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The procedure for evaluating a diversified company's strategy involves all of the following steps except Multiple...

The procedure for evaluating a diversified company's strategy involves all of the following steps except

Multiple Choice

  • checking whether the firm's resources fit the requirements of its present business lineup.

  • assessing the competitive strength of each business the company has diversified into and determining which ones are strong or weak contenders in their respective industries.

  • ranking the performance prospects of the various businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its different businesses.

  • checking the competitive advantage potential of cross-business strategic fit among the company's various business units.

  • a determination of the degree of risk involved with each business unit.

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Answer #1

Correct option is: a determination of degree of risk involved with each business unit

while evaluating a diversified company's strategies following procedures shall be adopted:

  • To take a view on quantity and quality of available resources and to check whether they are sufficient
  • To know the powers and weaknesses of contenders of the industry and leading in competitive environment
  • Ranking the performance according to the goals of the organisation
  • Checking the Competitive advantage

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