chapter 10b

chapter 10b - Ch.10 Quiz Instructions Please read the...

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Ch.10 Quiz Instructions Please read the questions carefully. This assessment is worth 100 points. 1. Which one of the following is not a standard part of analyzing the strategy of a diversified company? (10 points) a. Assessing the competitive strength of each business the company has diversified into. b. Determining which business units have the most potential for employing low-cost producer strategies, differentiation strategies, focus strategies, and best-cost producer strategies and also determining how soon the company's cash hogs can be transformed into cash cows. c. evaluating the strategic fits and resource fits among the various sister businesses. d. Identifying the company's current corporate strategy and applying the industry attractiveness test to each of the industries the company has diversified into. e. Rating each business unit on the basis of its historical performance and future prospects and deciding what priority to give each of the company's business units in allocating resources and making new capital investments. 2. 3. To identify a multi-business firm's corporate strategy, one should consider such factors as (10 points) a. the extent to which the firm is diversified (as measured by the proportion of sales and profit contributed by each business and by whether its diversification base is broad or narrow). b. whether the company is focusing on "milking its cash cows" or "feeding its cash hogs." c. the technological proficiencies, labor skill requirements, and functional area strategies characterizing each of the firm's businesses. d. each business's competitive approach whether it is pursuing low-cost leadership, differentiation, best-cost, or focus strategy. e. how many core competencies each business in the portfolio has. 4.
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This note was uploaded on 10/02/2011 for the course FIN 685 taught by Professor Grady during the Spring '11 term at Texas A&M.

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chapter 10b - Ch.10 Quiz Instructions Please read the...

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