When considering diversifying into a new industry managers should investigate a group of answer choices?

When considering diversifying into a new industry, managers should investigate: Attractiveness -The industry chosen for diversification must be structurally attractive or capable of being made attractive. Better-off – Either the new unit must gain competitive advantage from its link with the corporation, or vice versa.

When considering diversification into a new industry a firm may enter the new industry by?

A diversified company owns or operates in several unrelated business segments. Companies may become diversified by entering into new businesses on its own by merging with another company or by acquiring a company operating in another field or service sector. Conglomerates are one common form of a diversified company.

When considering diversification into a new industry it is the relatedness of the products produced not the relatedness of the value chain activities that creates value?

When considering diversification into a new industry, it is the relatedness of the products produced (not the relatedness of the value chain activities) that creates value. True or False. False. Alliances are generally easier to manage and are generally more successful than acquisitions.

Which of the following is an important appeal of a related diversification strategy?

Which of the following is an important appeal of a related diversification strategy? Offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another. … A diversified company that leverages the strategic fits of its related businesses into competitive advantage.

When considering diversifying into a new industry it is the relatedness?

When considering diversification into a new industry, it is the relatedness of the products produced (not the relatedness of the value chain activities) that creates value. Firms that have diversified into multiple industries generally change their organizational structure by adding a corporate level (eg, GE, Siemens).

What is diversification in strategic management?

Diversification is a corporate strategy to enter into a new products or product lines, new services or new markets, involving substantially different skills, technology and knowledge. Diversification is one of the four main growth strategies defined by Igor Ansoff in the Ansoff Matrix: Products. Present.

Which of the following is the most compelling reason for diversifying into a new business?

There are four most often cited reasons for diversification: the internal capital market, agency problems, increased interest tax shield and growth opportunities.

Which one of the following is the best example of related diversification?

Related diversification occurs when a firm moves into a new industry that has important similarities with the firm’s existing industry or industries. Because films and television are both aspects of entertainment, Disney’s purchase of ABC is an example of related diversification.

What are three tests for judging a diversification move?

What are the three tests for judging whether a particular diversification move can create value for shareholders? The attractiveness test, the cost-of-entry test, and the better-off test.

When should an organization diversify?

Entering an unknown market puts a significant risk on a company. Therefore, companies should only pursue a diversification strategy when their current market demonstrates slow or stagnant future opportunities for growth.

What is the main reason for diversification?

Solution(By Examveda Team)

The Reasons for diversification is to increase organizational capabilities. Diversification strategies are used to expand firms’ operations by adding markets, products, services, or stages of production to the existing business.

What do you think of diversification as a motive for a deal?

It aims to maximize returns by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.