chose to pursue corporate restructuring? 18. Identify and briefly describe at least four types of competitive advantages that can accrue to a multinational corporation pursuing related diversification. 19. A strategy of multinational diversification contains more built-in competitive advantage potential (above and beyond what is achievable through a particular businesss own competitive strategy) than any other diversification strategy. True or false? Explain and support your answer.
TB 9-2
TB 9-3
TB 9-4
TB 9-5