Question

The procedure for evaluating the pluses and minuses of a diversified company's strategy includes

A) assessing the attractiveness of the industries the company has diversified into.
B) assessing the competitive strength of each business the company has diversified into to see which ones
are the strongest/weakest contenders in their respective industries.
C) ranking the performance prospects of the various businesses from best to worst and determining the
priorities for resource allocation.
D) checking the competitive advantage potential of cross-business strategic fits and also checking whether
the firm's resources fit the needs of its present business lineup.
E) All of the above.

Answer 1

The evaluation of a diversified company's strategy includes analyzing industry attractiveness, business competitive strength, performance prospects, and the competitive advantage potential, including assessing both strategic fits and resource allocation.

Step-by-step explanation:

The procedure for evaluating the pluses and minuses of a diversified company's strategy encompasses a series of analyses that include:

1. Assessing the attractiveness of the industries the company has diversified into.
2. Assessing the competitive strength of each business the company has diversified into to determine which ones are the strongest/weakest contenders in their respective industries.
3. Ranking the performance prospects of the various businesses from best to worst and determining the priorities for resource allocation.
4. Checking the competitive advantage potential of cross-business strategic fits and also checking whether the firm's resources fit the needs of its present business lineup.

When these steps are taken together, they form a comprehensive approach to reviewing a diversified company's business strategy and positional strength in its various markets.