1. Pick one of the four companies listed in Illustration Capsule 8.2 and explain why you think
that company has an unrelated diversification strategy.
2. Describe the restructuring strategy which made VF the leader in profits and innovation in its
industry
3. Identify and briefly discuss each of the three tests for determining whether diversification
into a new business is likely to build shareholder value.
4. Briefly explain what is meant my each of the following terms:
a.) relative market share
b.) resource fit
c.) a cash hog business
d.) a cash cow business
5. A strategy of multinational diversification contains more built-in competitive advantage
potential (above and beyond what is achievable through a particular business's own
competitive strategy) than any other diversification strategy. True or false? Explain and
support your answer.
6. Which is the better approach to diversification-a strategy of related diversification or a
strategy of unrelated diversification? Explain and support your answer.
7. Under what circumstances might an already diversified company chose to pursue corporate
restructuring?
8. How would you characterize the company's corporate strategy? Related diversification, unrelated diversification, or a combination related-unrelated diversification strategy? Explain your answer.
9. What is Kraft Foods Inc.'s corporate strategy? How has its corporate strategy evolved since its independence in 2007?