Question

Evaluating the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve which one of the following?

a) Determining whether the strategic fits present sizable opportunities to reduce costs by combining the performance of certain related activities (and thereby capture economies of scope) and whether these cost-savings might be big enough to give one or more of the company's businesses a cost-based competitive advantage over rivals
b) Evaluating whether the fits among the strategies of each business unit are sufficiently compatible to produce strong resource fit and generate the financial resources needed for each business to aggressively competitive advantage in their respective industries
c) Evaluating whether there is much competitive value to be gained from cross-bu collaboration to create valuable new resources or capabilities that could driv gains in performance
d) Determining whether there is much competitive value to be gained from cross-business transfer of technology, skills, or know-how to correct the resource/capability deficiencies of the diversified company's weaker businesses and thereby boost their performance
e) Determining whether there is much competitive benefit to be gained from cross-business sharing of either the well-respected brand name of a sister business or the corporate parent's umbrella brand name pursue and have success in achieving a sustainable e significant

Answer 1

Answer: evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance.

Step-by-step explanation:

Related Diversification is a situation whereby a company expands its production line or markets bu producing a new product or in a case whereby a company has to penetrates a new market that is related to the business activity of the company.

It should be noted that the evaluation of the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance