Operational Relatedness
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provides opportunities to share resources among the operational activities
of the firm
Dominant-Business Diversification Strategy
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, The firm generates between 70 and 95 percent of its total revenue within a
single business area.
Reflects a small amount of diversification as opposed to the related
constrained strategy
Vertical Integration
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exists when a company produces its own inputs (backward integration) or
owns its own source of output distribution (forward integration).
Which of the following statements is true of managerial motives to diversify?
a. A strong external market for managerial talent may influence managers to pursue
inappropriate diversification.
b. Knowing that their firms could be acquired if they are not managed successfully
discourages executives from using value-creating diversification strategies.
c. An external governance threat is the most effective control of managerial motives
for diversification.
d. Top-level executives' diversification decisions may be held in check by concerns for
their reputation.
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d. Top-level executives' diversification decisions may be held in check by
concerns for their reputation
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provides opportunities to share resources among the operational activities
of the firm
Dominant-Business Diversification Strategy
Give this one a try later!
, The firm generates between 70 and 95 percent of its total revenue within a
single business area.
Reflects a small amount of diversification as opposed to the related
constrained strategy
Vertical Integration
Give this one a try later!
exists when a company produces its own inputs (backward integration) or
owns its own source of output distribution (forward integration).
Which of the following statements is true of managerial motives to diversify?
a. A strong external market for managerial talent may influence managers to pursue
inappropriate diversification.
b. Knowing that their firms could be acquired if they are not managed successfully
discourages executives from using value-creating diversification strategies.
c. An external governance threat is the most effective control of managerial motives
for diversification.
d. Top-level executives' diversification decisions may be held in check by concerns for
their reputation.
Give this one a try later!
d. Top-level executives' diversification decisions may be held in check by
concerns for their reputation
