Question

Which of the following is not a part of checking a diversified company's business units for cross-business competitive advantage potential?

A. Ascertaining the extent to which sister business units have value chain match-ups that offer opportunities to combine the performance of related value chain activities and reduce costs
B. Ascertaining the extent to which sister business units have value chain match-ups that offer opportunities to transfer skills or technology or intellectual capital from one business to another
C. Ascertaining the extent to which sister business units are making maximum use of the parent company's competitive advantages

Answer 1

C. Ascertaining the extent to which sister business units are making maximum use of the parent company's competitive advantages.

Step-by-step explanation:

For a diversified company that has many business units, it is important for the sister units to provide opportunities that make more profit for the business.

These opportunities are generated by the ability of each sister unit to have a unique competitive edge not shared by other business units.

In analysing cross business competitive advantage among sister units, we don't consider which sister business units are making maximum use of the parent company's competitive advantages.

This is because the company's competitive advantage is a trait shared by all the business units. It does not show a unique competitive edge of sister units.