Question: Building shareholder value is the ultimate justification for diversification into new businesses. In particular, any move to diversify in this context must pass three Tests

Building shareholder value is the ultimate justification for diversification into new businesses. In particular, any move to diversify in this context must pass three Tests of Corporate Advantage. Please state these fully and clearly. And do indicate which one of these three would be related to Southwest Airlines Company's acquisition of AirTran Airways. Be sure that you explain why your answer to the latter question is indeed correct ?

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The three Tests of Corporate Advantage which serve as a justification for diversification into new businesses are The Industry Attractiveness Test Thi... View full answer

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