MGT 3830 : CH16- Test Two Material
Document Summary
True/false questions: people have different opinions about the difficulties associated with diversification. Page: p401: a firm"s business scope never changes over time. Page: p402-403: in an industry, synergies are linkages between different players in the same strategic group. Page: p402-403: in regards to diversification over time, two periods can be distinguished in the last century: 1950 to 1980, when the trend was to diversify, and 1980 to today, characterized by firms refocusing on their core businesses. Page: p404: during the last decade, confidence in the ability of corporate headquarters to build resources and capabilities has vanished, whereas emphasis on the management of several businesses has increased. Page: p405-406: the primary reasons for diversification are growth and risk reduction. Page: p406-409: diversification that reduces the risk of bankruptcy is more beneficial to stakeholders who are not the shareholders. Page: p407-408: the two sources of superior profitability associated with diversification are industry attractiveness and competitive advantage.
