Options for Revising a Corporate Strategy

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The section entitled $$Evaluating the Strategy of a Diversified Company$$ of Chapter $8,$ "Corporate Strategy: Diversification and the Multibusiness Company" describes the strategic options that a diversified company can follow to improve their overall performance. They can,

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Stick closely with the existing business lineup and pursue the opportunities these businesses present.

Broaden the company$$s business scope by making new acquisitions in new industries.

Divest certain businesses and retrench to a narrower base of business operations.

Restructure the company$$s business lineup and put a whole new face on the company$$s business makeup.

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The goal of this activity is for you to understand the four main corporate strategy options a diversified company can employ to improve company performance.

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Before completing these activity, be sure to review Chapter $8,$Corporate Strategy: Diversification and the Multibusiness Company;$$ specifically, the section entitled $$Evaluating the Strategy of a Diversified Company.$$

$4$a$.$ Which strategy would a diversified...

Which strategy would a diversified company pursue if the existing businesses offered attractive growth opportunities and could create economic value to the shareholders?

Multiple Choice

Sell off some businesses.

Stick closely with the existing business lineup.

Restructure.

Make new acquisitions in similar industries.

Make new acquisitions in unrelated industries.