A diversified company that leverages the strategic fits of its related businesses into competitive advantage
A. selects the appropriate value chain operating practices to improve the financial outlook.
B. has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value.
C. has a clear path to divesting its best-performing businesses.
D. achieves economies of scale and passes the reduced-costs test for crafting a diversification strategy capable of creating added shareholder value.
E. forces cultural independence, operating diversity, and sophisticated analytical responsibility on the businesses to ensure compatibility with the overall corporate identity.
B. has a clear path to achieving 1 + 1 = 3 synergy gains in shareholder value. There are many risks that are facing companies... View the full answer