MY APPROVED COMPANY IS Walt Disney

MY APPROVED COMPANY IS Walt Disney

Does your approved company have moderate to high levels of diversification, based on Figure 6.1 of your e-text?

If YES, please answer the questions below.

OR

If NO, perform a search on a US-based, publicly-traded company that has moderate to high levels of diversification, than answer the questions below,

1. Provide the link to the corporation's website, where relevant facts about the corporation or investor information are posted.

2. Is the diversification Related Constrained or Related Linked? Why?

3. What is the dominant business? How much revenue does the dominant business generate?

4. What do you believe is the most interesting or unique aspect of the diversification?

---------------give in-text citations and References

MY COMPANY IS Walt Disney

Transcribed Image Text:

Value-Creating Diversification Economies of scope (related diversification) Sharing activities . ● ● . . ● Transferring core competencies Market power (related diversification) Blocking competitors through multipoint competition Vertical integration ● ● Value-Neutral Diversification Antitrust regulation Tax laws Low performance Uncertain future cash flows Risk reduction for firm ● Financial economies (unrelated diversification) Efficient internal capital allocation Business restructuring ● Tangible resources Intangible resources Value-Reducing Diversification • Diversifying managerial employment risk Increasing managerial compensation Value-Creating Diversification Economies of scope (related diversification) Sharing activities . ● ● . . ● Transferring core competencies Market power (related diversification) Blocking competitors through multipoint competition Vertical integration ● ● Value-Neutral Diversification Antitrust regulation Tax laws Low performance Uncertain future cash flows Risk reduction for firm ● Financial economies (unrelated diversification) Efficient internal capital allocation Business restructuring ● Tangible resources Intangible resources Value-Reducing Diversification • Diversifying managerial employment risk Increasing managerial compensation

Answer rating: 100% (QA)

1The Walt Disney Company commonly known as Disney dzni is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank California Dis... View the full answer